New state laws for the new year

A number of new state laws approved during the 2025 legislative session will take effect on Jan. 1, bringing changes that affect taxes, health insurance coverage, workforce requirements and assistance programs across the state.

Among the most significant is the elimination of the state sales tax on groceries under Act 1008. While local sales taxes on food will still apply, the repeal of the state portion is expected to provide ongoing relief for Arkansas residents, particularly as food prices remain elevated.

Other legislation taking effect is aimed at economic development. Act 881 creates new income tax credits designed to encourage corporations to relocate their headquarters to Arkansas and expands how certain investment tax credits may be used.

Several laws will address property tax issues. Act 880 allows certain property held in trusts or limited liability companies to qualify for the homestead property tax exemption available to disabled veterans and eligible surviving spouses and dependents. Another measure, Act 497, exempts vehicles used exclusively for public charities from property taxation.

Agricultural producers will also see a change under Act 621, which allows eligible farmers to use a sales tax identification card in place of a traditional exemption certificate when claiming sales tax exemptions on qualifying purchases. The change is intended to simplify the process.

Multiple laws will also expand health insurance coverage requirements. Act 628 requires certain health benefit plans to cover treatment for diseases and conditions related to severe obesity, though it includes specific criteria and exclusions.

Act 390 mandates coverage for lung cancer screenings and related follow-up care. Act 627 requires insurance coverage for breastfeeding and lactation. Consultant services are provided in outpatient settings. Additionally, Act 866 ensures coverage for deliveries at licensed birthing centers and Act 624 mandates coverage for all types of services provided for breast reconstruction surgeries.

Workforce-related changes include Act 708, which updates unemployment insurance requirements by requiring recipients to report at least five job search contacts each week to remain eligible for benefits. Act 631 allows some recipients of SNAP to meet work-related requirements through volunteer service with state-funded organizations.

The legislature also approved Act 427, which establishes the Strengthen Arkansas Homes Program. The law authorizes grants to help property owners and nonprofit organizations reduce damage from catastrophic wind events, a concern in many parts of the state.

Anyone looking for more information about the Arkansas legislature or laws going into effect can visit https://www.arkleg.state.ar.us.