Arkansas Laws Taking Effect Jan. 1, 2026 Affect Phillips County

Arkansas readers woke on Jan. 1, 2026 to several statutory changes that will influence household budgets, property tax liabilities, county finances, and local economic development efforts. The most visible change for everyday shoppers is the Grocery Tax Relief Act (Act 1008), which eliminates the state portion of the sales tax on groceries. Local option sales taxes remain in place, so residents will continue to pay county and city sales taxes on grocery purchases; the net savings for any household will depend on individual grocery spending and Phillips County and municipal tax rates.

Property owners should note an expanded homestead exemption for disabled veterans under Act 880. The change reduces taxable value for qualifying veterans, which can lower annual property tax bills for county, city, and school levies. Veterans and family members should contact the Phillips County Assessor to learn eligibility requirements and application deadlines so exemptions are applied for the 2026 tax year.

Act 881 creates new business and corporate relocation tax credits intended to attract employers to Arkansas. For Phillips County, those credits could become a tool used by local economic development officials to recruit firms that promise jobs and investment. Such incentives carry tradeoffs: credits can boost short term hiring but also reduce future tax receipts. County leaders and the Phillips County Economic Development Council will need to evaluate any proposed deals against long term fiscal and workforce priorities.

Several statutes mandate expanded insurance coverage for specific health services. Act 628 requires coverage for severe obesity treatment, Act 390 requires lung cancer screening coverage, Act 627 requires lactation and breastfeeding services coverage, and Act 866 requires insurance coverage for birthing center deliveries. Local hospitals, clinics, and insurers will need to align benefits and provider networks to meet the new requirements. In a county where rural healthcare access and provider capacity are ongoing concerns, the mandates could increase access to preventive and maternal services, but they also may shift administrative and billing practices at local providers.

Workforce and unemployment provisions in Acts 631 and 708 adjust state programs that touch job training, benefit eligibility, and unemployment insurance. The precise effects on Phillips County workers will emerge as state agencies implement rule changes; residents seeking clarification should consult the Arkansas Department of Workforce Services or local workforce centers for updated guidance.

Implementation of these laws will require coordination between state agencies, county offices, insurers, employers, and healthcare providers. For Phillips County officials, transparency about projected revenue impacts and clear instructions for residents and veterans will be important in the coming weeks. Residents should review paystubs, insurance plan documents, and property tax notices and contact county offices or benefits administrators with questions to ensure they receive the new savings and protections contained in the 2025 legislative measures.