In a move that has sparked widespread outrage among Arkansas residents, state lawmakers have officially signed into law a bill that exempts college athletes from paying state income tax on earnings tied to their Name, Image, and Likeness (NIL) or a percentage of school athletic revenue. The legislation, which amends the Arkansas Student-Athlete Publicity Rights Act, was signed into law on April 25, 2025, and applies retroactively to January 1, 2025.
House Bill 1917, now Act 838, was sponsored by Senate President Pro Tempore Bart Hester (R – Cave Springs). Former House Speaker Rep. Matthew Shepherd (R – El Dorado) was the other lead sponsor, and current House Speaker Rep. Brian Evans (R – Cabot) was the Co-Sponsor of the bill.
HB1917 allows student-athletes at Arkansas institutions to avoid state income tax on money earned through NIL deals or athletic revenue shares paid directly by their schools. According to the Arkansas Department of Finance & Administration, this exemption is expected to result in a $500,000 General Revenue reduction for FY2026—a cost that will ultimately be supported by the state’s taxpayers.
Sen. Hester defended the legislation, arguing that it would help Arkansas schools attract athletes who “bring a significant amount of revenue to the state” and allow them to “keep up with Tennessee and Texas,” states that do not impose a state income tax.
Social media quickly exposed the legislation’s hypocrisy.
OutKick’s coverage of the bill paints a stark picture of the disparity this law creates: “This means that the regular citizen, who is not making thousands or even millions from a school, will continue paying state income taxes, while the athlete will not have to pay a dime from money made within the state.”
The piece goes on to question whether lawmakers considered the plight of college students working multiple jobs—such as delivering for DoorDash or waiting tables—to pay their way through school. These students, unlike their athlete peers, will continue to face the full burden of state taxes, even as they struggle to make ends meet.
The bill first went through the House and passed easily. Here are those votes.
A Question of Priorities
The justification provided by Sen. Hester—that this law is necessary to compete with states like Texas and Tennessee—falls flat when examined closely. As OutKick points out, “Just because other states work on a different model, and have been for decades, when it comes to taxes, this justifies the reasoning behind giving college athletes a tax break, while regular citizens who will continue living in the state have to keep paying?” This rhetorical question underscores the core issue: Arkansas lawmakers have chosen to prioritize the short-term interests of college athletics over the long-term well-being of their constituents.
The law also includes provisions that shield financial details of these NIL payments from public scrutiny, making them confidential and not subject to open record requests. Additionally, it provides liability protection to schools, conferences, and the NCAA for enforcing compensation limits—a move that critics argue further insulates the athletic system from accountability.
Arkansas legislators must be held accountable for this shortsighted and inequitable decision. By granting tax exemptions to college athletes—some of whom may earn thousands or even millions through NIL deals—while leaving the average taxpayer to shoulder the burden, lawmakers have sent a clear message: the success of college sports programs matters more than the financial struggles of their constituents.
Once HB1917 made it to the Senate floor, it met a bit more resistance. It failed the first time, and that vote was expunged.
This is the second vote, by which it passed.
We have a state spending problem. Is the answer really to keep granting tax exemptions to a select few while leaving Arkansas taxpayers with little to no relief? It’s time for fair solutions, not favoritism.
