HB1146
To Protect Arkansas Taxpayers From A Tax To Collect Taxes.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
Sponsors
AI-Generated Summary
House Bill 1146 amends Arkansas Code § 26-52-203 to prohibit the Department of Finance and Administration from charging a $50 nonrefundable fee for the issuance of new Arkansas gross receipts tax permits. The legislation effectively removes the financial barrier previously required for businesses to obtain the necessary permit to conduct retail sales in the state. While the bill eliminates this specific permit fee, it preserves the existing requirements for non-resident businesses to provide a cash deposit or bond to cover estimated annual sales tax liabilities. The bill intends to alleviate the financial burden on taxpayers by eliminating costs associated with the state's tax collection process.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill are individuals and business entities looking to open new retail businesses in Arkansas, as they will no longer be required to pay the $50 application fee for a gross receipts tax permit. This provides a minor reduction in startup costs for new entrepreneurs and small business owners.
Who Might Suffer?
The primary entity negatively impacted is the Arkansas Department of Finance and Administration, specifically the Revenue Division, which will lose the revenue generated by the $50 permit fees that were previously credited to the State Central Services Fund. Additionally, the state government as a whole may experience a reduction in administrative funding derived from these fees.
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