SB80
To Exempt From Gross Income A Gain By A Taxpayer Resulting From The Acquisition Of Property Under The Right Of Eminent Domain Or The Threat Of Condemnation.
Last Action (May 1, 2023): Sine Die adjournment
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AI-Generated Summary
Senate Bill 80 amends Arkansas state income tax law to provide a tax exemption for capital gains resulting from the involuntary sale of real property. Specifically, it excludes from a taxpayer's gross income any financial gain realized when real property is acquired by an entity possessing the power of eminent domain. This applies whether the property is taken through formal eminent domain proceedings or under the threat of condemnation. The change is applicable to tax years beginning on or after January 1, 2023.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are individual and corporate property owners in Arkansas whose real property is acquired by an entity with eminent domain authority, as they will no longer be required to pay state income tax on any capital gains resulting from that involuntary transfer.
Who Might Suffer?
The primary entity negatively impacted is the State of Arkansas, which will experience a reduction in state income tax revenue due to the new exemption. Additionally, there are no specific private groups that face a direct negative impact, as the bill provides tax relief to taxpayers undergoing a forced sale.
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