HB1221
To Exclude Certain Involuntary Sales Of Livestock From Gross Income Under The Income Tax Act Of 1929.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
Sponsors
AI-Generated Summary
House Bill 1221 amends the Arkansas Income Tax Act of 1929 to exclude gains from the involuntary sale of livestock from a taxpayer's gross income. This exemption applies specifically to livestock sold due to weather-related conditions such as drought or flooding. To qualify, the taxpayer must be located in a county where the Governor has declared a state of disaster emergency. Additionally, the funds received from the sale must be reinvested into the purchase of replacement livestock within five years of the involuntary conversion. The act applies retroactively to tax years beginning on or after January 1, 2022.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill are Arkansas livestock producers and farmers who suffer financial losses due to natural disasters. By allowing them to exclude proceeds from involuntary livestock sales from their gross income, these taxpayers can reduce their overall state income tax liability, provided they reinvest the funds in replacement livestock.
Who Might Suffer?
The state government of Arkansas would be negatively impacted in terms of a reduction in tax revenue collected from agricultural taxpayers. There are no other groups significantly burdened by the passing of this legislation.
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