HB1366
To Create An Income Tax Credit For Property Tax Paid On Certain Poultry Structures; And To Offset The Property Tax Burden On Poultry Farmers.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
Sponsors
AI-Generated Summary
House Bill 1366 establishes an income tax credit for taxpayers who pay property taxes on poultry structures in Arkansas. A 'poultry structure' is defined as a facility used for commercial poultry production, such as broiler houses, turkey grow-out houses, laying houses, hatching units, nursery units, and breeding houses. The bill provides a credit equal to 20% of the real property tax paid on such structures during the tax year. If the credit amount exceeds the taxpayer's total income tax liability, the excess amount will be refunded to the taxpayer. The legislation is intended to offset the property tax burden specifically for poultry farmers. The act applies to tax years beginning on or after January 1, 2023.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are commercial poultry farmers and agricultural property owners in Arkansas who operate facilities such as broiler or turkey grow-out houses, laying houses, and breeding units. These individuals will receive a direct financial benefit in the form of an income tax credit and potential tax refunds, thereby reducing their overall tax burden.
Who Might Suffer?
The primary entity negatively impacted is the State of Arkansas, as the implementation of this tax credit will result in a decrease in state tax revenue. Consequently, this could reduce the funds available for other public services, infrastructure, or state-funded programs, or require budget adjustments elsewhere to compensate for the loss of tax income.
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