HB1450
To Amend The Additional Penalties Provided For Failure To Comply With State Tax Procedure; And To Repeal The Additional Penalty For Failing To Make Required Quarterly Estimated Income Tax Payments.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
Sponsors
AI-Generated Summary
House Bill 1450 proposes to amend Arkansas tax law by repealing the specific 10% annual penalty imposed on taxpayers for failing to make required quarterly estimated income tax payments. The bill eliminates the statutory language detailing how this penalty is calculated, as well as the various exceptions to the penalty, such as those for farmers, retirees, or individuals with low tax liability. Additionally, the bill makes conforming updates to laws governing business entities to reflect the removal of these specific penalties. The changes are intended to take effect for tax years beginning on or after January 1, 2023.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are Arkansas taxpayers, including both individuals and business entities, who would no longer be subject to the 10% per annum penalty for underestimating or failing to make timely quarterly estimated income tax payments.
Who Might Suffer?
The state government of Arkansas is the primary entity negatively impacted, as the repeal of this penalty mechanism removes a tool used to incentivize timely tax compliance and reduces potential state revenue collected through these specific penalty assessments.
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