HB1491
To Require The Department Of Finance And Administration To Adopt Rules Before Assessing Or Collecting Certain Taxes.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
Sponsors
AI-Generated Summary
House Bill 1491 restricts the Arkansas Department of Finance and Administration's ability to begin taxing items or services that it has not previously taxed. The bill mandates that the Department cannot assess or collect a new tax unless there has been a specific change in statutory law authorizing it. In instances where the Department determines an existing law already allows for such a tax, it must first promulgate a rule under the Administrative Procedure Act. This new rule is then subject to the formal approval of the Legislative Council or the Joint Budget Committee. The Department is prohibited from collecting the tax until that legislative body has approved the rule. The legislation aims to increase legislative oversight of administrative tax policy and implementation.
Potential Impact Analysis
Who Might Benefit?
Businesses, taxpayers, and service providers are the primary beneficiaries of this bill. By requiring legislative oversight for new tax interpretations, these entities gain protection against sudden, administratively driven changes in tax liability that could impact their operational costs or compliance requirements without explicit legislative action.
Who Might Suffer?
The Department of Finance and Administration is the entity most negatively impacted, as the bill constrains its administrative discretion and introduces a more rigorous, time-consuming procedural process for enforcing tax laws. Additionally, the state government may experience negative impacts in terms of reduced administrative agility, potential delays in revenue collection, and increased legislative administrative burdens.
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