HB1203
To Protect Arkansas Taxpayers From A Tax To Collect Taxes.
Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
House Bill 1203 proposes an amendment to Arkansas Code § 26-52-203 to eliminate the current $50.00 nonrefundable fee required for obtaining a new Arkansas gross receipts tax permit. The bill mandates that the Secretary of the Department of Finance and Administration shall no longer require this fee as a condition for issuing such permits. While the legislation removes the application fee, it maintains existing requirements for non-domiciled retail businesses to provide a cash deposit or bond to cover annual sales tax. The stated purpose of the bill, as described in the subtitle, is to prevent the state from charging taxpayers a fee for the act of collecting sales taxes on behalf of the state. The bill does not alter other existing administrative procedures for tax permits.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill are individuals and businesses seeking to open a new retail business in Arkansas that is subject to gross receipts tax. These entities would benefit by being relieved of the $50.00 application fee previously required to obtain a state sales tax permit.
Who Might Suffer?
The primary entity negatively impacted is the State of Arkansas, specifically the Revenue Division of the Department of Finance and Administration, which will experience a reduction in state revenue as a result of the elimination of the $50.00 application fee. This may necessitate adjustments to the budget of the State Central Services Fund, which previously received these collections.
Get Notified
Receive an email when this bill's status changes.