everything you want to know (and don't) about arkansas politics

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Taxes & Budget

SB256

To Amend The Arkansas Corporate Franchise Tax Act Of 1979; And To Reduce The Minimum Franchise Tax For Certain Corporations.

Failed

Last Action (May 5, 2025): Died in Senate Committee at Sine Die adjournment.

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AI-Generated Summary

Senate Bill 256 proposes an amendment to the Arkansas Corporate Franchise Tax Act of 1979. The bill specifically seeks to reduce the minimum annual franchise tax paid by certain corporations. Under current law, the minimum annual tax is $150. The proposed legislation would lower this minimum payment requirement to $100. This change is scheduled to take effect for tax years beginning on or after January 1, 2026.

Potential Impact Analysis

Who Might Benefit?

The primary beneficiaries of this bill are corporations operating in Arkansas that are subject to the minimum franchise tax, as they would see a reduction in their annual state tax liability.

Who Might Suffer?

The primary entity negatively impacted by this bill is the State of Arkansas, which would experience a reduction in annual tax revenue collected from corporations subject to the minimum franchise tax.

Read Full Bill on arkleg.state.ar.us