HB1971
To Amend The Requirements Concerning The Information That Shall Be Provided To A City Or County By The Department Of Finance And Administration.
Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
House Bill 1971 amends the Arkansas Tax Procedure Act to modify the process by which cities and counties request lists of sales tax permit holders from the Department of Finance and Administration (DFA). The bill updates submission requirements, mandating that requests be made electronically and specifying that lists will be compiled based on permit holders registered as of September 1st of the request year. It clarifies that the DFA must provide a vendor list, including names and North American Industry Classification System (NAICS) codes, and mandates electronic delivery of these reports. The bill also establishes that the DFA may charge a reasonable fee for these reports to cover administrative costs, with proceeds deposited into the State Central Services Fund. To facilitate this process, requesting local governments must register for an account with the Arkansas Taxpayer Access Point. Finally, the bill maintains confidentiality requirements for the provided information and prohibits the DFA from discussing report details with the requesting entity or third parties.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are municipal and county governments in Arkansas, which will gain a clearer, modernized electronic process for accessing sales tax permit holder data. This information can assist local officials in tax administration, economic planning, and ensuring tax compliance within their jurisdictions.
Who Might Suffer?
The primary group potentially negatively impacted is the Department of Finance and Administration, which will incur additional administrative burdens and operational requirements to manage the electronic requests and report generation. While the bill allows for a fee to cover these costs, the responsibility of compiling and delivering this data periodically adds a permanent procedural requirement to their department. Additionally, individual businesses may have concerns regarding the expanded formalization of sharing their tax registration data with local government entities.
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