Revenue & Tax - Senate

Is S. B. for seventy six center displaying you want to present that. I'm sorry four seventy eight. Okay. With ours And. That's all right. Members Emily this up you want to hear this today but essentially I noticed programs tax credit goes through these all have to be approved by EDC and they have to prove out that there is no revenue impact of the state this doesn't exist right now would be completely new but again I understand it's going to take time look at it it's a little more complicated than the others right I think that's probably a good idea our intention is that everyone of that will have a Revenue and Tax meeting Monday morning at ten o'clock of back in the old Supreme Court building so we'll just put that one on the agenda for the in. And the next one you're going to have Senator Dismang is going to be S. B. for sixty one. All right Senate bill four sixty one does not have a revenue impact at all it does is simply change the way in which you're allowed to apply for credits it's really geared towards helping smaller towns Pollack will communities be able to participate in the program or maybe there's not as big of an economic advantage for developers to come in and do it but essentially forty percent of your qualified expenses would at in a town of or under ten thousand would qualify for the credit these are refundable credits and they are sellable I will do want to say that at if you're between ten thousand and fifty thousand thirty five percent would this call for qualified expenses would qualify and then if you're population of about fifty thousand to thirty percent there is a cap on this program it's a million dollars were not adjusting the cap we're just changing the parameters And trying to better the policy for the program in the end of the benefit is to smaller towns. Okay. Members do you have any questions in regards to this. Caps currently in place you said. The. Well go ahead I'm sorry. Give me a minute. My only question is have we been hit the cap I mean I can see if we've been hit the cap then that be why be revenue neutral so we already escalated eight million dollars from because there was a fiscal impact we first filed the bill and so we excluded that from our forecast which means there is no revenue impact I think they're about seven down I think it's six point five seven million dollars reclaimed and that's ongoing at this point but yeah I mean we get close to the cap. Okay thank you. You're gonna have some others there there the same way with this cap that was kind of the explanation we had the yesterday on the so some of these you basically if we if it's previously been employees we have the cap again the forecast was a. RT quoted that. Okay any other questions. Any for anybody from the audience will speak for against this bill. Senate dismaying closed closed. What will the committee. Senator Payton is a moose do pass center Kroll is second all in favor say aye. You pose. That's passed the next one Senator is going to be S. B. for sixty two that is in. Yes again there's no revenue impact of this is actually just is ending the program out from twenty twenty five to twenty thirty. So it's just a date change. Any questions from members on this. Anyone from the audience will speak for against the date change. You clothes senator and closed. Do pass by Senator crow. Second by Senator days all in favor say aye. You pose that cared that passes. The next one is going to be C. S. B. four eighty two all right Senate bill four eighty two just provides clarity there was conflict when existing rules in the in the bill that we pass on apportionment in that again let the confusion between the different River Road entities on what to do at this just allows for railroads to be able to choose on abortion method methods and those are the three factor apportionment or single sales factor apportionment there is no revenue back because they're already out to do this essentially the problem was they were going to promulgate a new rule India famous of doing that we're going to pass the bill and it kinda speed things up because as you know there's a halt on new rules in trade I don't know how it all works but this is gonna bring clarity sooner to the industry. Okay. Any questions on this one members. Anyone from the audience will speak for against. The closer closed. Will of the committee our center Payton do you have another question I'll out of. Okay. What will the committee. Senator Payton the move do pass senator Crowe was a second all in favor say aye opposed. But bills passed. Are you running the fifty ninety two yes you're recognized for help House Bill fifteen ninety two. I'm member's house bill fifty nine to two very similar to the store small projects it does not increase the cap that's currently set at million or four million but it does try to improve the policy have for those that are plying I am just. So it's already been excluded from forecast to four million dollars sense so it's going to create different tiers essentially so someone is wanting to come to production the state of Arkansas can receive different incentives based on what they're doing so Frances multiple shooting get you one of those tears and get you to another two year or incentive tier Trimaran I apologize but anyway the the the again ago is just to to to better the policy that's inside of of what we do there does not increase funds there was some for instance discussion about what we want someone here that's longer than a month this is going to create incentive for that type of thing. Okay so there's no negative the fiscal impact on this yeah create increase there is no revenue impact increases the the basics the basin center from twenty percent twenty five percent and adds in an instant whenever the filming takes place in an economic development area as designated by the ADC and then. It also and that's based on hiring employees in state employees and the last is again it's in that multi production of that I just addressed okay there's five percent kickers if you're willing to do that. Any other questions members. Senator Payton. I do Sir I'm sorry to new system. All right thank you Mr so correct me if I'm wrong is this a tax incentive for out of state companies and and non Arkansas citizens yes it's trying to get them to spend their dollars in our state which is the number one way to create additional revenue is for an economy and state my opinion well I don't know if it be number one I agree with you it does out of and it's what I mean that those or economic growth but basically were asking the citizens of Arkansas. To to pay taxes on a lot of cases while offering an incentive to an out of state corporation or not a state entity or or person of. Did you say the cap was four million four million okay how much of that we've been use that that all has right now been utilized through eight rebates I think it's been about eight million dollars in remakes similar program That my understanding is going to be going away and that was one of recess thought it was so important change the policy on this. You know something didn't add up there there is reason for that was getting funded through ADC so essentially someone come I can apply to work very similar to this and so they were use a lot utilizing the rebate program even though we have this on the books of four million dollars so clearly more people are now going to be utilizing the credit program three pay program goes away and I think more the reason make sure we have the right policy in place. Okay thank you thank you Mr. Any other questions. Senator days you're recognized her. My fault. I used to the other committee room. Thank you senator just for clarification it is not only. Affecting out of state companies. You know that we yeah but for the most part in a motor listicle it yes it's designed to bring out of state but it but in state production are absolutely able to fly apart that's exactly right thank you for. You clothes senator I'm closed. So will of the committee. motion do pass by Senator duties. Discussion on the motion. I guess so you. Thank you Mr chair of the I understand I love tax cuts all of tax credits on the tax incentives a lot of economic development development we have to prioritize things and this is not at the top of my priority list and I think of all we have Bills waiting that grant tax relief to our Kansans I'm will be vote no and I'd encourage my colleagues to. One thing I've asked the members to keep in mind is you can vote no today and you don't change the policy but the tax credit still stays there and so if you want to improve the policy that's what I'm trying to do and so if we think that we want multi production folks becoming in state of Arkansas participating in change the policy but you're not going to be changing a four thousand four million dollar credit by voting no it will still exist we'll just have a policy that is not as good as it should be so that mean that I understand your point but I don't think it's going to T. the result that you're looking for. You won't be recognized center Payton. I want to make sure you're well you're recognized I appreciate you making that point which you to made in the beginning I think I vote yes thank you. Ellen and I made another mistake is there anybody here from the audience wants to speak for against this. I appreciate your. All right and so we have we we we do have a motion by Senator days do I have a second I have a six by Senator Payton all in favor say aye. Any opposed. Good conversation. Okay is opposite is right it's representive the field here. House Bill fifteen ninety four. Senator is Senator Flippo the. DO you wanna run that I mean it's. The case Senate this man you're gonna be recognized run house bill fifteen ninety four well this bill very very clearly Exempts the gross receipts gross proceeds derived from the sale of tangible personal property specified digital projects digital code for service. Of the disabled American veterans organization is about a thousand dollar revenue impact. Anybody have any questions on that one. Anyone from the audience will speak for against that. Senate is mayor you closer always somebody will speak. okay. Get you closer. Okay haven't but he's close we have a motion by Senator crow we have a second by Senator days all in favor say aye opposed. Anything else from the Committee or jarred.