Revenue & Tax - Senate

Senate better and they all. Hello the Bill the the same way. Earlier we had included up to one thousand acres at the suggestion of the committee we went back we look to that and now this bill says the veterans the disabled veterans home in up to forty acres as long as it's not used for any type of commercial use we make a profit off of it. In with that I'll stand by a few questions. The. Review. For or against the bill. Seeing none I would entertain a motion. Second. All right all those in favor yeah hi any opposed. Congratulations. Senator Kroll for SB two fifty two. You're recognized to present your bill senator Kroll District three the simple clean up bill to make sales and use tax exemption for research machinery and equipment for the retreading of tires Make it consistent this means it just kind of does what it does it cleans it up and puts it in there that way we've got everything simple. Any questions from the committee. Is there anyone in the audience that would like to speak for or against the bill. It's not your motion to pass. All those in favor let me know but I I any opposed congratulations. Now I'm gonna ask. Senator Dismang to come in the Senate this. Chair table. For S. B.. Three thirteen. Mr I just recognize yourself for the Committee near welcome to president Senate bill three thirteen thank you Mr this bill we brought before you earlier and we were waiting on a a fiscal impact statement that has come in and it's a minimal amount of about sixty six thousand dollars as a refresher what this bill does there was a provision in our tax code that basically says if someone receives military benefits or other retirement benefits they get a six thousand dollar exclusion however you can't get both and so what was happening was there was a military individual that might have started their retirement benefits military retirement benefits and they were not able to get the full exclusion because they were limited to one or the other the three thousand limit or whatever the the lesser amount was. All right thank you members of her explanation bill having questions. Hi Sir pay you're recognized for a question I guess my question is of the chair because I thought we weren't going to hear any bills with the revenue impact at this point I realize this is very low revenue impact but what is the threshold to I think it was at I think it's a question of intent having is it was originally filed written in past previous I think it was the understanding that this was the way that it was going to be a body if they can speak to the revenue impact on the sixty six thousand dollars but man I would be shocked if we didn't already included in our calculations but again if you like to make a comment we can recognize DFA and they can to address. That probably better than I. But appreciate the. Question. It is recognized for the committee and if you committee to restate your questions Senator Pitsch thank you Paul guarantee essay so is there a difference between this and other bills that whatever revenue impact was so and so when this bill was it was presented in the last General Assembly two thousand twenty one it did not get approved the twenty twenty one session but we didn't think that this is a very important bill to try to bring back for the committee we did have the approval of the prior administration as well as the support of the current administration for this revenue impact for this bill it does have a a nominal revenue impact but there is sixty six thousand to give a little history in the two thousand seventeen session is when the General Assembly provided a full exemption for military and survivor benefits but the this code section that is being amended this bill it continue to retain this provision that said that you could not take the full military retirement exemption but also it exempt your non military retirement exemption that bill back in two thousand seventeen had a revenue impact if I remember correctly about thirteen million dollars and to general revenue to exempt military retirement exemption but once that bill went into effect every year as decent former members of the military or their or their survivors were filing their income tax returns in Arkansas they were seeing will wait a second I'm I'm I can't get the full benefit of the thanks and I direct your call sure my question is basically more procedural or housekeeping where your call it I understand the intent of the bill and I support the intent of this bill But I guess the difference that I'm here in the short answer is it's budgeted it's already part of the. But I think it's sixty six thousand dollars. and yes we we have held bills with you know small revenue impacts I think the difference when this one and those with this is truly more of a clean up and it is a change in our policy okay when right I mean in my opinion we're not really changed it's a policy change there is revenue impact but that's well I think you know I just a misunderstood concepts like the way over what rules we're under here thank you and we are I mean I don't think Senator Petty would object to passing over the bill we can take it up in the full context we get a little bit later I'm not necessary I appreciate it right. I did have any further I would say that that we in two thousand seventeen when we drafted the military term exemption bill we work on that with the General Assembly we did not anticipate that there with this issue would have resulted but if in fact it actually has created an issue for about seven to eight hundred filers every single year that called the FAA and and when they're trying to file their returns and they notice that you have a six thousand dollar exemption for non military retirement and that you can't combine your military retirement and your non military retirement to get to that six thousand dollar threshold so this was clearly something that was unanticipated but we're trying to fix this so this rule no longer be a problem for those former members of the military and their survivors okay. With any other questions. All right seeing none with anyone are you. Sending an into anyone like to speak for against the bill and we we have anyone signed up all right seeing none and then with that you are welcome to close for your bill I am close to a motion to pass all right members would have amendment motion we've got a second any discussion signals a favor signify by saying aye All opposed motion carries. Okay. Having no other business before the committee we stand adjourned.