Revenue & Tax - Senate
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Transcript
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Bills discussed (35)
| Bill | Title | Sponsor | Status |
|---|---|---|---|
|
HB1085
Act 802
· 7 mentions in transcript, chapter, agenda
Matched: “…that we're gonna hear is going to be Let me rephrase that. House Bill 1085. This one does have a physical impact and it is on our, uh,…”
|
TO ADOPT FEDERAL LAW CONCERNING TAX-DEFERRED TUITION SAVINGS PROGRAMS; AND TO AMEND THE INCOME TAX … | K. Brown | Notification that HB1085 is now Act 802 |
|
HB1491
Act 874
· 6 mentions in agenda, transcript, chapter
Matched: “…FROM A COUNTY SALES AND USE TAXES FOR CAPITAL IMPROVEMENTS. HB1491 Wardlaw CONCERNING THE EXCISE TAX ON CERTAIN BEER AND SAKE;…”
|
CONCERNING THE EXCISE TAX ON CERTAIN BEER AND SAKE; TO CREATE AN EXCISE TAX CREDIT … | Wardlaw | Notification that HB1491 is now Act 874 |
|
HB1807
Act 879
· 5 mentions in agenda, chapter, transcript
Matched: “…SAKE PRODUCED USING ARKANSAS RICE; AND FOR OTHER PURPOSES. HB1807 Eaves TO AMEND THE SALES TAX EXEMPTION FOR AIRCRAFT HELD FO…”
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TO AMEND THE SALES TAX EXEMPTION FOR AIRCRAFT HELD FOR RESALE AND USED FOR RENTAL … | Eaves | Notification that HB1807 is now Act 879 |
|
HB1894
Act 842
· 5 mentions in agenda, transcript, chapter
Matched: “…SALES AND USE TAXES ON CERTAIN TANGIBLE PERSONAL PROPERTY. HB1894 Beaty Jr. TO ESTABLISH A METHOD OF VALUATION FOR REAL PROPE…”
|
TO ESTABLISH A METHOD OF VALUATION FOR REAL PROPERTY USED FOR AFFORDABLE HOUSING; AND TO … | Beaty Jr. | Notification that HB1894 is now Act 842 |
|
HB1063
Act 875
· 4 mentions in agenda, chapter, transcript
Matched: “…TAX DEDUCTION ALLOWED FOR A TEACHER'S CLASSROOM INVESTMENT. HB1063 J. Mayberry TO AMEND THE ACHIEVING A BETTER LIFE EXPERIENCE…”
|
TO AMEND THE ACHIEVING A BETTER LIFE EXPERIENCE PROGRAM ACT; AND TO AMEND THE DEFINITIONS … | J. Mayberry | Notification that HB1063 is now Act 875 |
|
HB1732
Act 878
· 4 mentions in chapter, transcript, agenda
Matched: “HB1732 Vaught TO INCREASE THE AMOUNT OF THE INCOME TAX DEDUCTION A…”
|
TO INCREASE THE AMOUNT OF THE INCOME TAX DEDUCTION ALLOWED FOR A TEACHER'S CLASSROOM INVESTMENT. | Vaught | Notification that HB1732 is now Act 878 |
|
HB1935
Act 882
· 3 mentions in chapter, agenda, transcript
Matched: “HB1935 TO CREATE A MODERNIZATION AND AUTOMATION TAX CREDIT TO ENCO…”
|
TO CREATE A MODERNIZATION AND AUTOMATION TAX CREDIT TO ENCOURAGE INVESTMENT BY EXISTING BUSINESSES WITHIN … | Eaves | Notification that HB1935 is now Act 882 |
|
HB1960
Act 1013
· 2 mentions in agenda, chapter
Matched: “…ELECTRONIC FILING OF CERTAIN CORPORATE INCOME TAX RETURNS. HB1960 Wardlaw TO PROVIDE THAT THE LESSEE OF A LEASED MOTOR VEHICL…”
|
TO PROVIDE THAT THE LESSEE OF A LEASED MOTOR VEHICLE IS THE OWNER FOR PURPOSES … | Stone | Notification that HB1960 is now Act 1013 |
|
HB1485
· 1 mention in agenda
Matched: “…O CHANGE DISABILITY ONSET AGE FROM TWENTY-SIX TO FORTY-SIX. HB1485 K. Brown TO CREATE A SALES AND USE TAX EXEMPTION FOR SALES…”
|
TO CREATE A SALES AND USE TAX EXEMPTION FOR SALES TO CERTAIN ORGANIZATIONS THAT SUPPORT … | K. Brown | Died in Senate Committee at Sine Die adjournment. |
|
HB1534
· 1 mention in agenda
Matched: “…USED IN RELATION TO A PROJECT FOR A YOUTH FARMING PROGRAM. HB1534 Schulz TO INCREASE THE HOMESTEAD PROPERTY TAX CREDIT. SB377…”
|
TO INCREASE THE HOMESTEAD PROPERTY TAX CREDIT. | Schulz | Died in Senate Committee at Sine Die adjournment. |
|
HB1685
Act 1008
· 1 mention in agenda
Matched: “…TO CERTAIN ORGANIZATIONS THAT SUPPORT VETERANS' FACILITIES. HB1685 Underwood TO CREATE THE GROCERY TAX RELIEF ACT; TO AMEND TH…”
|
TO CREATE THE GROCERY TAX RELIEF ACT; TO AMEND THE LAW CONCERNING THE SALES AND … | Underwood | Notification that HB1685 is now Act 1008 |
|
SB131
· 1 mention in agenda
Matched: “…X REPORT FROM THE DEPARTMENT OF FINANCE AND ADMINISTRATION. SB131 J. Bryant TO CONFIRM THE LAW RELATED TO THE ASSESSMENT OF A…”
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TO CONFIRM THE LAW RELATED TO THE ASSESSMENT OF A HOMESTEAD BELONGING TO A PERSON … | J. Bryant | Died in Senate Committee at Sine Die adjournment. |
|
SB204
· 1 mention in agenda
Matched: “…R FUTURE FUND PLAN TO A ROTH INDIVIDUAL RETIREMENT ACCOUNT. SB204 C. Penzo TO EXEMPT FROM GROSS INCOME A GAIN BY A TAXPAYER R…”
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TO EXEMPT FROM GROSS INCOME A GAIN BY A TAXPAYER RESULTING FROM THE ACQUISITION OF … | C. Penzo | Died in Senate Committee at Sine Die adjournment. |
|
SB233
· 1 mention in agenda
Matched: “…THE RIGHT OF EMINENT DOMAIN OR THE THREAT OF CONDEMNATION. SB233 C. Penzo TO AMEND THE INCOME TAX LAWS RELATING TO CERTAIN T…”
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TO AMEND THE INCOME TAX LAWS RELATING TO CERTAIN TRUSTS; TO PRESERVE CERTAIN TRUST ASSETS; … | C. Penzo | Died in Senate Committee at Sine Die adjournment. |
|
SB256
· 1 mention in agenda
Matched: “…TRUST ASSETS; AND TO EXEMPT CERTAIN TRUSTS FROM INCOME TAX. SB256 J. Dotson TO AMEND THE ARKANSAS CORPORATE FRANCHISE TAX ACT…”
|
TO AMEND THE ARKANSAS CORPORATE FRANCHISE TAX ACT OF 1979; AND TO REDUCE THE MINIMUM … | J. Dotson | Died in Senate Committee at Sine Die adjournment. |
|
SB268
· 1 mention in agenda
Matched: “…REDUCE THE MINIMUM FRANCHISE TAX FOR CERTAIN CORPORATIONS. SB268 D. Wallace TO TRANSFER GENERAL REVENUE TO THE AGING AND ADU…”
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TO TRANSFER GENERAL REVENUE TO THE AGING AND ADULT SERVICES FUND ACCOUNT TO BE USED … | D. Wallace | Died in Senate Committee at Sine Die adjournment. |
|
SB274
· 1 mention in agenda
Matched: “…estrictions designating areas as 'Members and Staff Only'. SB274 D. Wallace TO CREATE A SALES AND USE TAX EXEMPTION FOR CERT…”
|
TO CREATE A SALES AND USE TAX EXEMPTION FOR CERTAIN ITEMS RELATED TO HUMAN BURIAL; … | D. Wallace | Died in Senate Committee at Sine Die adjournment. |
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SB289
· 1 mention in agenda
Matched: “…A CASKET, BURIAL VAULT, OR MONUMENT FROM SALES AND USE TAX. SB289 J. Dotson TO CUT THE STATEWIDE SALES TAX RATE BY ONE-EIGHTH…”
|
TO CUT THE STATEWIDE SALES TAX RATE BY ONE-EIGHTH PERCENT TO REDUCE THE SURPLUS FUNDS … | J. Dotson | Died in Senate Committee at Sine Die adjournment. |
|
SB310
· 1 mention in agenda
Matched: “…REDUCE THE SURPLUS FUNDS COLLECTED FROM ARKANSAS TAXPAYERS. SB310 B. King TO ENABLE THE COMMISSIONER OF STATE LANDS TO CONDUC…”
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TO ENABLE THE COMMISSIONER OF STATE LANDS TO CONDUCT CERTAIN BUSINESS ONLINE; AND TO AMEND … | B. King | Died in Senate Committee at Sine Die adjournment. |
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SB316
· 1 mention in agenda
Matched: “…NER OF STATE LANDS MUST FOLLOW IN SELLING CERTAIN PROPERTY. SB316 B. Johnson TO AMEND THE SALES AND USE TAX LAWS CONCERNING R…”
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TO AMEND THE SALES AND USE TAX LAWS CONCERNING REBATES; AND TO REQUIRE THAT SALES … | B. Johnson | Died in Senate Committee at Sine Die adjournment. |
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SB318
· 1 mention in agenda
Matched: “…THAT SALES AND USE TAX REBATES BE ADMINISTERED AS REFUNDS. SB318 F. Love TO CREATE AN INCOME TAX EXEMPTION FOR CERTAIN INDIV…”
|
TO CREATE AN INCOME TAX EXEMPTION FOR CERTAIN INDIVIDUALS BASED ON INCOME AND AGE. | F. Love | Died in Senate Committee at Sine Die adjournment. |
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SB338
· 1 mention in agenda
Matched: “…EXEMPTION FOR CERTAIN INDIVIDUALS BASED ON INCOME AND AGE. SB338 Hill TO PROVIDE SALES AND USE TAX EXEMPTIONS FOR STUDENT FA…”
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TO PROVIDE SALES AND USE TAX EXEMPTIONS FOR STUDENT FARMERS; AND TO PROVIDE SALES AND … | Hill | Died in Senate Committee at Sine Die adjournment. |
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SB377
· 1 mention in agenda
Matched: “…B1534 Schulz TO INCREASE THE HOMESTEAD PROPERTY TAX CREDIT. SB377 Hester TO CREATE THE GROCERY TAX RELIEF ACT; TO AMEND THE L…”
|
TO CREATE THE GROCERY TAX RELIEF ACT; TO AMEND THE LAW CONCERNING THE SALES AND … | Hester | Died in Senate Committee at Sine Die adjournment. |
|
SB394
· 1 mention in agenda
Matched: “…A DISABILITY OR A PERSON SIXTY-FIVE YEARS OF AGE OR OLDER. SB394 J. Bryant TO AMEND THE LAW CONCERNING THE ALLOCATION, DISTR…”
|
TO AMEND THE LAW CONCERNING THE ALLOCATION, DISTRIBUTION, AND USE OF REVENUES DERIVED FROM A … | J. Bryant | Died in Senate Committee at Sine Die adjournment. |
|
SB419
· 1 mention in agenda
Matched: “…58; AND TO EXEMPT GROCERIES FROM STATE SALES AND USE TAXES. SB419 G. Leding TO CREATE A SALES AND USE TAX EXEMPTION FOR CERTA…”
|
TO CREATE A SALES AND USE TAX EXEMPTION FOR CERTAIN SALES TO A CULTIVATION FACILITY. | G. Leding | Sine Die adjournment |
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SB423
· 1 mention in agenda
Matched: “…TAX EXEMPTION FOR CERTAIN SALES TO A CULTIVATION FACILITY. SB423 J. Scott TO EXEMPT FROM THE INDIVIDUAL INCOME TAX EDUCATION…”
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TO EXEMPT FROM THE INDIVIDUAL INCOME TAX EDUCATION SCHOLARSHIPS, AWARDS, AND GRANTS FROM NONPROFIT VOLUNTEER … | J. Scott | Died in Senate Committee at Sine Die adjournment. |
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SB465
· 1 mention in agenda
Matched: “…AND GRANTS FROM NONPROFIT VOLUNTEER SERVICE ORGANIZATIONS. SB465 B. Davis TO PROVIDE FOR A SALES AND USE TAX REFUND FOR A SP…”
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TO PROVIDE FOR A SALES AND USE TAX REFUND FOR A SPECULATIVE DEVELOPMENT PROJECT; AND … | B. Davis | Died in Senate Committee at Sine Die adjournment. |
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SB502
· 1 mention in agenda
Matched: “…DISPOSABLE VAPOR PRODUCTS FROM A PROHIBITED FOREIGN PARTY. SB502 Crowell TO AMEND THE ARKANSAS INCOME TAX WITHHOLDING ACT OF…”
|
TO AMEND THE ARKANSAS INCOME TAX WITHHOLDING ACT OF 1965; AND TO REQUIRE THE ELECTRONIC … | Crowell | Died in Senate Committee at Sine Die adjournment. |
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SB526
· 1 mention in agenda
Matched: “…COURAGE INVESTMENT BY EXISTING BUSINESSES WITHIN THE STATE. SB526 Irvin TO PROHIBIT THE SALE OF DISPOSABLE VAPOR PRODUCTS FRO…”
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TO PROHIBIT THE SALE OF DISPOSABLE VAPOR PRODUCTS FROM A PROHIBITED FOREIGN PARTY. | Irvin | Died in Senate Committee at Sine Die adjournment. |
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SB558
· 1 mention in agenda
Matched: “…58; AND TO EXEMPT GROCERIES FROM STATE SALES AND USE TAXES. SB558 Crowell TO REQUIRE THE ELECTRONIC FILING OF CERTAIN CORPORA…”
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TO REQUIRE THE ELECTRONIC FILING OF CERTAIN CORPORATE INCOME TAX RETURNS. | Crowell | Died in Senate Committee at Sine Die adjournment. |
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SB57
· 1 mention in agenda
Matched: “…A MOTORBOAT DEALER. DEFERRED BILLS Number Sponsor Subtitle SB57 C. Tucker TO AMEND THE INCOME TAX CREDIT FOR CERTAIN INDIVI…”
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TO AMEND THE INCOME TAX CREDIT FOR CERTAIN INDIVIDUAL POLITICAL CONTRIBUTIONS; AND TO AMEND A … | C. Tucker | Died in Senate Committee at Sine Die adjournment. |
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SB638
Act 1019
· 1 mention in agenda
Matched: “…dwell Sen. Jim Petty REGULAR AGENDA Number Sponsor Subtitle SB638 J. Boyd TO AMEND THE LAW CONCERNING THE COLLECTION OF SALES…”
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TO AMEND THE LAW CONCERNING THE COLLECTION OF SALES AND USE TAX ON THE SALE … | J. Boyd | Notification that SB638 is now Act 1019 |
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SB7
· 1 mention in agenda
Matched: “…VE AGREEMENTS UNDER THE CONSOLIDATED INCENTIVE ACT OF 2003. SB7 C. Penzo TO ALLOW MEMBERS OF THE GENERAL ASSEMBLY TO REQUES…”
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TO ALLOW MEMBERS OF THE GENERAL ASSEMBLY TO REQUEST A SALES AND USE TAX REPORT … | C. Penzo | Died in Senate Committee at Sine Die adjournment. |
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SB73
· 1 mention in agenda
Matched: “…E ARKANSAS CODE THAT RESULTED FROM INITIATED ACT 1 OF 1996. SB73 B. Johnson TO CREATE THE ACCESS TO CREDIT FOR OUR RURAL ECO…”
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TO CREATE THE ACCESS TO CREDIT FOR OUR RURAL ECONOMY (ACRE) ACT; AND TO PROVIDE … | B. Johnson | Died in Senate Committee at Sine Die adjournment. |
|
SB82
· 1 mention in agenda
Matched: “…IDE AN INCOME TAX DEDUCTION FOR CERTAIN AGRICULTURAL LOANS. SB82 J. Payton TO INCREASE THE SALES AND USE TAX EXEMPTION FOR U…”
|
TO INCREASE THE SALES AND USE TAX EXEMPTION FOR USED MOTOR VEHICLES; AND TO AMEND … | J. Payton | Died in Senate Committee at Sine Die adjournment. |
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Senator Jimmy Hickey, Jr
Unverified
0:09
that for public viewing. Um, so the first bill that we're going to be doing here or we're back from recess. The next bill we're gonna be doing is House Bill 1491 members. OK.
Chair (Senator Jimmy Hickey, Jr)
Unverified
0:23
Senator Wardlaw, if you'd just, uh, introduce yourself and you're recognized to present your bill. I appreciate the promotion, but I'm just a representative. Representative Jeff Welaug Wardlaw, excuse me.
Representative Jeff Wardlaw
Unverified
0:34
District 94. I've, I've never. had the ability to understand the esteem level that the Senate's on your bill, sir.
Remember, uh members house Bill 1491. is a bill that, uh, That's near and dear to me, and here's why. Um I worked full disclosure in the waterfowl world with Delta waterfowl. We have no ties to USA Rice or Arkansas rice like Ducks Unlimited does. But one thing that I've learned Is it in Texas? They had a huge fall off in their rice production. And then they lost their migration. Louisiana has lost 80% of its rice production.
And they're losing their migration. Arkansas stands a chance to lose ours in the current markets. If you look at the prices of rice right now and you look at what's going into the fields, is corn. And the reason it's corn is because the rice markets falling to almost $5.80 and the break even for a farmer at $7.80. But we have something unique in Arkansas that holds our rice production where it's at today. And that is the ability to sell our rice to the brewery market. 80% of Arkansas rice goes to the brewery market.
This bill, if, if it was another customer, it'd be a, it'd be about a different customer. It's just that is our customer for Arkansas rice. So in order to keep that customer in order to put incentives to keep that customer. That's where this bill comes from. And there's other breweries in the world that don't use rice and we would love to incentivize them to use rice because it works very well. And the way we crafted this bill is we didn't want this tax credit to go outside the state. So we, we fixed this bill and crafted this bill with a tax incentive stays in the state with the
wholesalers of the beer or of the sai or sake are the hometown breweries like Lost 40. So that those guys are where that tax credit stays. So the money stays in the state, that way those wholesalers are advocating for their Manufacturers to use our rice as an ingredient because it gives them a small tax credit, and it is a very small tax credit. Most of these entities were the most they'll get is a 22% tax credit of that particular item. The, um,
costs assessments came up numerous times. I've talked to All of the, uh, players in the game at the moment that I know of. I want to be clear about that, that I know of, uh, the in-state breweries in Nasaki is roughly about $40,000 impact. Talk to the Anheuser-Busch ingredients guys, they tell me that, that It varies, their sales actually vary a pretty good bit in Arkansas, but it comes in anywhere from $900,000 to a
million dollars, if you look back over the last 10 years of sales. So you're looking at roughly a million dollars a year in tax credits through incentivizing one of our number one crops and what we're known for all over the world, and that's Arkansas rice. With that, Mr. Chair, I'll be glad to take any questions. Are there any questions Representative Wardlaw
Senator Jimmy Hickey, Jr
Unverified
3:40
from the members. OK. Is there anybody, uh, in
Chair (Senator Jimmy Hickey, Jr)
Unverified
3:46
the audience wants to speak for this bill. Anyone want to speak against this bill.
Speaker 12
3:54
Oh, OK. Well, we'll go back to a question, Senator Hammer. I just want to clarify, I think I'd heard it previous,
Speaker 13
4:00
but revenue neutral. Or what's what it's about a million dollars impact. It's made an impact. OK, thanks. OK, right.
Chair (Senator Jimmy Hickey, Jr)
Unverified
4:08
I don't see any other questions or anyone from the audience wants to speak for
Senator Jimmy Hickey, Jr
Unverified
4:13
or against. Are you close Senator Wardla? Yes, sir. OK. Do, do I have a motion? I have a motion for Senator Crow, I have a motion from Senator
Boyd. Any discussion on the motion? All All in favor say aye. Any oppose? Congratulations, Representative Bola. Thank you, Mr. Chair. Yes, sir. All right. So at this point, um, OK, we've done 1491. The next one that we're gonna hear is going to be Let me rephrase that. House Bill 1085. This one does have a physical impact and it is on our, uh, deferred list. So without objection, I'm gonna pull that off the deferred list.
Do I have an objection to pull it off? OK, seeing none. Representative Brown, if you want to come to the end of the table. And again, members, it's gonna be House Bill 1085. Give me just, just give, give it, give us just a second.
Speaker 20
5:35
Give me a second. I'm having trouble finding it 1085. 1085. And Right Any other members not have it.
Speaker 26
5:58
I think I have it, but I can look it up on my phone. All right, I, I found it in mind. ports.
Senator Jimmy Hickey, Jr
Unverified
6:06
back Everybody else has got it pulled, either, either electronic copy or a hard copy. Everybody's
Chair (Senator Jimmy Hickey, Jr)
Unverified
6:22
got that. OK. Uh, if you would, uh, just, uh, introduce yourself and then you'll be recognized to
Representative Matt Brown
Unverified
6:30
present your bill. Representative Carolyn Brown District 67, which is predominantly North Pulaski. Um,
I'm here to present House Bell at 1085. It is to bring our, um, Uh, Arkansas 529 plan, which we call the Arkansas Brighter Future Plan Act, uh, into alignment with the newest federal regulations regarding uh these education savings accounts. The, um, I don't know how much information you want. I don't want to waste your time, uh, but
our, our total assets under management for our 529 plans are $1,431,429 and 400. $429,480. And, um, They, um, qualified withdrawals from, for Um For education expenses in 2023 were almost a million dollars and in 2024, slightly over a million dollars, $102 million. Um
The fiscal impact on, on this, um. Legislation is estimated to be $190,000 and I have a representative here from the treasurer's office, correct me if I'm wrong, but that, that impact. Would be based on. Non-qualified withdrawals, the gain on the non-qualified withdrawals because taxes have already been paid on the money that's invested in these education savings accounts.
So that would be taxes that we would not collect. It's estimate. Anyway, um, what this bill does is it allows a, um, the owner of the account. Designates a beneficiary if that uh if it appears and or determined that that beneficiary is not going to use this money for education. The owner of the account can transfer that into a Roth IRA for that beneficiary,
and there are limitations on how much can be rolled over each year, for a maximum of 35,000. OK. Members,
Senator Jimmy Hickey, Jr
Unverified
8:47
uh, do you have any questions in regards to this bill? I
Chair (Senator Jimmy Hickey, Jr)
Unverified
8:53
think everybody understands what we're doing here, uh, Senator Boyd, do you have one? Maybe I'm just
Senator Justin Boyd
Unverified
8:59
slow. So we've got a 529 account at the state and we're not gonna use it for education. It allows us to roll it over into a Roth IRA, but then we're not going to pay the
state portion of taxes when we roll from the 529 to the Roth IRA. Correct,
Representative Matt Brown
Unverified
9:16
because you're, you're going from one qualified account to another qualified account. Sounds like a lot of incentive for saving.
Speaker 39
9:25
Yes, it does the federal guidelines, is that correct?
Chair (Senator Jimmy Hickey, Jr)
Unverified
9:28
OK, so we're, we're gonna be consistent with the, with the feds on that. OK. And it takes effect. It's effective. January
Representative Matt Brown
Unverified
9:43
1 2024, so people are already filing their taxes and
Senator Jimmy Hickey, Jr
Unverified
9:46
counting on this. Sure, I understand. Any other questions from members? He went from the audience wants to speak for the bill. Anyone want to speak against the bill. Are you closed, aren't you, ma'am. All right. Do we have a motion on this? I have a motion by Senator Boyd, second by Senator Hester. Any discussion on the motion? All in favor say aye. Any oppose? Congratulations, your bill is passed. Yes, thank you. All right, members, that was 1085, uh, the
next one, are you going to present the Mayberry. All right, we're gonna do 1063. And then we're gonna go after that to 1732. So Representative Volt, you just can stick around, we'll get there. OK, so Senator Crow, you're gonna be presenting House Bill 1063. And if you don't mind, members, you got everybody find their
Chair (Senator Jimmy Hickey, Jr)
Unverified
10:34
bill. Senator Kroll District 3. You're recognized, sir.
Senator Steve Crowell
Unverified
10:40
Uh, this is for A accounts, uh, federal
government passed in 2022 and it'll become effect in 2026, so that, uh, people without risking their benefits can, uh, open their AB account in the Abel account, you know, and have money in there so they can use it for the things they need and as a therapy, medical devices, and this is intent to make sure there's no confusion. It's gonna be about a $20,000 hit. OK. Any questions on this? You remember I have a question.
Chair (Senator Jimmy Hickey, Jr)
Unverified
11:16
He went for the audience want to speak for this bill. Anyone want to speak against this bill. You close, Senator Crow. Close and make a motion do pass. Senator Crow
Senator Jimmy Hickey, Jr
Unverified
11:27
was motioned to pass. Senator dismaying his second. Any discussion on the motion. All in favor say aye. Any opposed? That bill is also passed. Senator Representative Volt. OK, on this one, members, we're gonna be hearing House Bill 1732.
Representative DeAnn Vaught
Unverified
11:50
Everybody ready or not? OK. District 87, um, this bill, our teachers are investing more and more into their classrooms. Um, some of that is due to the, the rising cost of stuff that they use, supplies that they use, and some of that is because they try to keep food and water and things like that in their classroom because, you know, evidence shows that a child who is hungry will not learn. They just can't learn when they're hungry. So this bill is just taking the tax
deduction from 500 to 1000. I will say that I've helped a couple of my uh couple of my girls set up their rooms and it's definitely over $1000 but, um, this will be, they'll keep their receipts and they turn them in, uh, with their taxes. Um Stuff at the end of, during tax season. And that's how they get their deduction. OK.
Chair (Senator Jimmy Hickey, Jr)
Unverified
12:39
Any members have any questions in regards to this? Anyone from the audience want to speak for this bill. Anyone want to speak against this bill. You're closed center I mean representative vote. I've been saying that all night.
Representative DeAnn Vaught
Unverified
12:52
Representative vote, OK? You're my senator, so I appreciate that
Chair (Senator Jimmy Hickey, Jr)
Unverified
12:57
and I'm closed. Um, do we have a motion? Of motion of Senator Crow. I have
Senator Jimmy Hickey, Jr
Unverified
13:03
a second by Senator Hammer. Any discussion on the motion? OK, all in favor say aye. Any oppose? Thank you all so much. Congratulations. OK. Next one
is going to be Representative Ease House Bill 1807.
Chair (Senator Jimmy Hickey, Jr)
Unverified
13:24
Mhm OK, if you'll just introduce yourself and your, and you're recognized, begin when
Representative Les D. Eaves
Unverified
13:36
you want. Thank you, Representative Les Eaves, District 58. Uh, members, this is House Bill 1807. Um, it's gonna help give DFNA some clarity on what our intent is. So current Arkansas law allows individuals selling, um, and leasing aircraft, the option of either either paying sales tax when they purchased the
aircraft, or they can pay use tax on the lease income of the aircraft. So this bill will clarify who qualifies for that option and requirements must be met. Um, it does 3 things. It clarifies the long-standing definition of who is in the business of buying and selling an aircraft to include those holding aircraft in inventory for resale or lease, codifies generally accepted minimum lease rate of 7.5% of the acquisition cost of the aircraft, um, and that is uh industry standard, and then it prevents double taxation of the aircraft held for resale or lease, and this is an issue that
has prevented more aircraft from being based in Arkansas. Um, That's what the bill does. I'd be happy to take any questions. OK, any
Chair (Senator Jimmy Hickey, Jr)
Unverified
14:35
questions from members? You want for the want to speak for this one. Anyone want to speak against this one? You close representative close. Thank you. OK, do we have a
Senator Jimmy Hickey, Jr
Unverified
14:46
motion? All right, I have a motion by uh Senator dismaying. I have a second, uh, Senator Boyd any discussion on this motion.
OK. All in favor say aye. Can you oppose? OK, congratulations. That bill is passed. OK, at this point, members, We had some other bills. That were re-referred. One of them is 1960. Senator Stone, uh, without objection, we're going to hear that. Let us, let me make sure I
Chair (Senator Jimmy Hickey, Jr)
Unverified
15:23
can find my copy to that, that particular one.
Senator Jimmy Hickey, Jr
Unverified
15:30
1960 1960. to all the members have what they need on this, OK, if you just uh recognize yourself, Matt Stone
Senator Matt Stone
Unverified
15:41
state Senate District 2, and, uh, if I'm not mistaken, I think there's an amendment on the bill. I don't see it being passed out or anything. It just simply add me as a sponsor. OK, you're, it, it's already owned.
Speaker 63
15:54
It's already engrossed on there. Well, I just, what made me say
Senator Matt Stone
Unverified
15:57
that it's not to copy. I have my name's not on it, so I
Senator Jimmy Hickey, Jr
Unverified
16:01
just wanted to make sure we're good. Is that the only thing the amendment did? Yeah, that is
Senator Matt Stone
Unverified
16:08
correct. Then your bill should be good. You're recognized, sir, this bill was brought to representative Ward Law and myself by a lot of the Ford dealers in our districts and what is going on for way I understand it when they, um, a, uh, LeC makes their payment. The tax, the taxes are included in that payment and what Ford Motor Credit is charging for the taxes is lower than what the
state of Arkansas would charge. So he's going to put the tax payment to be made by the lease directly to the state of Arkansas, thereby lowering their tax rate and this bill, the way the law is right now, the state of Arkansas is at a competitive disadvantage because other states are doing it the way we want to the head my and 5 misspeaking, I think Mr. Paul is here and I saying that right? Are you having anything bad? Do you want to, if that's OK if you
Chair (Senator Jimmy Hickey, Jr)
Unverified
17:03
don't mind, uh, Mr. Geering, we'll just, uh, Similar, similar to this morning, just a little different twist, I guess on the other bill. So, uh, if you
Speaker 66
17:14
just introduce yourself, Paul Gehing DFA. So, uh, we are at DFA we
Speaker 67
17:17
are reviewing and will be issuing a fiscal impact statement. We apologize for the delay. Um, the, the bill provides that there is going to be a cap of $2500 on the lease stream for the lease of a motor vehicle, that cap also exists on purchases of motor vehicles when
it comes to the local sales taxes that are collected on the transaction. Um, for property tax purposes, the bill also provides that there will be, um, the owner of the vehicle would be the, the lessee
Speaker 68
17:44
as as opposed to the lessor. OK. OK, this is just on motor
Speaker 67
18:05
vehicles. That's correct. leased motor vehicles. Tractors and
Chair (Senator Jimmy Hickey, Jr)
Unverified
18:10
things of that nature, are they gonna be considered a motor vehicle or anything like that. OK, fair enough. The center board, you're recognized.
Senator Justin Boyd
Unverified
18:19
I think you just answered it, but I want you to just say it again. Does this affect local sales tax and property
Speaker 67
18:25
tax. It would affect um the collections of local sales and use taxes on leases of motor vehicles because currently the lease, the lease stream is going to be subject to the full sales
tax. It's not, the lease stream is not capped at $2500 currently. So, um, no impact to state revenues. The only impact would be is that the lease stream from a leased motor vehicle would be capped at $2500 in payments. OK. Any other questions from members? He went
Chair (Senator Jimmy Hickey, Jr)
Unverified
18:54
from the audience won't speak for this. Anyone will speak against this. You want to close or. Yes.
Senator Matt Stone
Unverified
19:08
Um I'm closing out a appreciate a, a good
Chair (Senator Jimmy Hickey, Jr)
Unverified
19:20
boat. OK. What's the will of the committee? That's Senator Hester, we have a motion to pass Senator Boyd is 2nd. Any discussion. You have a discussion, Senator Hammer. Oh, I'm sorry, I thought you. OK, any discussion. OK. All in favor say aye.
Any pose? OK, that motion will carrying your
bills passed. Thank you, Senator Stone. Thank you, Mr. Chair. Yes, sir. OK, we also had 568, is
Speaker 30
19:44
that. Let me make sure what is anybody else here
Speaker 78
19:59
to present a bill. OK, OK. Yeah. Senator Hammer, you, you're recognized, sir.
Senator Kim Hammer
Unverified
20:02
I was just gonna ask if we could here in 1935, uh, Mr. McDonald's in the room. I think he's got some insight while they're in the
room. I know you're throwing your curveball,
Chair (Senator Jimmy Hickey, Jr)
Unverified
20:12
but anyway, no, no, we're planning on, we're planning on doing
Speaker 81
20:15
that, but what do you, it was on the, it's on the supplemental agenda. OK. And if possible, I think it's a quick one. I'd like to run it for Mr. Gilbert. It was
Senator Jimmy Hickey, Jr
Unverified
20:27
on, it was on our Senate supplemental calendar last night, Oh,
Chair (Senator Jimmy Hickey, Jr)
Unverified
20:33
it's on our OK. All right. OK. If, if you don't mind, which one, what's the number on it?
Senator Jimmy Hickey, Jr
Unverified
20:42
OK. All right, members with that, we're gonna try to keep them in order then. So without, without objection, uh, for many of the members, we're gonna hear a House bill. 1894. Any objection
Chair (Senator Jimmy Hickey, Jr)
Unverified
20:53
to that? OK. So Oh, thank you.
That one is the one already in. Yep, House Bill 1894, uh, Senator, if, if you'd
Senator Jim Petty
Unverified
21:26
recognize yourself. Yes, sir. Thank you, Mr. Chair. Senator Jim Petty, uh, District 29. This is, uh, Senator Gilmore's bill, but he's in the committee, uh presenting and uh he he said I could, uh, run this for them. It is, and, and first of all, full disclosure, this does affect an industry that I participate in,
uh, but, uh, I've got that disclosed already. This bill is essentially there was a bill filed, uh, AC. had some, some concerns and so all this bill will do is, uh, require that ACD, uh, go through and create a rule and guidelines on a very complicated, uh, uh, assessment process, uh, in that industry. I think, I think to the almost quote, uh, was that this is one of the most complicated assessments in real estate that we deal with. This will provide some guidelines and
some rules around, uh, assessments in that area and, and that's essentially, uh, it'll have to be be approved by, uh, the, uh, Legislative council at that point, once, once they're established with public input, obviously, and, and all of that. OK. Any, uh, any questions by the members? Anyone from our audience
Senator Jimmy Hickey, Jr
Unverified
22:34
want to speak for this bill. Yes, ma'am.
Speaker 90
22:47
And you just introduce yourself. Lindsey French Association of Counties, um, you may have gotten some, uh, emails or texts from your members about this. Um, that was in the previous version of the bill that's been scrapped. We worked with
Speaker 92
22:58
the sponsors and are thankful for them for working with us and we are good with the bill as written. I appreciate you saying that.
Chair (Senator Jimmy Hickey, Jr)
Unverified
23:05
Yes, ma'am. Thank you. Anyone else want to speak against the bill, for the bill? You close, Senator. I am closed, and I'd appreciate a good vote with
Senator Jim Petty
Unverified
23:13
a motion to pass. All right, we have a motion by Senator Petty.
Senator Jimmy Hickey, Jr
Unverified
23:18
Do pass we have Senator Boyd with the 2nd. Any discussion on the motion. All in favor say aye. Any oppose? OK, that bill will, will carry that motion will pass and the bill. That motion will carry and the bill will pass. All right, and that was 1894. OK, is there anybody else? I understand 1935. Is anybody else in the room to do any other bills? OK, so this possibly is gonna be our last one. House Bill 1935.
Chair (Senator Jimmy Hickey, Jr)
Unverified
23:49
You know, the drill, if you'll just introduce yourself and
Representative Les D. Eaves
Unverified
23:56
you can begin. Thank you, Senator Representative Leeaves. Um So how 95, Arkansas currently has a series of incentive. 15, 1935. Yes, sir. Arkansas currently has a series of incentive programs available for companies that are seeking to move into our state and do business in our state. Uh, what we don't have are adequate incentives for companies that are already here that wish to expand or modernize their existing facilities. And so this has the net effect of
encouraging Arkansas businesses to make large investments, uh, or expansions outside of the state rather than investing In additional operations here, so this bill seeks to remedy that issue. It provides for a tax credit for businesses that have been, uh, in continuous operation in the state for at least 2 years. Uh, they have to incur a minimum of $25 million in eligible product, project costs, and they have to hold a direct pay sales and use tax permit. Uh, the project cost would include construction of a new plant or facility and the
expansion or modernization of an existing plant, uh, or facility and if allowed the credit is up to 5%. Of the eligible uh project costs, uh, the maximum credit that can be used in any fiscal year is $2 million. The unused credits can be carried forward for up to 5 years. Um, and the qualified project forming the basis of the credit application has to be completed within 5 years and then real critical part to me was that the business must maintain the current yearly average payroll and employment level during the course of the project
and for 24 months following the
Senator Jimmy Hickey, Jr
Unverified
25:29
completion of the project. OK, members, any, uh, Any questions in regard
Senator Kim Hammer
Unverified
25:35
to this? Yes, sir. Senator Hammer. Just clarifying revenue neutral or what.
Representative Les D. Eaves
Unverified
25:41
Well, yeah, you have to do a um a um No. Thank you. It's
been a long week. Cost benefit analysis of positive cost benefit analysis
to the state before they be allowed to take
Speaker 30
26:04
the credits. OK. OK. There are clawbacks on it, it appears like. Yes, sir. OK I, I do have a
Chair (Senator Jimmy Hickey, Jr)
Unverified
26:11
question on that, and that may be better for somebody else. And again, just, just so that I'll know, whenever we do these clawbacks, So we just, we prepare a contract and, uh, record that or anything or how, how's all that done? Do you mind coming to the
table? I'd just like to hear how we, how we do those clawbacks. Because I mean, we, we sit here and say that You know, that they, uh, You know, they have to do something, you know, for at least 24 months and things of that nature. I just want to make sure, how, how, if, if we were to have someone that didn't do it, have we, have we, are we, have we filed all that or how do we actually, uh, uh, get all that in place so that we know it's a valid. Yes, sir. Thank you, Mr. Chair. Uh, so it's a little bit different for each program for
Speaker 99
26:56
this program that has a payroll requirement, the payroll requirement. O'Neill, AEDC. Thank you for having me here this morning. Um, each program has a little bit of a different, um, agreement, but the agreements that we have are legally binding, uh, clawback agreements that have a payroll requirement would be checked on an annual basis for a program like this that requires them to maintain a base annual payroll, it would be checked on an annual basis, and it would be spelled out in the
agreement, what the ramifications are, if they dip below that. So the, the typical agreement is on a pro rata basis. Um, if they Um, you know, for, for jobs agreements where you agree to create 100 jobs and we agreed to to do X for you and you create 50, then, you know, we call back half of it. Uh, for, for this one, it's a little bit different because it's not a job creation requirement, but it's a job maintenance requirement. So we would spell out in that agreement on that annual check
if you dip below the payroll, what that would mean in terms of paying
Chair (Senator Jimmy Hickey, Jr)
Unverified
28:01
back those credits. OK. And again, this is not about this bill as much as it is. I just want to fully understand how we do it. Do we record those or anything, or they're just agreements that you all keep, keep in your, in office, I mean, I guess we just have to try to collect them if Somebody didn't. We do, we do. And
Speaker 99
28:19
so it's in coordination with DFNA and um, you know, we never want to have an adversarial relationship with the company, but there are occasions and
Uh, there was an occasion within the last couple of weeks where we
Speaker 98
28:32
got a million dollars back from a company who just didn't live up to its agreement, and they, they paid us back. OK, fair enough. Senator
Senator Kim Hammer
Unverified
28:38
Hammer, just what happens if the company goes out of business? How's that work? I mean, just worst case scenario, how
Speaker 99
28:43
does that work? Yeah, worst case scenario, we don't get our money back, um, with, and that, and that unfortunately has happened, uh, you know, we'll we'll chase that to the degree that it's, uh, prudent to do so, uh, but if a company, uh, goes out of business. You know, in a case like this,
um, these are not refundable credits, and so there's just not getting to utilize the credits that they've earned if it's a, uh, upfront cash program like the Governor's Quick action closing fund, that's obviously a little bit more unfortunate when a company takes the money and goes out of business, um, you know, somewhat of a rare instance on that just because of the nature of the due diligence that we do on the front end and the lack of grants that we provide to Um, early stage companies are those that don't have the stability that others do. OK, so
Senator Kim Hammer
Unverified
29:30
on this particular bill, what's the risk factor then? I mean. What's the risk
Speaker 99
29:35
on this one? I honestly, I think it's a low risk here. We're talking about established companies that are able to invest a minimum of 25 million, and they would not receive any benefits from the state until they validated that $25 million plus investment. So it would be a, a minimal risk on an ongoing basis that they would go out of business after doing so. In the
Senator Kim Hammer
Unverified
29:57
evaluation of determination if they would get
to take advantage of this, you would have enough, you should be able to collect enough history on the company to know whether or not they qualify based on their fiscal stability. Yes, sir. OK, thank you. Again, mine's not specific about
Chair (Senator Jimmy Hickey, Jr)
Unverified
30:15
this this credit or whatever. I just kind of wanted to know how that works. Just, just one additional and then I'll, I'll get off this. So are those agreements are, they are written to such that we could pursue a court action and things to that nature and, and attached to any,
any, uh, assets and things like that. That's the way they're structured. OK. It's good, just
Senator Jim Petty
Unverified
30:40
good information. All right. Thank you. Senator Petty, Well, thank you, Mr.
Chair, while he's here. So I, I, I know everybody's, you know, dream is to bring a lot of new jobs to your community, uh, but we have a lot of, as you said, or, or, uh, uh, representatives said, we have, we have a number of incentives to bring new jobs, but we have existing successful, uh, invested companies, uh, and,
and, and I think you guys, uh, would agree that retention is probably an easier thing for us to, uh, to do than to, to attract new jobs. Are there any other retention, uh, type incentives? At this point, uh,
Speaker 99
31:18
that we have. The only other retention incentives that we have would be traditional incentive programs that we could classify as retention with my signature and the signature of of Secretary Hudson to classify it as retention and then give them job
credits for the existing jobs. That's, that's very rare. I think it's been done twice within this administration. Uh, it's, it's kind of a square peg round hole. So when Secretary McDonald and I established an incentives working group and brought together economic development professionals over the last year to really think through what new incentives do we need. This, this really rose to the top as local economic development professionals said, you know, we always think about jobs in terms of small business and entrepreneurship, existing business, and recruiting new business.
And so when we have established companies, especially those that have multiple facilities and they may have the opportunity to really invest in one of their facilities, and unfortunately, A lot of times that means the lack of investment in other facilities, uh, which, you know, may result in, in, you know, fading away and closure within a decade or so. So, uh, this would really be a signature program for retention and, uh, and, you know, encouraging that investment in Arkansas. Thank you. OK, thanks for your information. Sorry to run you on
Chair (Senator Jimmy Hickey, Jr)
Unverified
32:39
a rabbit trail like that, but right, we had the opportunity. OK. Any other questions from, uh, the members? Anyone from the audience wants to speak for this? Anyone want to speak against this, you close it, uh, representative. Yes sir I just wanted to say one thing, um. About a year ago, the
Representative Les D. Eaves
Unverified
32:52
company that I worked for, we were trying to invest in some modernization and automation, not to this level, and I called the AEDC and asked if they have any, you know, grant programs or incentives that would help us do that. And the reason I asked, and they said no, they didn't have any.
was because we have competitors in other states, Indiana or and others where the direct competitors to our industry had programs in their state that did allow them to upgrade and and do some robotic sales and things like that, and we didn't have that. So, um, I, I never pursued it and when we came into session this year, um, they sent some information about this bill, and I thought, that's, that's exactly what I'm talking about. Again, it would have no effect on the business. I'm, I'm in or part of, uh, we wouldn't make that level of an investment, but they're clearly other industries that will make
this level of investment and uh it's really about um retention and also competitiveness in our manufacturing sector specifically, but that I'm closed. OK. Thank you.
Senator Jimmy Hickey, Jr
Unverified
33:48
We have a motion to pass by Senator Boyd, have a second by Senator
Petty. Any discussion on the, uh, motion. OK, all in favor of the motion, say aye. Any oppose? OK, that'll carry, so thank you for your time. All right. Nobody else here. Members, I, I don't know that there's going to be any reason to meet Monday. I think we're, we're, we may be pretty much
done. Appreciate the staff if we were to, were to have to meet, we'll do it, especially today, we put them through a
Speaker 107
34:19
lot. So, uh, thank you all. I appreciate it. Wow.
Agenda
CALL TO ORDER
HB1085 K. Brown TO ADOPT FEDERAL LAW CONCERNING TAX-DEFERRED TUITION SAVINGS PROGRAMS; AND TO AMEND THE INCOME TAX LIABILITY FOR ROLLOVER CONTRIBUTIONS FROM AN ARKANSAS BRIGHTER FUTURE FUND PLAN TO A ROTH INDIVIDUAL RETIREMENT ACCOUNT.
HB1491 Wardlaw CONCERNING THE EXCISE TAX ON CERTAIN BEER AND SAKE; TO CREATE AN EXCISE TAX CREDIT FOR CERTAIN BEER AND SAKE PRODUCED USING ARKANSAS RICE; AND FOR OTHER PURPOSES.
HB1732 Vaught TO INCREASE THE AMOUNT OF THE INCOME TAX DEDUCTION ALLOWED FOR A TEACHER'S CLASSROOM INVESTMENT.
HB1807 TO AMEND THE SALES TAX EXEMPTION FOR AIRCRAFT HELD FOR RESALE AND USED FOR RENTAL OR CHARTER; AND TO CLARIFY THE PERSONS ELIGIBLE FOR THE SALES TAX EXEMPTION FOR AIRCRAFT HELD FOR RESALE AND USED FOR RENTAL OR CHARTER.
HB1960 TO PROVIDE THAT THE LESSEE OF A LEASED MOTOR VEHICLE IS THE OWNER FOR PURPOSES OF THE ASSESSMENT AND PAYMENT OF PROPERTY TAXES; AND TO AMEND THE LAW CONCERNING LOCAL SALES AND USE TAXES ON CERTAIN TANGIBLE PERSONAL PROPERTY.
HB1894 TO ESTABLISH A METHOD OF VALUATION FOR REAL PROPERTY USED FOR AFFORDABLE HOUSING; AND TO ESTABLISH A METHOD OF VALUATION FOR CERTAIN REAL PROPERTY UNDER ARKANSAS CONSTITUTION, ARTICLE 16, § 5.
HB1935 TO CREATE A MODERNIZATION AND AUTOMATION TAX CREDIT TO ENCOURAGE INVESTMENT BY EXISTING BUSINESSES WITHIN THE STATE.
HB1063 TO AMEND THE ACHIEVING A BETTER LIFE EXPERIENCE PROGRAM ACT; AND TO AMEND THE DEFINITIONS OF "DISABILITY CERTIFICATION" AND "ELIGIBLE INDIVIDUAL" TO CHANGE DISABILITY ONSET AGE FROM TWENTY-SIX TO FORTY-SIX.
ADJOURNMENT
Documents
| Title | Type | Pages | Source |
|---|---|---|---|
| Agenda — REVENUE & TAX - SENATE, Apr 10, 2025 | Agenda | 3 | Official source ↗ |
Speakers
Senator Jimmy Hickey, Jr
Unverified
Chair (Senator Jimmy Hickey, Jr)
Unverified
Representative Jeff Wardlaw
Unverified
Speaker 12
Speaker 13
Speaker 20
Speaker 26
Representative Matt Brown
Unverified
Senator Justin Boyd
Unverified
Speaker 39
Senator Steve Crowell
Unverified
Representative DeAnn Vaught
Unverified
Representative Les D. Eaves
Unverified
Senator Matt Stone
Unverified
Speaker 63
Speaker 66
Speaker 67
Speaker 68
Speaker 30
Speaker 78
Senator Kim Hammer
Unverified
Speaker 81
Senator Jim Petty
Unverified
Speaker 90
Speaker 92
Speaker 99
Speaker 98
Speaker 107