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…”
|
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…”
|
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…”
|
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…”
|
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. |
|
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…”
|
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. |
|
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. |
|
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. |
|
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 |
|
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…”
|
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. |
|
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. |
|
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…”
|
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…”
|
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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- October 6, 2026
Senator Jimmy Hickey, Jr
Unverified
0:00
We've got the cameras on. We wanted to make sure we had those fixed for public viewing. So the first bill that we're going to be doing here, or we're back from recess, the next bill we're going to be doing is House Bill 1491, members.
Chair (Senator Jimmy Hickey, Jr)
Unverified
0:18
Okay. Senator Wardlaw, if you'd just introduce yourself and you're recognized to present your bill. I appreciate the promotion, but I'm just a representative. Representative Jeff Wardlaw. Representative
Representative Jeff Wardlaw
Unverified
0:29
Wardlaw, excuse me. District 94, I've never had the ability to understand the esteem level that the Senate's on.
Would you just present your bill, sir? Members, House Bill 1491 is a bill that's near and dear to me, and here's why. I work, 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 that 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 are 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, it's corn. And the reason it's corn is because the rice market's fallen to almost $5.80 and to break even for a farmer, it's $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 building, if it was another customer, 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 fixed this bill and crafted this bill where the tax incentive stays in the state with the wholesalers of the beer or of the sake or sake or 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 the most they'll get is a 22 tax credit
of that particular item the cost assessments came up numerous times i've talked to all the players in the game at the moment that i know of i want to be clear about that that i know of the in-state breweries in the sake is roughly about forty thousand dollar impact talk to the anheuser-bush 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 one 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 in what we're known for all over the world, and that's Arkansas rice. With that, Mr. Chair, I'd be glad to take any questions. Okay, are there
Senator Jimmy Hickey, Jr
Unverified
3:35
any questions, Representative Wardlaw, from the members? Okay, is there
Chair (Senator Jimmy Hickey, Jr)
Unverified
3:41
anybody in the audience who wants to speak for this bill? Anyone want to speak against this bill? Oh, okay,
Speaker 12
3:49
we'll go back to a question from Senator Hammer.
I just want to clarify, I think I'd heard it previous, but revenue neutral,
Speaker 13
3:55
or what? It's about a million-dollar impact. It's a million impact. Okay, thanks. Okay. All right. I don't see
Chair (Senator Jimmy Hickey, Jr)
Unverified
4:03
any other questions. Is there anyone from the audience who wants to speak
Senator Jimmy Hickey, Jr
Unverified
4:08
for or against? Are you closed, Senator Wardlow? Yes, sir. Yes, sir. I'm closed. Okay. Do I have a motion? I have a motion from Senator Crowell. I have a motion from Senator Boyd. Any discussion on the motion?
All in favor say aye. Aye. Any opposed? Congratulations, Representative Wardlow. Thank you, Mr. Chair. Yes, sir. All right. So at this point, okay, we've done 1491. The next one that we're going to hear is going to be, let me rephrase that. House Bill 1085. This one does have a fiscal impact, and it is on our deferred list. So without objection, I'm going to pull that off the deferred list. Do I have an objection to pull it off? Okay, seeing none, Representative Brown, if you want to come to the end of the table.
And again, members, it's going to be
Speaker 20
5:27
Give me a second. I'm having trouble finding it. $10.85 or $14.85? $10.85. $10.85.
Speaker 26
5:53
Any other members not have it? I don't think I have it, but I can look it
Speaker 12
5:56
up on my phone. All right. I found it in mine.
Senator Jimmy Hickey, Jr
Unverified
6:00
It's towards. All right. Everybody else has got it pulled, either electronic copy or a hard
Chair (Senator Jimmy Hickey, Jr)
Unverified
6:17
copy. Everybody's got that? Okay. If you would, just introduce yourself, and then you'll be recognized to present
Representative Matt Brown
Unverified
6:25
your bill. Representative Carolyn Brown, District 67, which is predominantly north of Pulaski.
I'm here to present House Bill 1085. It is to bring our Arkansas 529 plan, which we call the Arkansas Brighter Future Plan Act, into alignment with the newest federal regulations regarding these education savings accounts. And I don't know how much information you want. I don't want to waste your time.
But our total assets under management for our 529 plans are $1,431,429 and $429,480. And the qualified withdrawals for education expenses in 2023 were almost $1 million, and in 2024, slightly over $1 million, $102 million. The fiscal impact on this 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 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 the taxes that we would not collect. That's an estimate. Anyway, what this bill does is it allows the owner of the account, it designates a beneficiary.
If it appears 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. Okay. Members, do you have
Senator Jimmy Hickey, Jr
Unverified
8:42
any questions in regards to this bill? I
Chair (Senator Jimmy Hickey, Jr)
Unverified
8:48
think everybody understands what we're doing here.
Senator Justin Boyd
Unverified
8:52
Senator Boyd, do you have one? Maybe I'm just slow. So we've got a 529 account at the state, and we're not going to 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, because you're going from
Representative Matt Brown
Unverified
9:11
one qualified account to another qualified account. Sounds like a lot of incentive for saving. Yes, it does. And it
Speaker 39
9:20
marries it up with the federal guidelines, is that correct?
Chair (Senator Jimmy Hickey, Jr)
Unverified
9:25
Yes, sir. Okay, so we're going to be consistent with the feds on that. Okay.
Speaker 22
9:29
And it takes effect. It's effective January 1,
Representative Matt Brown
Unverified
9:34
2024, so people are already filing their taxes and counting on this. Sure, I understand. Any other questions from members?
Senator Jimmy Hickey, Jr
Unverified
9:41
Anyone from the audience want to speak for the bill? Anyone want to speak against the bill? Are you closed, aren't you, ma'am? I'm closed for my bill. 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. Aye. Any opposed? Congratulations. Your bill is passed. Thank you, committee. Yes, thank you. All right, members, that was 1085. The next one, are you going to present the Mayberry? All right, we're going to do 1063, and then we're going to go after that to 1732. So, Representative Vaught, if you're just going to stick around, we'll get there. Okay, so, Senator Crowell, you're going to be presenting House Bill 1063.
And if you don't mind, members, you got
Chair (Senator Jimmy Hickey, Jr)
Unverified
10:29
everybody fined their bill. Senator Crowell, District 3.
Senator Steve Crowell
Unverified
10:35
You're recognized, sir. This is for ABLE accounts. Federal government passed in 2022, and it will come in effect in 2026, so that people without risking their benefits can open their ABLE account. in the ABLE account, you know, and have money in there so they can use it for the things they need as a therapy, medical devices.
And this is intent to make sure there's no confusion. It's going to be about a $20,000 hit.
Chair (Senator Jimmy Hickey, Jr)
Unverified
11:05
Okay. Any questions on this? Any member who have a question? Anyone for the audience want to speak for this bill? Anyone want to speak against this bill? You close, Senator Crowell? Close and make a motion, do pass. All right. Senator Crowe, was motion due
Senator Jimmy Hickey, Jr
Unverified
11:22
passed? Senator Dismang is second. Any discussion on the motion? All in favor say aye. Aye. Any opposed?
That bill is also passed. Representative Vaught. Okay. On this one, members, we're going to be hearing House Bill 1732. Everybody ready
Chair (Senator Jimmy Hickey, Jr)
Unverified
11:43
or not? Okay. DM Vaught, District
Representative DeAnn Vaught
Unverified
11:47
87. This bill, our teachers are investing more and more into their classrooms. Some of that is due to 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 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 $1,000. I will say that I've helped a couple of my girls set up their rooms, and it's definitely over $1,000. But this will be, they'll keep their receipts, and they turn them in with their tax stuff during tax season,
Chair (Senator Jimmy Hickey, Jr)
Unverified
12:32
and that's how they get their deduction. Okay. Any members have any questions in regards to this? Anyone from my audience want to speak for this bill? Anyone want to speak against this
bill? You're closed. Representative Vought, I've been saying that all night. Not representative vote.
Representative DeAnn Vaught
Unverified
12:49
Okay. You're my senator, so I appreciate that. And I'm
Chair (Senator Jimmy Hickey, Jr)
Unverified
12:52
closed. All right. Do we have a motion? I have a motion of Senator Crowe. I have
Senator Jimmy Hickey, Jr
Unverified
12:58
a second by Senator Hammer. Any discussion on the motion?
Okay. All in favor say aye. Aye. Any opposed? Thank you all so much. Congratulations.
Okay. Next one is going to be Representative Ease, Houch Bill 1807. Okay,
Chair (Senator Jimmy Hickey, Jr)
Unverified
13:26
if you'll just introduce yourself and you're recognized, begin when you want.
Representative Les D. Eaves
Unverified
13:31
Thank you, Representative Lessie, District 58.
Members, this is House Bill 1807. It's going to help give DF&A some clarity on what our intent is. So current Arkansas law allows individuals selling and leasing aircraft the option of either paying sales tax when they purchase 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 what requirements must be met. It does three things. It clarifies a longstanding 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, and that is 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. That's what the bill does. I'd be happy to take any questions. Okay, any questions from members? Anyone
Chair (Senator Jimmy Hickey, Jr)
Unverified
14:30
from the audience want to speak for this one? Anyone want to speak against this one?
Do you close, Representative? I'm going to close. Thank you.
Senator Jimmy Hickey, Jr
Unverified
14:41
Okay. Do we have a motion? All right. I have a motion by Senator Dismang. I have a second by Senator Boyd. Any discussion on this motion? Okay. All in favor say aye. Aye. Any opposed? Okay. Congratulations. That bill is passed. Thank you, sir. Thank you, Senators. Okay. At this point, members, we had some other bills that were re-referred. One of them is 1960, Senator Stone.
Without objection, we're going to hear that.
Chair (Senator Jimmy Hickey, Jr)
Unverified
15:18
Let me make sure I can find my copy to that particular one. 1960. 1960.
Senator Jimmy Hickey, Jr
Unverified
15:29
Okay, thanks, sir. Okay, do all the members have what they need on this? Okay, if you'd just
Senator Matt Stone
Unverified
15:36
recognize yourself. Matt Stone, State Senate District 2, and if I'm not mistaken, I think there's an amendment on the bill. I don't see it being passed out or anything.
Speaker 63
15:45
It just simply adds me as a sponsor. It's already on
Senator Matt Stone
Unverified
15:52
there. Oh, it's already on there? So it's already engrossed on there. Well, what made me say that it's not
Senator Jimmy Hickey, Jr
Unverified
15:57
the copy I have. My name's not on it, so I just wanted to make sure we're good. Is that
Senator Matt Stone
Unverified
16:03
the only thing the amendment did? That is correct. Then your bill should be good. All right. All right, you're recognized, sir. Members, this bill was brought to Representative Wardlaw and myself by a lot of the Ford dealers in our districts. And what is going on, the way I understand it, when a leasee makes their payment, 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 it's going to put the tax payment to be made by the leasee 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 behead. And if I'm misspeaking, I think Mr. Paul is here. Am I saying that right?
Chair (Senator Jimmy Hickey, Jr)
Unverified
16:53
Or do you have anything to add? Do you want to? If that's okay. Yes. If you don't mind, Mr. Gehring, we'll just, similar to this morning, just a little different twist, I guess, on
Speaker 66
17:09
the other bill. So, if you'd just introduce yourself. Paul Gehring, DFA. Okay.
Speaker 67
17:12
So, we are, at DFA, we are reviewing and will be issuing a fiscal impact statement. We apologize for the delay. The bill provides that there is going to be a cap of $2,500 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. For property tax purposes, the bill also provides that there will be the owner of the vehicle
Speaker 68
17:39
would be the lessee as opposed to the lessor. Okay.
Speaker 69
17:56
Okay. This is just on motor vehicles? That's
Speaker 67
18:00
correct. Leased motor vehicles. Tractors and things to
Chair (Senator Jimmy Hickey, Jr)
Unverified
18:05
that nature, are they going to be considered a motor vehicle or anything like that? No, sir. Okay. Fair enough. Senator Boyd, you're
Senator Justin Boyd
Unverified
18:14
recognized. I think you just answered it, but I want you to say it again. Does this affect local sales
Speaker 67
18:20
tax and property tax? It would affect the collections of local sales and use taxes on leases of motor vehicles
because currently the lease stream is going to be subject to the full sales tax. The lease stream is not capped at $2,500 currently. So no impact to state revenues. The only impact would be is that the lease stream from a leased motor vehicle would be capped at $2,500 in payments. Okay. Any other questions from members?
Chair (Senator Jimmy Hickey, Jr)
Unverified
18:49
Anyone from the audience want to speak for this? Anyone want to speak against this?
Senator Matt Stone
Unverified
18:59
Do you want to close? I'm closing. I'd appreciate
Chair (Senator Jimmy Hickey, Jr)
Unverified
19:15
a good vote. Okay. What's the will of the committee? Senator Hester, we have a motion do pass. senator boyd is uh second any discussion you have a discussion senator hammer no oh i'm sorry i thought you okay any discussion okay all in favor say
aye aye any opposed okay that motion will
carry in your bills passed thank you senator stone thank you mr chair yes sir okay
Speaker 78
19:54
present a bill okay senator hammer you're recognized sir i
Senator Kim Hammer
Unverified
19:57
was just going to ask if we could hear 1935 mr mcdonald's in the room i think he's got some insight while they're in the
room right i don't maybe throw in your curveball but anyway no
Chair (Senator Jimmy Hickey, Jr)
Unverified
20:07
no we're planning on we're planning on doing that but what do
Speaker 81
20:10
you center one i was talking to you about earlier today it was on the it's on the supplemental agenda okay and acd is here and if possible i think it's a quick one i'd like to run
Senator Jimmy Hickey, Jr
Unverified
20:22
in for mr gill it was on it was on our senate supplemental calendar
Chair (Senator Jimmy Hickey, Jr)
Unverified
20:28
last night no this is oh it's on our okay all right okay if you don't mind which one what's the number
Senator Jimmy Hickey, Jr
Unverified
20:34
on it? 1894. Okay. All right. Members, we're going to try to keep them in order then. So without objection from any of the members, we're going to hear a House Bill 1894. Any objection to
Chair (Senator Jimmy Hickey, Jr)
Unverified
20:48
that? Okay. Yep, House Bill 1894.
Senator, if you'd recognize yourself. Yes,
Senator Jim Petty
Unverified
21:21
sir. Thank you, Mr. Chair. Senator Jim Petty, District 29. This is Senator Gilmore's bill, but he's in the committee presenting, And he said I could run this for them. And first of all, full disclosure, this does affect an industry that I participate in. But I've got that disclosed already. This bill is essentially, there was a bill filed. ACD had some concerns. And so all this bill will do is require that ACD go through and create a rule and guidelines on a very complicated 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 that's essentially, uh, it'll have to be approved by, uh, the, uh, legislative council, uh, at that point, once, once they're established with public input, obviously, and all of
Senator Jimmy Hickey, Jr
Unverified
22:29
that. Okay, any questions by the members?
Chair (Senator Jimmy Hickey, Jr)
Unverified
22:34
Anyone from the audience want to speak for this bill? Yes, ma'am.
Speaker 90
22:44
Lindsay, if you'll just introduce yourself. Lindsay French, Association of Counties. You may have gotten some e-mails or texts from your members about this. That was in the previous version of the bill. That's been scrapped. We worked
Speaker 92
22:53
with the sponsors and are thankful for them for working with us, and we are good with the bill as written. Appreciate
Chair (Senator Jimmy Hickey, Jr)
Unverified
23:00
you saying that. You bet. Yes, ma'am. Thank you. Anyone else want to speak against the bill, for the bill?
Senator Jim Petty
Unverified
23:06
You closed, Senator? I am closed, and I'd appreciate a good
Senator Jimmy Hickey, Jr
Unverified
23:11
vote with a motion due pass. All right. We have a motion by Senator Petty, due pass. We have Senator Boyd with a second. Any discussion on the motion? All in favor, say aye. Aye. Any opposed? Okay, that bill will carry, that motion will pass, and the bill, that motion will carry, and the bill will pass. Thank you, Mr. Chair. All right, and that was 1894. Okay, is there anybody else? I understand 1935. Is there anybody else in the room to do any other bills? Okay, so this possibly is going to be our last one.
Chair (Senator Jimmy Hickey, Jr)
Unverified
23:38
House Bill 1935. You know the drill. If you'll just
Representative Les D. Eaves
Unverified
23:51
introduce yourself, and you can begin. Thank you, Senator Representative Lesse. So House Bill 95, Arkansas currently has a series of incentives. House Bill 1935? Yes, sir, House Bill 1935. All right. 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. 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 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 in continuous operation in the state for at least two years. They have to incur a minimum of $25 million in eligible project costs, and they have to hold a direct pay sales and use tax permit. The project cost would include construction of a new plant or facility
And the expansion or modernization of an existing plant or facility And if allowed, the credit is up to 5% of the eligible project costs The maximum credit that can be used in any fiscal year is $2 million The unused credits can be carried forward for up to five years And the qualified project, forming the basis of the credit application Has to be completed within five years And then the 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
Senator Jimmy Hickey, Jr
Unverified
25:24
the completion of the project. Okay, members, any questions in
Senator Kim Hammer
Unverified
25:30
regard to this? Yes, sir. Senator Hammer? Clarifying revenue neutral
Representative Les D. Eaves
Unverified
25:36
or what? Yeah, you have to do a, no, thank you. It's
been a long week. Cost-benefit analysis, positive cost-benefit analysis to the state
before they'll be allowed to take the
Speaker 30
25:59
credits. Okay. Okay. There are clawbacks on it, it appears like. Yes, sir. i do have a question
Chair (Senator Jimmy Hickey, Jr)
Unverified
26:06
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 do we just we prepare a contract and record that or anything or how's all that doing do you mind come to the table i'd just like to
hear how we how we do those clawbacks because i mean we sit here and say that you know that they 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 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 get all that in place so that we know it's a valid yes sir thank you mr chair uh so
Speaker 99
26:49
it's a little bit different for each program for this program
that has a payroll requirement the payroll requirement if you would if you would yes sir clint o'neill aedc yes thank you for having me here this morning um each program has a little bit of a different agreement, but the agreements that we have are legally binding, 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 typical agreement is on a pro rata basis. If they, You know, for jobs agreements where you agree to create 100 jobs and we agree to do X for you and you create 50, then, you know, we call that half of it. 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 back those credits.
Chair (Senator Jimmy Hickey, Jr)
Unverified
27:58
Okay, 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 are they just agreements that you all keep in office? I mean, I guess we'd just have to try to collect them if somebody didn't. We do,
Speaker 99
28:14
we do, and so it's in coordination with DF&A. And, you know, we never want to have an adversarial relationship with a company, but there are occasions, and there was an occasion within the last couple weeks where we got a million dollars back from
Speaker 98
28:27
a company who just didn't live up to its agreement,
and they paid us back. Okay. Fair enough. Senator Hammer? Just
Senator Kim Hammer
Unverified
28:33
what happens if the company goes out of business? How does that work? I mean,
Speaker 99
28:38
just worst-case scenario, how does that work? Yeah, worst-case scenario, we don't get our money back. And that, unfortunately, has happened. You know, we'll chase that to the degree that it's prudent to do so. But if a company goes out of business, you know, in a case like this, these are not refundable credits, and so they're just not getting to utilize the credits that
they've earned. If it's an 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. 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 early stage companies are those that don't have the stability that others do. Okay, so
Senator Kim Hammer
Unverified
29:25
on this particular bill, what's the risk factor then? I mean, what's the risk on this one? Honestly,
Speaker 99
29:30
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 minimal risk on an ongoing basis that they would go out of business after doing so. So
Senator Kim Hammer
Unverified
29:52
in the 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?
Chair (Senator Jimmy Hickey, Jr)
Unverified
30:08
Yes, sir. Okay, thank you. Again, mine's not specific about this credit or whatever. I just kind of want to know how that works. Just one additional, and then I'll get off this. So are those agreements, they are written to such that we could pursue a court action and things to that nature and attach to any assets
and things like that? That's the way they're structured. Okay. It's just good information. All
Senator Jim Petty
Unverified
30:35
right. Thank you. Senator Petty? Well, thank you, Mr. Chair, while he's
here. So I know everybody's, you know, dream is to bring a lot of new jobs to your community.
But we have a lot of, as you said, or representatives said, we have a number of incentives to bring new jobs. But we have existing, successful, invested companies. And I think you guys would agree that retention is probably an easier thing for us to do than to attract new jobs. Are there any other retention-type incentives at this point that we have?
Speaker 99
31:13
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 Secretary Hudson to classify it as retention and then give them job credits for the existing jobs.
That's very rare. I think it's been done twice within this administration. 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 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, which, you know, may result in, you know, fading away and closure within a decade or so. So this would really be a signature program for retention and, you know, encouraging that investment in Arkansas. Okay, thanks for your information.
Chair (Senator Jimmy Hickey, Jr)
Unverified
32:34
like that. No problem. All right, we had the opportunity.
Okay, any other questions from the members? Anyone from the audience want to speak for this? Anyone want to speak against this? You close, Representative? Yes, sir, I just wanted to say one thing.
Representative Les D. Eaves
Unverified
32:47
About a year ago, the company that I worked for, we were trying to invest in some modernization and automation, not to this level, and I called AEDC and asked if they have any 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 and others,
where the direct competitors to our industry had programs in their state that did allow them to upgrade and do some robotic sales and things like that, and we didn't have that. So I never pursued it, and then when we came into session this year, they sent some information about this bill, and I thought, well, that's exactly what I'm talking about. Again, it would have no effect on the business I'm in or part of. We wouldn't make that level of an investment. But there are clearly other industries that will make this level of investment, and it's really about retention and also competitiveness in our manufacturing sector specifically.
Senator Jimmy Hickey, Jr
Unverified
33:42
With that, I'm closed. Okay, thank you. We have a motion do pass by Senator Boyd.
I have a second by Senator Petty. Any discussion on the motion? Okay, all in favor of the motion, say aye. Aye. Any opposed? Okay, that will carry. so thank you for your time yep 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 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 lot so
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 16
Speaker 20
Speaker 26
Representative Matt Brown
Unverified
Senator Justin Boyd
Unverified
Speaker 39
Speaker 22
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 69
Speaker 30
Speaker 78
Senator Kim Hammer
Unverified
Speaker 81
Senator Jim Petty
Unverified
Speaker 90
Speaker 92
Speaker 99
Speaker 98
Speaker 91
Speaker 107