Revenue & Taxation- House
Video
Transcript
1 document
Bills discussed (60)
| Bill | Title | Sponsor | Status |
|---|---|---|---|
|
HB1920
· 7 mentions in agenda, chapter, transcript
Matched: “…ALIFIED BUSINESS EXPENSES UNDER THE INCOME TAX ACT OF 1929. HB1920 McClure TO TRANSFER GENERAL REVENUE TO THE AGING AND ADULT…”
|
TO TRANSFER GENERAL REVENUE TO THE AGING AND ADULT SERVICES FUND ACCOUNT TO BE USED … | McClure | WITHDRAWN BY AUTHOR |
|
HB1702
· 6 mentions in transcript, chapter, agenda
Matched: “…r that's got to present another bill, um, which is gonna be HB 1702 representative Wooldridge, if you'll go down to the end of…”
|
TO AMEND THE SALES AND USE TAX EXEMPTIONS FOR CERTAIN MACHINERY AND EQUIPMENT USED IN … | Wooldridge | Died in House Committee at Sine Die adjournment. |
|
SB529
Act 617
· 4 mentions in agenda, chapter, transcript
Matched: “…" USED UNDER THE ARKANSAS TOBACCO PRODUCTS TAX ACT OF 1977. SB529 B. Johnson TO AMEND THE INDEPENDENT TAX APPEALS COMMISSION…”
|
TO AMEND THE INDEPENDENT TAX APPEALS COMMISSION ACT. | B. Johnson | Notification that SB529 is now Act 617 |
|
HB1063
Act 875
· 3 mentions in transcript, agenda
Matched: “…passed. The next one that we've heard prior is going to be HB 1063, which is represented of Mayberry's about the deductions fo…”
|
TO AMEND THE ACHIEVING A BETTER LIFE EXPERIENCE PROGRAM ACT; AND TO AMEND THE DEFINITIONS … | J. Mayberry | Notification that HB1063 is now Act 875 |
|
HB1303
Act 546
· 3 mentions in chapter, agenda, transcript
Matched: “HB1303 Jean TO CREATE THE SUSTAINABLE AVIATION FUEL INCENTIVE ACT;…”
|
TO CREATE THE SUSTAINABLE AVIATION FUEL INCENTIVE ACT; AND TO CREATE AN INCOME TAX CREDIT … | Jean | Notification that HB1303 is now Act 546 |
|
HB1485
· 3 mentions in agenda, transcript
Matched: “AGENDA (Revised 4-7-2025 @ 8:56 AM) Moved HB1063, HB1485 and HB1732 to Regular Agenda House Committee on Revenue and…”
|
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. |
|
HB1732
Act 878
· 3 mentions in agenda, transcript
Matched: “…GENDA (Revised 4-7-2025 @ 8:56 AM) Moved HB1063, HB1485 and HB1732 to Regular Agenda House Committee on Revenue and Taxation M…”
|
TO INCREASE THE AMOUNT OF THE INCOME TAX DEDUCTION ALLOWED FOR A TEACHER'S CLASSROOM INVESTMENT. | Vaught | Notification that HB1732 is now Act 878 |
|
HB1698
· 2 mentions in agenda, chapter
Matched: “…NABLE AVIATION FUEL. REGULAR AGENDA Number Sponsor Subtitle HB1698 Torres TO AMEND THE LAW CONCERNING THE INCOME TAX TREATMENT…”
|
TO AMEND THE LAW CONCERNING THE INCOME TAX TREATMENT OF EMPLOYER CONTRIBUTIONS FOR AN EMPLOYEE'S … | Torres | Died in House Committee at Sine Die adjournment. |
|
HB1699
· 2 mentions in chapter, agenda
Matched: “HB1699 McCullough TO ADD FIREARM SAFETY DEVICES AND FIREARM STORAG…”
|
TO ADD FIREARM SAFETY DEVICES AND FIREARM STORAGE DEVICES TO THE SALES TAX HOLIDAY; AND … | McCullough | Died in House Committee at Sine Die adjournment. |
|
HB1738
· 2 mentions in agenda, chapter
Matched: “…FOR MACHINERY AND EQUIPMENT USED IN CLOSED- LOOP RECYCLING. HB1738 Crawford TO PROVIDE A SALES AND USE TAX EXEMPTION FOR DISAB…”
|
TO PROVIDE A SALES AND USE TAX EXEMPTION FOR DISABLED VETERANS. | Crawford | Died in House Committee at Sine Die adjournment. |
|
HB1750
· 2 mentions in agenda, chapter
Matched: “…ROVIDE A SALES AND USE TAX EXEMPTION FOR DISABLED VETERANS. HB1750 Cavenaugh TO REPEAL THE ARKANSAS CORPORATE FRANCHISE TAX AC…”
|
TO REPEAL THE ARKANSAS CORPORATE FRANCHISE TAX ACT OF 1979; AND TO MAKE CONFORMING CHANGES. | Cavenaugh | Died in House Committee at Sine Die adjournment. |
|
HB1804
· 2 mentions in agenda, chapter
Matched: “…FRANCHISE TAX ACT OF 1979; AND TO MAKE CONFORMING CHANGES. HB1804 Ray TO AMEND THE LAW CONCERNING THE LEVY OF THE GROSS RECEI…”
|
TO AMEND THE LAW CONCERNING THE LEVY OF THE GROSS RECEIPTS TAX, AS AFFIRMED BY … | Ray | Died in House Committee at Sine Die adjournment. |
|
HB1828
· 2 mentions in chapter, agenda
Matched: “HB1828 Breaux TO CREATE A SALES AND USE TAX EXEMPTION FOR INSPIRAT…”
|
TO CREATE A SALES AND USE TAX EXEMPTION FOR INSPIRATION POINT CENTER FOR THE ARTS, … | Breaux | Died in Senate Committee at Sine Die adjournment. |
|
HB1857
· 2 mentions in agenda, chapter
Matched: “…X EXEMPTION FOR INSPIRATION POINT CENTER FOR THE ARTS, INC. HB1857 L. Johnson TO AMEND THE LAW CONCERNING THE COLLECTION OF SA…”
|
TO AMEND THE LAW CONCERNING THE COLLECTION OF SALES AND USE TAX ON THE SALE … | L. Johnson | WITHDRAWN BY AUTHOR |
|
HB1862
· 2 mentions in chapter, agenda
Matched: “HB1862 J. Mayberry TO AMEND THE INCOME TAX CREDIT AND THE INCOME T…”
|
TO AMEND THE INCOME TAX CREDIT AND THE INCOME TAX DEDUCTION RELATED TO MAINTAINING, SUPPORTING, … | J. Mayberry | Died in House Committee at Sine Die adjournment. |
|
HB1881
· 2 mentions in chapter, agenda
Matched: “HB1881 Ennett TO ADD MENSTRUAL DISCHARGE COLLECTION DEVICES TO THE…”
|
TO ADD MENSTRUAL DISCHARGE COLLECTION DEVICES TO THE LIST OF ITEMS EXEMPT FROM SALES AND … | Ennett | Died in House Committee at Sine Die adjournment. |
|
HB1904
· 2 mentions in agenda, chapter
Matched: “…EXEMPT FROM SALES AND USE TAX DURING THE SALES TAX HOLIDAY. HB1904 Lundstrum TO AMEND THE PENALTIES IMPOSED FOR FAILURE TO COM…”
|
TO AMEND THE PENALTIES IMPOSED FOR FAILURE TO COMPLY WITH THE ARKANSAS TAX PROCEDURE ACT. | Lundstrum | Died in House Committee at Sine Die adjournment. |
|
HB1922
Act 881
· 2 mentions in chapter, agenda
Matched: “HB1922 Maddox TO AMEND THE CONSOLIDATED INCENTIVE ACT OF 2003; TO…”
|
TO AMEND THE CONSOLIDATED INCENTIVE ACT OF 2003; TO CREATE AN INCOME TAX CREDIT FOR … | Maddox | Notification that HB1922 is now Act 881 |
|
HB1932
· 2 mentions in agenda, chapter
Matched: “…ATE; AND TO ENCOURAGE CORPORATIONS TO RELOCATE TO ARKANSAS. HB1932 McCollum TO AMEND LAWS CONCERNING THE CORPORATE FRANCHISE T…”
|
TO AMEND LAWS CONCERNING THE CORPORATE FRANCHISE TAX; TO REPEAL THE ARKANSAS CORPORATE FRANCHISE TAX … | McCollum | Died in House Committee at Sine Die adjournment. |
|
HB1935
Act 882
· 2 mentions in agenda, chapter
Matched: “…OF 1979; AND TO REQUIRE AN ANNUAL REPORT FOR CORPORATIONS. HB1935 Eaves TO CREATE A MODERNIZATION AND AUTOMATION TAX CREDIT T…”
|
TO CREATE A MODERNIZATION AND AUTOMATION TAX CREDIT TO ENCOURAGE INVESTMENT BY EXISTING BUSINESSES WITHIN … | Eaves | Notification that HB1935 is now Act 882 |
|
HB1970
· 2 mentions in agenda, chapter
Matched: “…COURAGE INVESTMENT BY EXISTING BUSINESSES WITHIN THE STATE. HB1970 Beaty Jr. TO AMEND THE LAW CONCERNING THE PREPAYMENT OF SAL…”
|
TO AMEND THE LAW CONCERNING THE PREPAYMENT OF SALES TAX; AND TO INCREASE THE THRESHOLD … | Beaty Jr. | Died in House Committee at Sine Die adjournment. |
|
HB1971
· 2 mentions in agenda, chapter
Matched: “…RESHOLD FOR RETAILERS WHO ARE REQUIRED TO PREPAY SALES TAX. HB1971 Beaty Jr. TO AMEND THE REQUIREMENTS CONCERNING THE INFORMAT…”
|
TO AMEND THE REQUIREMENTS CONCERNING THE INFORMATION THAT SHALL BE PROVIDED TO A CITY OR … | Beaty Jr. | Died in House Committee at Sine Die adjournment. |
|
HB1972
· 2 mentions in agenda, chapter
Matched: “…OR COUNTY BY THE DEPARTMENT OF FINANCE AND ADMINISTRATION. HB1972 M. McElroy TO CREATE A SALES AND USE TAX EXEMPTION FOR THE…”
|
TO CREATE A SALES AND USE TAX EXEMPTION FOR THE HELENA WEST HELENA FUTURE LEADERS … | M. McElroy | Died in House Committee at Sine Die adjournment. |
|
SB408
Act 696
· 2 mentions in agenda, chapter
Matched: “…HELENA WEST HELENA FUTURE LEADERS YOUTH SPORTS ASSOCIATION. SB408 B. Johnson TO PROVIDE AN INCOME TAX EXEMPTION FOR CERTAIN P…”
|
TO PROVIDE AN INCOME TAX EXEMPTION FOR CERTAIN PAYMENTS BY THE UNITED STATES DEPARTMENT OF … | B. Johnson | Notification that SB408 is now Act 696 |
|
SB494
Act 717
· 2 mentions in agenda, chapter
Matched: “…IN PAYMENTS BY THE UNITED STATES DEPARTMENT OF AGRICULTURE. SB494 J. Bryant TO REDUCE THE NUMBER AND TYPES OF PERMITS ISSUED…”
|
TO REDUCE THE NUMBER AND TYPES OF PERMITS ISSUED BY ARKANSAS TOBACCO CONTROL; AND TO … | J. Bryant | Notification that SB494 is now Act 717 |
|
SB495
Act 718
· 2 mentions in agenda, chapter
Matched: “…PERMIT UNDER THE ARKANSAS TOBACCO PRODUCTS TAX ACT OF 1977. SB495 J. Bryant TO AMEND DEFINITIONS USED UNDER THE ARKANSAS TOBA…”
|
TO AMEND DEFINITIONS USED UNDER THE ARKANSAS TOBACCO PRODUCTS TAX ACT OF 1977; AND TO … | J. Bryant | Notification that SB495 is now Act 718 |
|
HB1015
· 1 mention in agenda
Matched: “…STMENT. DEFERRED BILLS Page 2 of 4 Number Sponsor Subtitle HB1015 D. Garner TO AMEND THE INDIVIDUAL INCOME TAX LAWS; AND TO C…”
|
TO AMEND THE INDIVIDUAL INCOME TAX LAWS; AND TO CREATE AN INCOME TAX CREDIT FOR … | D. Garner | Died in House Committee at Sine Die adjournment. |
|
HB1016
· 1 mention in agenda
Matched: “…AND TO CREATE AN INCOME TAX CREDIT FOR DEPENDENT CHILDREN. HB1016 Ennett TO CREATE A SALES AND USE TAX EXEMPTION FOR MENSTRUA…”
|
TO CREATE A SALES AND USE TAX EXEMPTION FOR MENSTRUAL DISCHARGE COLLECTION DEVICES; TO CREATE … | Ennett | Died in House Committee at Sine Die adjournment. |
|
HB1018
· 1 mention in agenda
Matched: “…E TAX EXEMPTION FOR CERTAIN ITEMS RELATED TO BREASTFEEDING. HB1018 Hudson TO CREATE THE STRONG FAMILIES ACT; AND TO CREATE AN…”
|
TO CREATE THE STRONG FAMILIES ACT; AND TO CREATE AN INCOME TAX CREDIT FOR EMPLOYERS … | Hudson | Died in House Committee at Sine Die adjournment. |
|
HB1019
· 1 mention in agenda
Matched: “…ROVIDE PAID FAMILY AND MEDICAL LEAVE FOR CERTAIN EMPLOYEES. HB1019 D. Garner TO CREATE THE AFFORDABLE CHILDCARE ACT OF 2025; T…”
|
TO CREATE THE AFFORDABLE CHILDCARE ACT OF 2025; TO CREATE AN INCOME TAX CREDIT FOR … | D. Garner | Died in House Committee at Sine Die adjournment. |
|
HB1021
· 1 mention in agenda
Matched: “…COME TAX CREDIT FOR EMPLOYER-OPERATED CHILDCARE FACILITIES. HB1021 D. Garner TO CREATE THE EARLY CHILDHOOD EDUCATION WORKFORCE…”
|
TO CREATE THE EARLY CHILDHOOD EDUCATION WORKFORCE QUALITY INCENTIVE ACT; AND TO CREATE AN INCOME … | D. Garner | Died in House Committee at Sine Die adjournment. |
|
HB1026
· 1 mention in agenda
Matched: “…TIAL PROPERTY UNDER ARKANSAS CONSTITUTION, ARTICLE 16, § 5. HB1026 A. Collins TO CREATE THE ARKANSAS PROMISE ACT; AND TO CREAT…”
|
TO CREATE THE ARKANSAS PROMISE ACT; AND TO CREATE AN INCOME TAX CREDIT FOR TUITION … | A. Collins | Died in House Committee at Sine Die adjournment. |
|
HB1076
· 1 mention in agenda
Matched: “…E TAX CREDIT FOR CERTAIN EARLY CHILDHOOD EDUCATION WORKERS. HB1076 Hudson TO CREATE THE CARING FOR CAREGIVERS ACT; AND TO PROV…”
|
TO CREATE THE CARING FOR CAREGIVERS ACT; AND TO PROVIDE AN INCOME TAX CREDIT FOR … | Hudson | Died in House Committee at Sine Die adjournment. |
|
HB1116
· 1 mention in agenda
Matched: “…FOR EXPENSES INCURRED IN CARING FOR CERTAIN FAMILY MEMBERS. HB1116 Ray TO CREATE THE REMOTE AND MOBILE WORK MODERNIZATION AND…”
|
TO CREATE THE REMOTE AND MOBILE WORK MODERNIZATION AND COMPETITIVENESS ACT; AND TO PROVIDE INCOME … | Ray | Died in House Committee at Sine Die adjournment. |
|
HB1190
· 1 mention in agenda
Matched: “…ED TO CERTAIN REMOTE AND MOBILE EMPLOYEES AND NONRESIDENTS. HB1190 Vaught TO CREATE AN INCOME TAX EXEMPTION FOR TEACHERS. HB12…”
|
TO CREATE AN INCOME TAX EXEMPTION FOR TEACHERS. | Vaught | Died in House Committee at Sine Die adjournment. |
|
HB1203
· 1 mention in agenda
Matched: “…1190 Vaught TO CREATE AN INCOME TAX EXEMPTION FOR TEACHERS. HB1203 Underwood TO PROTECT ARKANSAS TAXPAYERS FROM A TAX TO COLLE…”
|
TO PROTECT ARKANSAS TAXPAYERS FROM A TAX TO COLLECT TAXES. | Underwood | Died in House Committee at Sine Die adjournment. |
|
HB1216
· 1 mention in agenda
Matched: “…FITS RECEIVED BY LAW ENFORCEMENT OFFICERS AND FIREFIGHTERS. HB1216 Long TO CREATE THE FREE MARKET ZONES ACT; AND TO EXEMPT A B…”
|
TO CREATE THE FREE MARKET ZONES ACT; AND TO EXEMPT A BUSINESS LOCATED IN AN … | Long | Died in House Committee at Sine Die adjournment. |
|
HB1366
· 1 mention in agenda
Matched: “…TO PROTECT ARKANSAS TAXPAYERS FROM A TAX TO COLLECT TAXES. HB1366 Ennett TO CREATE AN INCOME TAX CREDIT FOR QUALIFIED STORM S…”
|
TO CREATE AN INCOME TAX CREDIT FOR QUALIFIED STORM SHELTERS. | Ennett | Died in House Committee at Sine Die adjournment. |
|
HB1388
· 1 mention in agenda
Matched: “…O CREATE AN INCOME TAX CREDIT FOR QUALIFIED STORM SHELTERS. HB1388 Vaught TO EXEMPT CERTAIN STORAGE SERVICES FROM SALES TAX; A…”
|
TO EXEMPT CERTAIN STORAGE SERVICES FROM SALES TAX; AND TO EXEMPT THE SERVICE OF FURNISHING … | Vaught | Died in House Committee at Sine Die adjournment. |
|
HB1404
· 1 mention in agenda
Matched: “…URT FROM SALES TAX, AS AFFIRMED BY REFERRED ACT 19 OF 1958. HB1404 C. Cooper TO CREATE A TAX CREDIT FOR CONTRIBUTIONS TO A PRE…”
|
TO CREATE A TAX CREDIT FOR CONTRIBUTIONS TO A PREGNANCY RESOURCE CENTER. | C. Cooper | Died in House Committee at Sine Die adjournment. |
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HB1435
· 1 mention in agenda
Matched: “…AX CREDIT FOR CONTRIBUTIONS TO A PREGNANCY RESOURCE CENTER. HB1435 Achor TO AMEND THE LAW CONCERNING INCOME TAX CREDITS FOR CH…”
|
TO AMEND THE LAW CONCERNING INCOME TAX CREDITS FOR CHILD CARE; TO AMEND THE INCOME … | Achor | Died in House Committee at Sine Die adjournment. |
|
HB1438
· 1 mention in agenda
Matched: “…LICENSED CHILDCARE PROVIDERS; AND TO DECLARE AN EMERGENCY. HB1438 Cavenaugh TO CREATE AN INCOME TAX CREDIT FOR TAXPAYERS SIXT…”
|
TO CREATE AN INCOME TAX CREDIT FOR TAXPAYERS SIXTY-FIVE AND OLDER IN AN AMOUNT EQUAL … | Cavenaugh | Died in House Committee at Sine Die adjournment. |
|
HB1464
· 1 mention in agenda
Matched: “…QUAL TO THE TAXPAYER'S PROPERTY TAX PAYMENT ON A HOMESTEAD. HB1464 Vaught TO CREATE A SALES AND USE TAX EXEMPTION FOR PARTS FO…”
|
TO CREATE A SALES AND USE TAX EXEMPTION FOR PARTS FOR AND REPAIR OF AGRICULTURAL … | Vaught | Died in House Committee at Sine Die adjournment. |
|
HB1469
· 1 mention in agenda
Matched: “…IGIBLE STUDENT AT A PUBLIC INSTITUTION OF HIGHER EDUCATION. HB1469 Beaty Jr. TO CREATE THE BROADBAND EXPANSION AND EFFICIENCY…”
|
TO CREATE THE BROADBAND EXPANSION AND EFFICIENCY ACT; AND TO CREATE A SALES AND USE … | Beaty Jr. | Died in House Committee at Sine Die adjournment. |
|
HB1472
· 1 mention in agenda
Matched: “…IPMENT USED IN PRODUCING BROADBAND COMMUNICATIONS SERVICES. HB1472 Beaty Jr. TO CREATE A SALES AND USE TAX EXEMPTION FOR PARTS…”
|
TO CREATE A SALES AND USE TAX EXEMPTION FOR PARTS PURCHASED TO REPAIR AGRICULTURAL EQUIPMENT … | Beaty Jr. | Died in House Committee at Sine Die adjournment. |
|
HB1500
· 1 mention in agenda
Matched: “…RTS FOR AND REPAIR OF AGRICULTURAL EQUIPMENT AND MACHINERY. HB1500 Beaty Jr. TO ENHANCE ECONOMIC COMPETITIVENESS BY REPEALING…”
|
TO ENHANCE ECONOMIC COMPETITIVENESS BY REPEALING THE THROWBACK RULE. | Beaty Jr. | Died in House Committee at Sine Die adjournment. |
|
HB1501
· 1 mention in agenda
Matched: “…E ECONOMIC COMPETITIVENESS BY REPEALING THE THROWBACK RULE. HB1501 Beaty Jr. TO ADOPT FEDERAL INCOME TAX LAW REGARDING DEPRECI…”
|
TO ADOPT FEDERAL INCOME TAX LAW REGARDING DEPRECIATION AND THE EXPENSING OF PROPERTY; AND TO … | Beaty Jr. | Died in House Committee at Sine Die adjournment. |
|
HB1538
· 1 mention in agenda
Matched: “…SSETS TO THE AMOUNT ALLOWED UNDER FEDERAL LAW. Page 3 of 4 HB1538 Ray TO AMEND THE LAW CONCERNING THE NET OPERATING LOSS INCO…”
|
TO AMEND THE LAW CONCERNING THE NET OPERATING LOSS INCOME TAX DEDUCTION; AND TO INCREASE … | Ray | Died in House Committee at Sine Die adjournment. |
|
HB1540
· 1 mention in agenda
Matched: “…ARD PERIOD FOR THE NET OPERATING LOSS INCOME TAX DEDUCTION. HB1540 J. Mayberry TO AMEND THE INCOME TAX CREDIT AND THE INCOME T…”
|
TO AMEND THE INCOME TAX CREDIT AND THE INCOME TAX DEDUCTION RELATED TO MAINTAINING, SUPPORTING, … | J. Mayberry | Died in House Committee at Sine Die adjournment. |
|
HB1665
· 1 mention in agenda
Matched: “…SUPPORTING, AND CARING FOR AN INDIVIDUAL WITH A DISABILITY. HB1665 Wardlaw TO REPEAL THE CREDIT ALLOWED AGAINST THE INSURANCE…”
|
TO REPEAL THE CREDIT ALLOWED AGAINST THE INSURANCE PREMIUM TAX FOR ACCIDENT AND HEALTH COMPREHENSIVE … | Wardlaw | Died in House Committee at Sine Die adjournment. |
|
HB1670
· 1 mention in agenda
Matched: “…ED ON THE SALARY AND WAGES OF THE EMPLOYEES OF THE INSURER. HB1670 L. Johnson TO CREATE THE PRECEPTOR TAX INCENTIVE PROGRAM; A…”
|
TO CREATE THE PRECEPTOR TAX INCENTIVE PROGRAM; AND TO PROVIDE INCENTIVES FOR CERTAIN MEDICAL OR … | L. Johnson | WITHDRAWN BY AUTHOR |
|
HB1671
Act 1007
· 1 mention in agenda
Matched: “…ARE LEARNING TO BECOME MEDICAL OR COUNSELING PROFESSIONALS. HB1671 L. Johnson TO AMEND THE LAW CONCERNING THE GROSS RECEIPTS T…”
|
TO AMEND THE LAW CONCERNING THE GROSS RECEIPTS TAX; AND TO CREATE A GENERAL SALES … | L. Johnson | Notification that HB1671 is now Act 1007 |
|
HB1674
· 1 mention in agenda
Matched: “…X EXEMPTION FOR SALES TO QUALIFIED NONPROFIT ORGANIZATIONS. HB1674 L. Johnson TO CREATE AN INCOME TAX CREDIT FOR CONTRIBUTIONS…”
|
TO CREATE AN INCOME TAX CREDIT FOR CONTRIBUTIONS TO CERTAIN RURAL HOSPITAL ORGANIZATIONS; AND TO … | L. Johnson | WITHDRAWN BY AUTHOR |
|
HB1687
· 1 mention in agenda
Matched: “…ERY AND PARTS AND SERVICES PURCHASED TO REPAIR A GRAIN BIN. HB1687 K. Moore TO PROVIDE THAT A WATER AUTHORITY IS EXEMPT FROM A…”
|
TO PROVIDE THAT A WATER AUTHORITY IS EXEMPT FROM ALL EXCISE TAXES. | K. Moore | Died in House Committee at Sine Die adjournment. |
|
HB1775
· 1 mention in agenda
Matched: “…L PROPERTY AFTER A SALE OR OTHER TRANSFER OF REAL PROPERTY. HB1775 Lundstrum TO PROHIBIT THE SEPARATE VALUATION AND ASSESSMENT…”
|
TO PROHIBIT THE SEPARATE VALUATION AND ASSESSMENT OF AN ACCESSORY DWELLING UNIT FOR PURPOSES OF … | Lundstrum | Died in House Committee at Sine Die adjournment. |
|
HB1787
· 1 mention in agenda
Matched: “…IDE THAT A WATER AUTHORITY IS EXEMPT FROM ALL EXCISE TAXES. HB1787 Warren TO PROVIDE AN INCOME TAX EXEMPTION FOR CERTAIN RETIR…”
|
TO PROVIDE AN INCOME TAX EXEMPTION FOR CERTAIN RETIREMENT BENEFITS RECEIVED BY LAW ENFORCEMENT OFFICERS … | Warren | Died in House Committee at Sine Die adjournment. |
|
HB1822
· 1 mention in agenda
Matched: “…TE FRANCHISE TAX, AND THE ELECTIVE PASS-THROUGH ENTITY TAX. HB1822 Underwood THE OVERTIME BUT NOT OVERTAXED ACT. Page 4 of 4”
|
THE OVERTIME BUT NOT OVERTAXED ACT. | Underwood | Died in House Committee at Sine Die adjournment. |
|
HB19
· 1 mention in transcript
Matched: “…ssue was common to all centers was the increased food cost. HB 19-20 is a bill that addresses that helps prevent food insecur…”
|
Pre-2017 bill | ||
|
HB1910
· 1 mention in chapter
Matched: “HB1910 Lundstrum TO ALLOW A DEDUCTION FOR CERTAIN QUALIFIED BUSINE…”
|
TO ALLOW A DEDUCTION FOR CERTAIN QUALIFIED BUSINESS EXPENSES UNDER THE INCOME TAX ACT OF … | Lundstrum | Died in House Committee at Sine Die adjournment. |
|
SB530
Act 701
· 1 mention in chapter
Matched: “SB530 B. Davis TO AMEND THE ARKANSAS WOOD ENERGY PRODUCTS AND FOR…”
|
TO AMEND THE ARKANSAS WOOD ENERGY PRODUCTS AND FOREST MAINTENANCE INCOME TAX CREDIT. | B. Davis | Notification that SB530 is now Act 701 |
Machine transcript
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- October 2, 2026
Representative Lane Jean
Unverified
0:23
Lane Jean, state representative 99, Madam Chairman. You're recognized. Thank you. This is a bill that we got out of the house on 91 votes in the, but the Senate has old days we used to say they sanitized it, uh, they, all they did was take out uh the, the buyback. Uh, that the state was required to do an 80% on these tax credits, so the state is out of it, but that's, that's what the, that's what the amendment does. Any questions?
Any question members? Saying none. Make a motion to pass as amended. We have a motion Dumas is appended. I mean, do pass as amended. It is too early in the
Speaker 10
1:10
morning for me. All right. We need to adopt the amendment.
OK, that's a motion to adopt amendment. That's what I have. All in favor say aye.
With that, you have a motion to pass as amended
Representative Lane Jean
Unverified
1:28
1303 as amended. All in favor say
aye. Our polls say nay, congratulations you Madam Chair. Thank you members of the
committee. Alright, members, um, the next bill we're going to vote on, there's 3 bills that we've already heard that we're just going to vote on, we're not going to have a presentation again. Um, this is the first one is gonna be HB 1732 and for the to remind everyone, this is the
one on the teachers, uh, credit for the classroom expenses. And do we have any discussion? This can D and
Representative David Ray
Unverified
2:06
I answer questions about it. Sure. Paul, can you go
to the end of the table, please? And if you will
introduce yourself for the record, please. Paul Geering DFA.
Representative David Ray
Unverified
2:27
Representative Ray, you're recognized. Yeah, thank you, Madam Chair. um, Mr. Gehring, I guess I was just curious,
uh, did, did, um, when we heard this bill presented in committee, I was trying to remember when we last changed the law on this. I thought we changed it in 2021 from $250 deduction to
a $500 deduction. Is that, am I remembering that correctly? I believe you, you are remembering that correctly, Representative and so this bill
changes it to 1000. That's correct. So that's 1000 per
Teacher It can all teachers take this deduction or is it just public school teachers or how does it work? This is
Speaker 30
3:10
a preschool, elementary or secondary education teacher um would be eligible for this exemption. I'm sorry, deduction. OK, is there? I
Representative David Ray
Unverified
3:18
know the sponsor's not here, but is there any sort of data on how many teachers, I know teachers routinely will. by a classroom expenses from their own funds, but
$1000. Do we have any sense of how many teachers spend that
amount of money on classroom expenses out of their own pocket. DFA did take a look at the actual return data to to arrive at the fiscal impact
Speaker 30
3:41
for this particular bill in terms of doing a drilling down the data to see exactly how many teachers are maximizing the full amount of deduction. I don't believe we have that information for the committee, but we certainly can go back and see how many possibly are maxing out the deduction to the current rate. Do you, do you have an idea of How many take the deduction.
We, we can certainly get that information for you. OK, we're not gonna have it before the vote though, um, I'm
Representative David Ray
Unverified
4:10
sorry. Yeah, um. OK, and then Let's see, I had one other question. I'll let Representative Ry ask his. I can't remember what it was. Representative Ry recognized. Thank you, Mr. Chairman.
Representative Ry
Unverified
4:23
Paul, let me ask you this. On all these receipts up to $1000 do they have to show with receipts. Yes, under Arkansas
Representative David Ray
Unverified
4:29
law, a taxpayer does have to retain
Speaker 30
4:35
proof of entitlement of a deduction. They don't send in their receipts with their return. They just need need to maintain adequate records to in case there is an audit uh to verify that the um The teacher actually made the expenditures that qualified for the deduction. Thank you, Paul. Thank you, Mr. Chairman. Members, any other questions? Seeing
no thank you, Paul. Thank you. Members with that, do
we have a motion? What's the will of the committee?
Motion to pass. All in favor say aye. A poll say nay. Congratulations, Representative Archer bill has passed. With that members we're gonna go down and we're
going to take a vote on HB 1485. This is one that we have heard earlier. It is the one dealing
with the veterans cemeteries. And with that, do we have any discussion on the bill? Any questions?
Seeing none, what is the will of the committee? Motion to pass. We have a motion to pass. All in favor say aye. Po say nay, congratulations, Representative Brown, your bill has passed. The next one that we've heard prior is going to be HB 1063, which is represented of Mayberry's about the deductions for people with disabilities, um, members, do we have any discussion on the bill? say none. Do we have
any questions? Representative E you recognize, oh,
OK. Any questions? Representative Eaton you recognized. to move too fast.
We have a motion to pass all in favor say aye poll say nay, congratulations, Representative Mayberry, your bill has passed. Um, with that, we're going to jump up because they have a member that's got to present another bill, um, which is gonna be HB 1702 representative Wooldridge, if you'll go down to the end of the table and if you'll introduce yourself for the record. And Just for the committee, this is
Representative Jeremy Wooldridge
Unverified
6:41
one that we cannot take a vote on. Good morning, Chairman Committee Jeremy Wooldridge State Representative District one. You're recognized you, ma'am. House Bill 1702 is a bill to amend the Arkansas Code 26-52-402 and Arkansas code 2653-114 by including machinery and equipment used to reclaim post-use materials in a closed
loop recycling process and um I've got a lot of notes here to talk about, um, kind of what that looks like. This is a bill that is driven out of my district um we've got some manufacturers in my district that participate in this. I know the uh Arkansas Pollution Prevention Act encouraged manufacturers to utilize the closed loop recycling uh process, what this bill aims to do basically is close the gap where that's used at the end of the process. So if it's used at the end of the manufacturing process, it's
taxable. If it's used at the beginning of the next manufacturing process. It appears to be tax exempt and that's what this bill attempts to do. I understand that um you all aren't taking a vote today. I just wanted to present. that for your consideration and I'm happy to try to answer any questions.
Thank you, Representative Wooldridge. Members, any questions? Representative Ray, you're recognized. Thank you, Madam
Representative David Ray
Unverified
8:07
Chair. Um, Representative, I guess I'm just not familiar with a closed loop circular process,
what type of manufacturing uses this process and you just described it a little bit, right, uh, thank
Representative Jeremy Wooldridge
Unverified
8:19
you, Representative, different, different manufacturers. There's a manufacturer of plastics in my uh district that utilizes this and there are other manufacturers that use this in an effort to uh to catch and consume that waste. And again, like I said, my understanding and I'm no. expert by any means, but my understanding is that if this is if this falls to the end of the, the manufacturing process, it's taxable if it the exact same
machinery, the exact same equipment is used at the beginning of the next process then that machinery is tax exempt, so that's, I'm just trying to tie those two sections together and apply the same credit to the same machinery. OK, so this would be a business input. Right, OK, all
Speaker 56
8:59
right. Any other questions, members? Seeing then, would you
like to close for your bill? I'm closed and would appreciate your consideration
Representative Jeremy Wooldridge
Unverified
9:10
at the proper time. All right. Thank you, Representative. I appreciate
your presenting. Thank you, ma'am. Thank you. With that members, uh, we're going to jump back up. And um, We're gonna hear representative McClure, which is HB 1920, um, and this is one that we can take a vote on. And Representative McClure, if you will actually introduce yourself and you'll be recognized. We have we have an amendment. We have an amendment first, sorry.
Representative Rick McClure
Unverified
9:46
That will need to adopt. Rick McClure District 29, so get it signed now. Oh, we gotta have it signed. none of us inside.
Speaker 71
11:08
you Representative McClure, would you like to present your amendment? Yes,
Representative Rick McClure
Unverified
11:20
the amendment is just adding co-sponsors and Madam Chair. We've
heard the amendment. We have a motion to adopt amendment. we have a motion to adopt amendment. All in favor say aye. poll say nay, congratulations, you're a men, you're amendment
is adopted, you can present your bill as amended. Thank
Representative Rick McClure
Unverified
11:41
you, Madam Chair. Uh, this will take a couple of minutes so you can get into what the subject matter is about. Last year around this time,
I was notified by the Central Arkansas Developmental Council, a long term senior center operator that they would no longer be willing to renew their contracts to operate 6 centers in my part of the state, not all of them in my district, but in my part of the state. So after 30 years of holding those contracts. Benton Bryant
Malverne Arkadelphia Gurdon, Glenwood, Murfreesboro, and Mount Ida would be included in that one decision. As you can imagine, that caused statewide media attention. Local elected officials were asking many, many questions. Hundreds of seniors were asking questions. But for most of the state representatives, we had very few answers. We quickly realized that we not only had a local problem but potentially a statewide problem. Fortunately in Hot Spring County and Saline County, we had good local support.
After reviewing financial statements from CADC and the centers visiting with our regional area agency on aging several times, meeting with representatives from our two congressional districts, which would be uh Congressman Hill and Congressman Westerman, both our centers and senators and talking to DHS I realized that we did not have a quick fix. The glaring issue was common to all sinners was the increased food cost.
HB 1920 is a bill that addresses that helps prevent food insecurity. As you've heard, Arkansas leads the nation in food and security. Over the past 10 years, funding for nutritional programs has remained flat except for a varied one-time grants, I primarily what we call COVID money. Nutritional programs in both 2016 and 2025 received roughly 19 million. From 20 to 16 to 2025, no increase. The problem is that the money
doesn't go as far today due to inflation. The average cost of a meal in 2016 was $6 but today it's $8 and in investing with many of the center directors, they say it's probably closer to $10 out of their center for Meals on Wheels. So if any of us took our budget from 2016 to the grocery store and expected to come out with what we were getting uh in 2016, we would be shocked that we're going to come out with very little, so we have an issue. There were one time grants for the last couple of years for the
providers to deliver 3.1 million meals. It's my understanding that this year that projection will be only 2.1 million with the biggest cut to home delivered meals, meals on wheels, some of our most needy and vulnerable citizens. If you do the math, that's a cut of about 19,000 meals a week. To make ends meet, providers are cutting the number of days for prepared meals or and or providing or resorting to less
desirable but affordable frozen meals for home delivery meals. Those of you that are familiar with Meals on Wheels or if I ever followed one, seen a truck, or been a part of it, know that most of these people, this is the only social contact they had. They were trying to keep them an independent living so they're not having to go to a nursing home, which is a whole different cost area. And now we're just handing them in some cases a frozen dinner. Well, that's better than nothing, but for Arkansans that have been here for 40 years and
paying taxes, I think they're due more respect. Most areas
have a waiting list for home delivered meals and we're adding to our
own food insecurity crisis but not addressing it. Contractors like hospitals or nonprofits who carry out nutritional services as part of their charitable missions are reportedly backing out due to excessive financial loss. As a result, the charitable subsidies provided by these organizations are no longer available and puts a greater strain on available resources. In my experience, in my
particular district, I approached our regional hospital, which is a part of a larger chain of hospitals that I thought could handle it. They wouldn't even and wouldn't even listen to the conversation. Today, 42 of our 139 centers are being run directly by area agency on aging because contractors are not willing to bid to bid on it. With baby boom boomer population aging, which I know I don't look like it, but I am a part of that. The demands on our programs are growing.
Someone said, are you having self-interest. Well, it's over the hill. I see it coming. Without assistance, we expect the problem to get worse. So when will help come from federal funds? We simply don't know. HB 1920 would use surplus funds. Over a two-year pilot period to provide for senior centers with funding for home delivered and prepared meals at a local center. After the RASA is fully funded.
The next 50 million is distributed to the highway department. With the next million 150 million going to general revenue allotments reserve. So this is way down the line after RSA is completed and there's excess bombs. Then after that we start taking some funds and we would use those funding this need. The bill restricts the funding to food. Only 50% to be used for raw food, 50% directly for operating or 50% for operating costs of delivery.
To prepare it very little left for overhead. It also establishes, and I think this is an important part. I match program for nonprofits, the cities or counties that want to provide food services for the elderly. What I am finding most of the cities and counties want to do something, but they can't carry the whole load. So this provides a matching grant program. So Madam Chair, I know there's gonna be a lot of questions and uh um I guess we can start
entertaining questions and then bring people down to help answer those questions, so. Thank you,
Representative McClure. Any questions, members? Representative Ray, you're recognized you recognize thank you
Representative David Ray
Unverified
18:11
Mr. Chairman. Uh, Representative McClure, now does this cover the whole state? OK, and how much money are we talking
Representative Rick McClure
Unverified
18:17
here, sir? There is a limit that it would cap at 7 million. Thank you.
Speaker 87
18:27
Thank you Madam. Any other questions, members? Representative Ja you're recognized. Thank you, Madam Chair. Representative McClure is
Representative Lane Jean
Unverified
18:40
if this is something that we've done in the past and gotten some one time money for. And you're trying to do a permanent fix to it if the revenue's there, is that what
Representative Rick McClure
Unverified
18:48
we're trying to do? No, this will be, this would be a 2 year program and of course the reports would go back to normal agencies and legislative council at the end of the two-year
program will rely on legislative counsel to give a recommendation of what we need to do in the next session. So this is not open-ended, sir. OK, thank you. Representative
Representative Carlton Wing
Unverified
19:09
Wayne, you're recognized. Yeah, just a quick question on the fiscal impact, it says the state share of the program cannot exceed $20,000 but it's a $7 million program. I'm obviously reading something incorrectly. Could somebody help me with that? Could you go down to the end of the table. OK.
Speaker 30
19:32
And if you'll introduce yourself again for the record. Paul Gehring DFA. And let me just find that language in the bill just one
Speaker 92
19:45
moment. It's well I'm, I'm looking at the green sheet just
Representative Carlton Wing
Unverified
19:49
a little bit over halfway down it says um. Talks about the grant match program and this is the state chair of the program cannot exceed $20,000.
Speaker 36
20:08
Yeah, yeah. Represent it's OK, we'd like to, oh, I'm sorry, that, that's language that's actually in the bill on Page. 3 Blinds 9 and 10. The state's share of the county, city, or nonprofit organization
Representative Rick McClure
Unverified
20:42
program shall not exceed $20,000. So that That's on the matching grant per grant per grant. OK. So nobody's gonna be asking for a million of this on a matching ground. That sounds good. Just, there is
Representative Carlton Wing
Unverified
20:59
a filter there. I wanted to make sure we were, we were good and clear on that. Thank you very much. OK,
members, any other questions? Saying none. I don't have
anybody signed up to speak for or against the bill. Would anyone like to speak for or against the bill? Seeing none. Oh, yes, you
want to speak for or against the bill. OK, if you go to the end of the table. And introduce yourself and tell us who you represent and you'll be recognized. I'm Luke
Speaker 101
21:36
Mattingly. I'm CEO of CareLink and I'm representing the area Agency on Aging Association. And we are in favor of this
bill, um, funding for our senior centers, for your senior centers has been flat without a special one-time funding since 2016. In fact, this year we're a little less than 2016 overall funding with federal and state match, uh, federal and state monies combined and as you know, everybody's experienced. Tremendous inflationary factors over the past decade, uh between labor costs, inflation, and your senior senators need this money to feed older people. There is
not a region in the state that does not have a waiting list for Meals on Wheels right now. Not a single region, so we encourage you to please help our seniors today and we're very excited as well about the opportunity for grant program for people who aren't subject to all the wonderful rules that we have under the federal and state money. So we're very excited about that. provision as well. Excuse me, I ran up here. I was a little late, um, but, uh, we are in favor of this and we employ you to help your local senior centers. They really,
really, really need this money to feed senior hungry seniors. Thank you for your testimony.
Any questions, members? Seeing none, thank you. Anyone else in the audience would like to speak for or against the bill. Seeing none, Representative McClure, would you like
to close for your bill? Yes, Madam Chair, I'm closed, and
Representative Rick McClure
Unverified
23:10
motion to pass at the proper time. A motion to pass as amended
amended. OK, we have a motion to pass as amended. Any discussion on the motion? Saying none, what
is, we have a motion do pass as amended all in favor say aye. A poll say nay. Congratulations, your bill has passed. Thank you. Um,
with that members. We're gonna skip down. I know we're all over the board today. We're just trying to get bills done. So we're gonna vote, we're gonna hear SB 529 that I'm gonna present and this is one that we
can vote on and Representative Ray, if you'll take over for me. What did you see? All right, committee, this
Representative David Ray
Unverified
24:13
is Senate Bill 529. Representative Kavanaugh, you can introduce yourself for the record, and
you'll be recognized to proceed. Thank you, Frank Cavanaugh, State Representative District 30, um, these are some just some changes to the um independent Tax Appeals Commission Act, um, it puts in a definition of a small claims and how that is actually handled. It goes in and it changes, um, who can actually sit on the commission. It gives a new definition of. what's to qualification. And it talks about someone having a professional has 5
years of experience in the area. It takes out some unneeded language. It talks about ways to withdraw the um motion. It's really just some cleanup language, but mostly dealing with small claims and small claims is less than $10,000.10 yeah, $10,000. And with that, I would take any questions. All right, you've heard an explanation of the bill or there
Representative David Ray
Unverified
25:13
are questions from the committee. Representative Kavanaugh, um, my
question, I guess would be, are these, are these changes that were brought to us by DFA, are they, is there consensus around these changes or well, I
guess. Where did they originate, the recommendations to change these Where did they originate, the recommendations to change this, Where
Speaker 36
25:37
did they originate, the recommendations to change these so the Tax Appeals Commission Act, there was discussion. When the bill was originally
Speaker 30
25:44
being drafted and discussed for how this would work, uh, a small
claims process was considered um when the
Speaker 36
25:53
original legislation was enacted to 2 sessions ago, but as the commission has started to um implement the Tax Appeals commission. There was a desire to consider the ability for a small claims process to be added. So this is a language that it's my understanding, the Department of Inspector General who oversees the tax appeal. Commission prepared this
Speaker 23
26:15
language. OK. Yeah, that makes sense. OK.
Paul can speak to that there's no physical impact because it's just changing the wording, so
Speaker 36
26:29
that, that is correct. So these, these changes to the Tax
Speaker 30
26:32
Appeals Commission Act are procedural in nature. They don't govern the statutes that levy taxes that provide for deductions. It's so there is no fiscal impact to the state as a result of these changes. No I take any questions, any other questions from the committee?
Representative David Ray
Unverified
26:54
OK, seeing none, uh, let's see if we have anybody signed up to speak for or against this bill. We have nobody signed up. Am I missing anybody? OK. Um, with that, uh, Representative Kavanaugh, would you like to close for your bill? Thank you. I'd like
to close from a bill and make a motion to pass. All right, members, there's a motion to pass.
Representative David Ray
Unverified
27:14
Is there any discussion on the motion? Seeing none, all those in favor say aye. All those opposed say no.
All right, Senate Bill 529 is passed. And Next on
the list, do we have Representative Maddox in the room. No. Do we have Representative Landstrom in the room OK. Representative Eaton, you've got some bills. Are you ready? You wanna run down there real quick. And see
where I'm at and I'll be right back. All right, yeah, you go ahead, you can go ahead
Speaker 122
27:48
and make your way to the end of the table.
Representative David Ray
Unverified
27:56
Um, we've got, you've got Senate Bill 408. You've got Senate Bill 494. And Senate Bill 495, all of which it indicates here we can take a vote on. Is there one
you want to start with? Let's start with 494. OK, Senate Bill 494 Committee is what we're going to take up. Representative Eaton, you could, if you could um introduce yourself
for the record and your guests as well, and then you'll be recognized to proceed.
Speaker 127
28:26
Representative James Eaton, District 26. Uh, Cameron Coker, staff attorney for Arkansas Tobacco Control. Get it started on the
Representative James Eaton
Unverified
28:53
SB 494. What we're looking to do here, uh.
Baco consolidation that we want to consolidate and reduce some permits on this bill. That's what we're looking to do, and I'll let my colleague explain further. Thank you, Representative Eaton. Yes, so this bill,
Speaker 130
29:11
what it would what it would do is it would call consolidate the three manufacturers permits that we currently issue through tobacco control that each costs $500 annually into one manufacturer's permit with a $500 annual fee, uh, this product, this permit would cover all the products we
regulate, um, it would, and this bill also eliminates the um Exclusive permit for e-liquids and uh vapor products that allows a permit holder to act as uh a manufacturer, a wholesaler, and a retailer all at the same time and I'd be happy to take any questions. All right, committee, you've heard an explanation of
Representative David Ray
Unverified
29:51
the bill. Are there questions from members of the committee. Representative Lynch, you recognize.
Representative Roger D. Lynch
Unverified
30:01
I don't, I don't see a fiscal impact in this uh. Synopsis. Fiscal impact would
Representative James Eaton
Unverified
30:09
be, did you, it should be on that your Senate Bill 494. Yeah. Got any
Representative Roger D. Lynch
Unverified
30:19
idea about how much money we're talking about. $1000 annually. For the whole state? Yes sir. OK All right, Representative Wing,
Speaker 138
30:32
you have a question. Yeah, so Well this bring in more
Speaker 139
30:37
or less revenue. By consolidating. Representative Waing right now, um,
Speaker 130
30:41
all the permit holders we have would be consolidated into one permit so it wouldn't change, there wouldn't be any um change in revenue that that uh that the uh state is currently receiving from that because all three of these permits would be consolidated into one, so all the permit holders would be getting this new consolidated permit and it would still be a $500 annual fee.
Speaker 139
31:03
So they are they currently having to pay 500 times 3? No, sir, so they, it's split up between
Speaker 130
31:09
tobacco products and alternative nicotine products, and other one covers vapor and e-liquids only, and another one is for uh manufacturers who just uh manufacture cigarettes, so they have one of those 3 right now and um just consolidating them all into one would be no change for
Speaker 139
31:22
them. It would still cost them $500 annually. OK, so they're not having to, if they're selling more than one of those products.
Representative Carlton Wing
Unverified
31:33
They're not having to buy two licenses for the 2 different products and now they would just have to buy one. That's correct. OK.
Representative David Ray
Unverified
31:48
OK All right, so in, so in your opinion, this is gonna, is this designed to simplify the permitting process, is that, tell me, tell me what the benefit of this legislation Representative
Speaker 130
31:57
race, so right now we have 3 manufacturers' permits and we're streamlining
them all, excuse me, into one permit it streamlined the uh uh process for our administration, we would have only one permit to issue for manufacturers instead of 3, and again it would um there would be no change. uh to the business uh practices of our manufacturers, they just, they just have one, they could just get one permit that's available for all of our products. All right. Are there any other questions from the committee? OK. Um
Representative David Ray
Unverified
32:33
uh seeing nobody sign up to speak for or against the bills or anybody from the audience that were missing. OK. Um, with that
Representative Eaton, you may, uh, you recognize the clothes for
Representative James Eaton
Unverified
32:45
your bill. Thank you, Mr. Chair. Basically this is a consolidation bill. Like I said, we're going from 3 to 1 permit. I don't think there's going to be fiscal impact except the $1000 we're going to lose for
one company, so with that I would, uh, I move for a due pass. All right, Representative Eaton
Representative David Ray
Unverified
33:04
has made a motion to pass. Is there any discussion on the motion? Seeing none, all those in favor say aye. All those opposed say no. All right, the bill is passed. Uh, Representative Eaton, would you like to present your other bill, Senate Bill 495. Yes. OK. Um, if you'd like to introduce yourself again for the record and your
Speaker 142
33:25
guests, you may proceed. Thank you, Mr. Chair. James Eaton, District 26 in the House. Uh,
Representative James Eaton
Unverified
33:31
Cameron Coker again, staff attorney for Arkansas Tobacco Control.
So as we look at Senate Bill 495. What, what this bill is looking to do, it adds a small requirement to the information that shall appear on an invoice for the sale of tobacco vapor and alternative nicotine or e-liquid
Speaker 130
33:53
products. That's correct, Representing is correct, um, what we're, what this bill does, it does two things. The first thing it does is it adds a requirement that permit holders um when they are conducting their transactions on their invoices that the buyer and seller's permit number uh
needs to appear on each invoice as well as their their loc their address that they are permitted by Arkansas Tobacco Control with that that information needs to appear on all those invoices. What the second part of this bill does is it allows our auditors when we conducting investigations into seizures of seized uh tobacco products for which taxes have not been paid. We do that for criminal and administrative purposes. It just allows our otters, uh, when they're making those calculations to use uh More sources than they currently
are allowed to under the law right now they're only allowed to use the prices that appear on the invoices when invoices are not seized. However, they have to uh use the price that uh manufacturers, um. That manufacturers sell these products at, but the problem is sometimes we don't have the information of where these products are manufactured of all this bill would do, would allow us to look at different sources of similarly situated manufacturers, wholesalers and retailers to get those prices in order to calculate the unpaid
taxes for administrative and criminal penalties. And I'd be happy to take
any questions. members, are there any questions? prescription to write
Representative David Ray
Unverified
35:27
you're recognized. OK, I, I apologize if you already covered this. I was, I got a little bit distracted while you were presenting. Can, can you
just tell me what, what problem exists that we're trying to solve with this bill,
Speaker 130
35:37
um, as far as the adding the permit
numbers and the addresses to the invoices. I'll start with that issue. The issue we're running into is we have a lot of retailers, um, retailers are required by law to purchase their products from permitted wholesalers or other permitted retailers in order to. then sell to consumers, so the issue we're having is we have a lot of out of state wholesalers who are not permitted in this state who are coming in and selling to these retailers and our retailers are basically being tricked into buying products from them, um, when
that happens, that opens up our retailers to administrate the penalties. It also hurts the business of our wholesalers who sell to these retailers normally, it hurts their business as well because we have these out of state companies who are not permitted selling untaxed products into the state. And the state's losing out on revenue and our retailers are finding themselves open to um potential penalties so requiring this information to be put on these invoices would assure these retailers that they are purchasing from permitted wholesalers and um it actually
ensure the wholesalers as well that they are selling to permanent retailers because they're also required to
Speaker 129
36:47
sell to permitted retailers. OK. Representative Eaton, have
Representative David Ray
Unverified
36:49
you heard any feedback from retailers about this
Speaker 142
36:51
bill? Are they in support of it or no known opposition. CA And I've actually I've heard nothing actually. OK, all right, thank you. And Representative Ray, I can answer, speak to that
Speaker 128
37:02
as well. We've heard from both the retailers association as well as the wholesalers association, they have no opposition to these bills. Members, any other questions?
See none. I don't have anybody signed up to speak for or against the bill. Is there anyone in the audience who would like to speak for or against the bill. See none Representative Eaton, would you like to close
Representative James Eaton
Unverified
37:28
for your bill? I'm closed for the bill, Madam Chair. Thank you, and I would, uh,
move to pass. OK, members, we have a motion to pass. Any discussion on the motion? All in favor say aye, poll say nay. Congratulations, you passed your bill. Thank you. With that, members,
we're going to go and we're going to hear two bills from Representative Lundstrom. The first one we're gonna hear is going to be um HB 1910 and representative. Remember we have your amendment. So if you'll present your amendment first. Thank you, I'd forgotten about that. That is to add Senator Petty
Representative Robin Lundstrum
Unverified
38:07
as a co-sponsor. Members are passing out that amendment.
Would you like to move for a motion of amendment? Move to
pass. We have a motion. Amendment, all in favor say aye. polls say nay. Representative Lundstrom, you are recognized to present your bill as amended. Thank you, ma'am. Thank you for
Representative Robin Lundstrum
Unverified
38:39
your indulgence and letting me come in, um, I may regret that next door is gonna be a food fight, so I may want to stay here, um. House Bill 1910, basically allows the deduction for
certified qualified business expenses under the Income Tax Act. Basically would match the federal government, um, think of a qualified taxes if you make $100,000 as a business. Currently in the federal code, you'd take $20,000 off and be taxed at $80,000. This would simply match the federal code. The difference or in the state of Arkansas we have to, and the federal code too. small businesses, sole proprietors, partnerships, as corporations. This would affect
our self-employed small businesses. I understand there's an impact statement of about 103 million um To this, my question is, we have been overpaying as businesses for years and years. At some point we've got to let them off the mat and we never asked the question, what impact does the tax have on the business? We always ask the state budget question, which we should, but what cost is it to the business? And also we need to streamline our tax code and make it match the federal to make it easier on our businesses.
That's the bill. Thank you, Representative Blunstrom. Uh, members, any questions? Seeing none. Um, members, I don't have anybody signed up for or against the bill, one of the audience to speak for or against. Seeing none representative Lunson, would you like to close for your
Speaker 154
40:14
bill? I'm closed and I would recommend that we put this
Representative Robin Lundstrum
Unverified
40:18
in for further study. I realized that due to the end of the session and the fact that we can't afford this right now
makes it difficult for this bill to pass. Thank you, thank you
I appreciate it. The next bill we have for you is going to be HB 1904. Alright, and this is another one that we want will be for discussion only. OK, thank you, um, HB
Representative Robin Lundstrum
Unverified
40:42
1904 is about the fines that we ask citizens to pay when they don't pay their taxes, which I would agree there needs to be a fine, um, currently it's 5% each month. And then it goes to 10% in
aggregate, but it can also go up to 35%. We've collected and I think there's an impact statement on here, and correct me if I'm wrong, 103 or excuse me, 11 million. And fines and fees from citizens. I think that's excessive. I know they've been foyered in the past and can't get the information that they need to get. If we can tell, if you can tell me we're taking 11 million from our businesses, that's too much. And so I would like to lower that and take that 35% to cap it at 10%.
You still owe, and you should pay, but we shouldn't be more expensive than um some of these paycheck folks that we've been getting on to them for years and here we're the ones doing it. Payday lenders, I'm sorry,
Speaker 154
41:43
that's who I was referring to. No problem. Members, do we have any questions for Representative
Lindstrom? I have one. Do you know what other states do around us
how they look at their penalties or anything, ma'am, no ma'am. That's a good question,
but I do not. Paul, would you happen to know that? OK, so I'm just curious
how we, we look at around other states, um, in my clothes, I
Representative Robin Lundstrum
Unverified
42:06
have a gift for all of you. Arkansas puts out a legislative tax handbook. I know you're dying to read this. It's, it's tempting information, but actually it's very important. This is the amount of taxes and fees that we put out, um, and BLR put together a great book for us. I think it would deserve all of us taking a time to review this and
look at ways that we can either reduce the taxes or the fees or uh put them together and make it easier on the businesses to pay their taxes, but not just keep nickel and dimming them to death. So with that, I have a gift. I would say thank you, but I'm not really sure about that.
But anyway, yes ma'am, if you can't sleep, this
Representative Robin Lundstrum
Unverified
42:47
ought to do it or this will raise your blood pressure, which it did mine. So I wanna thank BLR for getting this for me, and I will be glad to pass them out to you. that
Speaker 154
43:01
I'm closed, OK, I appreciate you bringing it forward,
um, members, thank you for presenting your bill. Thank you, ma'am. Thank you for your time. Members at this time, we're gonna take a short 10-minute recess so that we can see what the other committees are doing. and we can get the other presenters down here. And with
Unknown speaker
59:24
Members, we're gonna come back from recess if everybody will take their seats.
All right Members were back from recess. Appreciate y'all all waiting with that representative Eves has 2 bills to present. The first one is going to be HB 3 1935. He has an amendment to present first and we need to adopt it.
Ready. Representative Avis, if you'll introduce yourself for the record, you'll
Representative Les D. Eaves
Unverified
1:00:48
be recognized. Representative Lee's District 58 members, you have an amendment here that is striking some language that inadvertently
got um missed on the first draft of the bill and it's also substituting or excuse me, adding some language. Take that back. It's substituting language
um that the uh Applicant would have to receive a or the department would have to do a positive cost benefit analysis from the commission. Um, for the project that forms the basis of the business's financial incentive agreement. Uh, that's what the amendment does, and I make a motion to adopt the amendment. Rumors we have a motion adopt amendment
any discussion on the amendment saying no and all in favor say aye. I
say nay, congratulations, your amendment has passed. If you will present your bill as amended, thank you.
Representative Les D. Eaves
Unverified
1:01:35
Thank you committee members, this is an update on a previous
program Arkansas's had for a while. HB 1935 called the modernization and Automation Incentive, um, Arkansas currently has a series of incentive programs that are available for companies that are seeking to move into Arkansas and do business in Arkansas. However, the state does not have adequate incentives for companies that are already here that wish to expand or modernize their existing facilities. So the effect of that is it encourages businesses to make large investments, a lot of
times out of state because there are states that do have programs like this in place already. So just real quick, I know you probably had a long morning. Um, it, it provides for a modernization and automation tax credit for businesses that have been in continuous operation for 2 years. They have to incur a minimum of $25 million in eligible project costs, and that was part of the amendment that you saw. They have to hold a direct sales and use tax permit, um, the project cost include construction of a new plant or facility or the expansion or
modernization of an existing plant or facility. Um, and if the credit is allowed, it's gonna be 5%, excuse me, up to 5% of the eligible product, project costs and the maximum credit that can be used in any year is $2 million unused credits carry forward for 5 years. Um, and they have to maintain the yearly average payroll and employment level during the course of the project and for 24 months following the project's completion because the last thing we want to do is give an incentive to a company that's going to reduce payroll numbers,
um, and I've got, um, Mr. Clint O'Neill that can give you some added information if you so desire. Clint, if
you can introduce yourself for record. Clint O'Neill, executive director, AEDC you
Speaker 166
1:03:20
have any comments you'd like to make? Uh thank
Jay Robertson
Unverified
1:03:25
you for the opportunity. Chairwoman Kevin, you know, the state of Arkansas had a program called InvestArk, which is taken off the books in 2017. It was an investment-based incentive. It had a minimum threshold of $5 million was a statutory program.
And it became the most expensive incentive program that we had. In fact, it still is as it is, is ramping down and we'll be fully off the books in 2 years. Um, it was the right move that the General Assembly made to take vestark off the books the way it was written. This, this program is much different. It's a discretionary program, uh, when we have the opportunity to work with a facility that's uh has multiple manufacturing facilities throughout the country and they're looking at
Making a large investment in one of those, uh, this is an investment-based incentive to encourage them to do that here in Arkansas. So as Representative Eve stated this would be set up in such a way that a company would not be able to automate in a way that they're uh bringing in, uh, you know, robotic technology that takes away jobs but for increased investment, um, would add a tool to our toolbox to help existing Arkansas companies. Thank you.
Members, do we have any questions? Representative McCurry, you recognize her
Representative Rick McClure
Unverified
1:04:53
question Mr. O'Neill, just quickly, uh, modernization usually equals automation during this day and age, um, uh, usually we see a number of FTEs. Can you explain to the committee why
FTEs are not appearing in this change. So we use the
Jay Robertson
Unverified
1:05:10
language of of base payroll, um, you're right, we're we're looking for um.
Scenarios in which there's much increased capacity, not just increased technology that would lead to a reduction in FTEs, uh. Sometimes it would result in higher paying jobs, but fewer jobs, but we're looking at a at a base payroll, uh, that would be uh required throughout the program
Speaker 170
1:05:40
plus 24 months. Any other questions,
members? Representative Ray, you're recognized.
Representative David Ray
Unverified
1:05:52
OK. Representative Eaves, I apologize, this bill has a 19 in front of it, so it's not one that
I've really had a chance to thoroughly review that. We, we made the decision to phase out InvestA. Can, can. I know you spoke to this. Can you just repeat what you said. How is this different than
than the credit that we repealed.
Jay Robertson
Unverified
1:06:14
You want to answer that? Yes, sir. It raises the minimum from 5 million up to 25 million.
It reduces the credit from 6.5% down to up to 5%, which would be at at our discretion, you know, sometimes in order to win a project, you might need 2% or or somewhere up to 5%. And then, uh, I, I would say the biggest change from a deal-making standpoint is that it's discretionary rather than statutory. So rather than everyone who hits the eligible investment threshold gets the credits, um, hitting the 25. million ineligible investment um
triggers the potential for up to 5%. So we're looking at everything else that we have in our toolbox with the ability to add up to 5% as a way to to win
Representative David Ray
Unverified
1:07:08
a project. So help, help me. Help explain, can you explain to me why? It's better to have the credit at the discretion of AEDC versus having a defined set of criteria because If we, if we just leave discretion to the agency from my
vantage point, it basically allows you guys to pick and choose which favored companies. Uh, are able to access the credit instead of treating all companies fairly. Like it seems like. We're just basically setting up a system where y'all can play Shark Tank with taxpayer money. Let me answer one thing first and then I'll let um Clint go into it. One of the things that we've
Representative Les D. Eaves
Unverified
1:07:48
added that you'll see in the amendment as this has to have a a positive cost benefit analysis. I'm not sure if that's something that was in best
start, but having significantly higher minimum investment for and I'll give you an example in, in, in the company that I work for, um, we were looking to invest in uh some robotic technologies to help with. improving welding outcomes, and I called um Economic Development Commission, there were no incentives for us to be able to use to um modernize our plant. I have competitors in our industry that I talk to all the time that their state does offer these particular incentives, and they bought exactly what we were looking to buy. So now if I was
looking to bring a plan in from another state and move it into Arkansas and do the exact same thing where plenty of incentives to do that. So to me this bill is going to help. businesses that are already in in Arkansas remain competitive. It's the same argument we've had with a lot of the other incentives we offer like, you know, generally speaking, should we, should the state be involved in giving incentives. There's an argument to say no, but the situation and I talked about it at a meeting this morning, you know, every other state's doing it so we either have to choose to participate in it and do the
best we can for the businesses that we have here and that we want to move here, um, if not, the states that are surrounding us will also do that. But, if you want to answer the second part of his
Jay Robertson
Unverified
1:09:12
question. Yes, sir, and thank you for the question. Representative Ray, I, I would say there's some projects in which a company may have the minimum investment of $25 million. They're also adding payroll. So among all the tools that we have in our toolbox, we may want to add Governor's quick action closing fund. We have a payroll rebate program called Create Rebate. I, I think the advantage to leaving it
discretionary is that there are times when we can win a project with other incentives whereas if it's statutory and a company automatically gets it, you know, perhaps we're we're giving away money that we didn't otherwise have to, um, and as Representative Eves said we're we're taking a look project by project and trying to win those projects with the least amount necessary, uh, also having a positive cost benefit analysis. When you say when a project, what I
Representative David Ray
Unverified
1:09:58
think of when you say when a project is,
there's a business that's looking to locate a facility and you're providing some sort of incentive to get them to. to Arkansas, but my understanding is that this is for businesses that are already located in Arkansas. So help me explain help explain to me what you mean in this context when you say when a project to me what you mean in this context when you say when
Jay Robertson
Unverified
1:10:24
a project uh when uh an expansion projects to an expansion project to have a company make a favorable
decision to move forward with this investment in Arkansas. Oftentimes, a company would be looking at whether they invest in their Arkansas facility. Or whether they invest in a facility out of state, so to win a project, I mean, when they go through this uh competitive analysis among states that they decide to expand in Arkansas. And I want to say something also for the record, when I was talking about the company that I worked
Representative Les D. Eaves
Unverified
1:10:56
for, this building no way would affect anything we're doing because we would not be
able to make a $25 million investment in that particular program, so this bill has no effect on the business that I
work for. Thank you, Representative McAlinden you recognize her question. OK. Representative
Representative Roger D. Lynch
Unverified
1:11:18
Lynch, you're recognized. So There's only 3 ways to generate wealth, mining, manufacturing, and farming, so you know, I'm all for anything that increased manufacturing. Any other questions, members?
Say none. I don't have anybody signed up
to speak for or against the bill. Is there anyone in the audience would like to speak for or against the bill. See no Representatives, would you like to close
Representative Les D. Eaves
Unverified
1:11:46
for your bill? Yes, I, I did want to say one thing,
um. I believe DFNA will have a revised fiscal impact statement based on this um new positive cost benefit analysis requirement, so that makes it revenue neutral and so when we go to the Senate with this, they'll have updated information
that will show that to be the case. Paul's giving me a thumbs up, thumbs up on
that. So I'm Paul, would you go to the end of the table and please introduce yourself and address the physical
Speaker 36
1:12:22
impact, please. Thank you, Madam Chair. Paul Gehring, DFA, uh, uh, what Representatives just explained about the amendment under the bill. There's going to be a requirement that the investment threshold is raised to 25 million, but also crucially that
the requirement for an incentive agreement for these um To be available for the incentives under this bill, is that going to be subject to an AEDC positive cost benefit analysis, which will be reflected in our revised fiscal impact statement as being revenue neutral. Thank you, Representative Ray, you're recognized.
I, I had another question for
Representative David Ray
Unverified
1:12:57
AEDC, um, I, I see on here it says that Um, uh, a business would be required to return any credits claimed if
the business breaches the agreement. How often do we have businesses that uh failed to Um failed to uphold their end of the bargain in terms of all the parameters that are required to hit on average wage number of employees hired, those sorts of things. I, I don't have a
Jay Robertson
Unverified
1:13:26
percentage that I can give you, but it's um certainly on occasion we have companies whether it's a quick action agreement or a rebate
agreement, a company that we've entered into a financial agreement with that uh oftentimes it's because of the number of jobs created that they committed that they would fall short of or, or in some cases they would reach the goal, but halfway through the the Uh, for most programs it's 10 years that they would not satisfy that on, on job requirements. So, um, it, it certainly happens on occasion and so in those instances, how
Representative David Ray
Unverified
1:14:05
often are you successfully able to
recoup those the, the, the, the benefits that
Jay Robertson
Unverified
1:14:14
they've received most of the time, the, the, the financial incentive agreements are written with uh with, you know, good clawback language and less a company goes out of business, um, and it's just not no longer worth pursuing. We've had a good track record on that. OK. All right, thank you. members, any other questions? See, thank you, Paul
Representative Eams, are you, would you like to close for your
Representative Les D. Eaves
Unverified
1:14:41
bill? Yes, ma'am. Thank you, colleagues. I am closed for the bill and would like to make a motion to pass as amended. Members,
we have a motion to pass as amended any discussion on the motion? Seeing none, all
in favor say aye. A poll say nay. Congratulations your bill has passed. Thank you. And while you're down there, you're gonna present SB 408. Yes ma'am. And mirrors this is one we can take a vote on also. Thank you.
Representative Les D. Eaves
Unverified
1:15:14
Our members the Senate Bill 408 comes to us from Blake Johnson, uh, Senator Blake Johnson, most, you know, he's in the farming industry. This would be similar to what we did for those of you that were here for the um PPP loans. It's, it's the federal government has made these particular payments, uh, tax exempt from federal tax, we're gonna follow the language here and farmers that received these payments, uh, the state will not collect income tax on these, and these payments are made to taxpayers, um, under the
The economic relief payments through the emergency commodity assistance program. This is to help agricultural producers, mitigate the impacts of increased input costs and falling commodity prices for the 2024 crop year. Apparently it's been a pretty tough go for our farmers and so uh when they received these um disaster relief payments and economic aid. I think the last thing the state should do is force them to pay income tax on those payments, and that's what the bill does. Thank you. Members, any questions?
Seeing none, um, I have no one sign to speak for against the bill. Would anyone like to speak for or against the bill? CNN representative, would you like
Representative Les D. Eaves
Unverified
1:16:27
to close for your bill? Yes, ma'am. I'm
closed and I make a motion to pass. Members, we have a motion to pass, uh, any discussion on the motion? Singing none, all in favor say
aye. Opposed say nay. Congratulations, your bill has passed. And with that representative Maddox. You're recognized to go to the
end of the table. And if you will introduce
yourself for the record and you'll be recognized. Thank you, Madam Chair. John Maddox, State Representative
Speaker 183
1:17:18
District 86. Hugh McDonald, Secretary of Commerce. You recognize present your bill. Thank
Representative John Maddox
Unverified
1:17:28
you, Madam Chair. I'll try to be fairly brief. This is, um, I would say very similar to the legislation that you just heard. This is brought from the Commerce Department. So I wanna talk about it for a moment. Um, so this will provide up to 50% income tax credit on the payroll of new full-time permanent employees of a corporate
headquarters that is going to relocate to the state of Arkansas. Um, this will require a positive cost benefit analysis, um, just like the other bill. Um, it provides for a tiered system with specific minimum thresholds for new job creation and average hourly wage. Um, I'll run through through through those real quick tier 1, 300 positions at a at at least 150% of the county or state average tier 2, 250 positions at 125. Tier 3 is 200 positions at 115 and tier 4
is 150 positions at 110. of the county or state average wage. So it's tiered to provide more incentive to go to the um counties and areas that are that are struggling a little more that do not have the income that Northwest Arkansas and the other places have so but obviously anyone can locate any of these places. Um, it requires annual certification and audit by DFNA. There's no carry forward provision. The credits cannot be sold or transferred.
And the payroll requirements must be met within 4 years of the incentive agreement. So, I would just kind of touch on it's my opinion and and visiting with commerce to about this, this would be a very um rarely used tool, um, just because not that many. corporate headquarters are going to likely relocate. However, if we were able to, to win one, it would be a huge win for the state of Arkansas. So this is just another incentive in our arsenal as all this is, and
again, there is no fiscal impact because It requires a positive cost benefit analysis. And with that,
I would, I would allow Mr. McDonald. Uh, thank you, Representative Maddox.
Hugh Mcdonald
Unverified
1:19:34
I, uh, he's done an excellent job of summarizing the bill. Uh, I, I put this in a category of um uh nothing ventured, nothing gained. Um, you know, I, I can, I can tell you that we have not had corporate headquarters relocate to Arkansas, uh, for at least 25
years and so this is something new, something we're gonna try, um, and, um, you know, I A, a company that is, is looking to move. Uh, which they're always looking to move, we would, we would take this um to high cost states, high tax states, high regulation states and if they have enough payroll, they could completely offset their state corporate tax liability for the 1st 5 years of
any agreement, and then of course it would stair step up in your 6 through 10. So it would put us on a even playing field with uh Texas and, and Tennessee, for example, for potentially for 5 years. So it's, it's an idea, something new, and um, you know, we, we want to be able to market it. Thank you.
I actually have a question. So Tennessee and Texas are the surrounding states that actually offer an incentive like
Hugh Mcdonald
Unverified
1:20:55
this? No, they, they, uh, I, I target them because they have 0, 0% tax. OK,
so there's no one with around us with an incentive like this. I'm
Hugh Mcdonald
Unverified
1:21:04
not sure and to be honest, I did not, we did not do the research on who else has got something like this, uh, but, uh, we felt it was something that uh uh we could proactively put in our toolbox and mark it. OK. Is there anything in the incentive
that after the 5 years if they leave. There's some kind of clawback.
Hugh Mcdonald
Unverified
1:21:28
Yes, um, there is, uh, every year there is a uh. I believe they have to be here for 5 years, um, let me see if I can find it.
And, let's see here. The only reason I ask is that if we give them this incentive and they're here for 5 years and then on
Hugh Mcdonald
Unverified
1:22:15
6th year they left. I mean, what did we really accomplished? That's what I'm asking. Yeah, no, it's a good question. Failure to annually certify or recertify payroll figures. Um shall result in a 10% reduction of the earned tax credit. If not claimed within 12 months, um, there is 100% forfeiture of
the earned tax credit if not claimed within 24 months of the end of the tax year. And there was a termination of the financial incentive agreement if initial certification of payroll figures have not been filed with the department within 4 years and my able assistant has said that if they qualified business fails to reach the requisite. This is on page 8, line 31. Uh, if they fail to reach the requisite payroll threshold before the expiration of the period of the extension granted.
The qualified business is liable for the repayment of all incentives previously received by the, by the business. So there is a clawback provision and
that is if they, I guess, is that clawback just for the 5 years, or is it the clawback that in year 6 when their tax liability becomes whatever it might be at that time, and they decide to leave. Is there a clawback? For what they've gotten. I guess here's my concern is
we're gonna give this as an incentive and I understand the incentive, but if they're only gonna stay here for 5 years, we really haven't created long term
wealth for Arkansans that way. And so that's why I'm asking that question. Yeah.
Hugh Mcdonald
Unverified
1:23:54
Jennifer Emerson here. I'm sorry, you're not identify. Hi, good morning. Jennifer Emerson,
Speaker 195
1:24:02
Deputy Director, AEDC. Um, the term of our financial
incentive agreement under this incentive would be for 10 years. So if the company did not have that payroll, say you're 6, you're 7, you're 8, you're 9, it would require that same clawback of repayment of all. of those. The amount that they received. So actually the
time frame is 10 years. On the 11th year, we'll be in the same cliff and they decided to leave, correct? 6 through
Speaker 197
1:24:30
9. They, it's a reduced amount, so it goes down by 20% every year of the
amount of the tax credit.
OK, all right. Uh, thank you, Representative Ray, you're recognized. Thank
Representative David Ray
Unverified
1:24:45
you, Madam Chair. So, Representative Maddox, I, I've
heard the phrase, the phrase was mentioned in the presentation, nothing ventured, nothing gained. Um But That's probably from the perspective of the state. So my, my question is, how does, how does something like this not
give An unfair advantage to new businesses over existing businesses. Some of which might even be the competitor of the new business. Well, I, I'll start with that and then I'll, I'll start with that
Representative John Maddox
Unverified
1:25:21
and I'll allow anyone who wants to jump in to assist, but I mean, certainly Representative Reagan I've had lengthy discussions about these, um, but we do offer incentives all the time to new businesses, to existing businesses. It's unfortunately, part of the
landscape of the competition with the surrounding states and all the states, um, I think the most important thing to remember in this bill is no company has relocated their corporate headquarters in 25. At least 25 years, so if this occurs, it's going to be on a very, very limited basis, and it's gonna be a massive win if a company from California with 300 employees moves their business and their employees to our state and invest that in our state. That would be my thought is, you
know, I wish that there were no incentives. I wish Texas didn't do it and Mississippi didn't. I wish, but that's just not reality. That's not the game. I think this is great because it's not gonna cost us anything, um. And we may never use it frankly, but if we have a chance to bring someone big here um to any area of our state, I think it'd be a great win but I'll let anyone else follow up on
Speaker 200
1:26:31
that. I think uh well well said, um. You know, there's, there's incentives every state offers
Hugh Mcdonald
Unverified
1:26:39
some kind of incentive and uh and there's always existing businesses that do not get the incentive, so, um, there's really nothing new in, in terms of the landscape of offering new incentives, it's just a different
type of incentive that we haven't focused on in the past, so to that to that point,
Representative David Ray
Unverified
1:26:57
how many other states have this
this incentive? This new mover type incentive. We did not do the research of what other
Hugh Mcdonald
Unverified
1:27:10
states do have uh an incentive similar to this,
so I can't answer that question, Representative Ray. OK,
Representative David Ray
Unverified
1:27:16
so, uh, and Representative Maxox, I appreciate you responding to my question, but I don't think you ever spoke to the, the actual question that I asked, which is, do you feel that it's, it would be unfair to an existing business in Arkansas. To give this sort of benefit. to a new business coming into the state when those two businesses may be direct competitors. Well, that, that's a great
Representative John Maddox
Unverified
1:27:40
question. I apologize if I didn't answer it directly. I guess what I meant to say is, um, In a perfect world, no, I don't love it. I guess it could create some sort of an unfair advantage if this was ever used, but again, when we're courting other businesses now in every other state we're offering them incentives to come that small businesses or businesses now don't get. So we're already doing it. This is just one more bullet in the arsenal to get someone, hopefully some company to relocate their entire
corporate headquarters here and hasn't happened over 25 years, um, so it's not something that I think going to be doing every day. I wish we would, um, I think that would be amazing for our economy. So does it provide an advantage, I guess it does, just like all the other incentives we give to bring new business here. That's how
Representative David Ray
Unverified
1:28:31
I answer that, OK. I, I just have one more question, and it's. Um The last bill that we heard that was an incentive that's um basically discretionary, um, is
I mean, there's parameters here for various types of ears and counties. I'm not sure I understand
what counties are which tier. I suspect my county is not in uh. It is probably in tier, I don't know, I'm probably tier one. I would suspect your county is tier one.
Representative John Maddox
Unverified
1:28:58
I do not know that, but I would suspect with the demographics of your county would be tier one. I don't, I don't know that for sure. So are these,
Representative David Ray
Unverified
1:29:07
are these, uh, is this incentive gonna
be at the discretion of AEDC or if you
meet these qualifications, are you going to get it? Jennifer.
Speaker 122
1:29:24
Yeah, sorry, it is discretionary, that is correct.
Representative David Ray
Unverified
1:29:28
OK, so I'm sorry, that just prompts another question. So Howard, how are you going to utilize your discretion? you're just going to decide which companies are worthy of getting this tax break and which ones are unworthy like how do you, how do you determine which ones?
Politically favored enough to get this preferable treatment and which one is unfavored. I, I'm sorry, I would start with
Representative John Maddox
Unverified
1:29:53
it requires a positive cost benefit analysis, so that's number one. So if it doesn't provide a positive cost benefit analysis for the state of Arkansas, then it doesn't qualify. And then they um We'll look at all of the other qualifications and issues and determine if it is best for the state of Arkansas. That's my opinion, but I, I need to let the experts speak about that. Yeah, cost benefit analysis,
Hugh Mcdonald
Unverified
1:30:18
they have to meet the thresholds, the employee thresholds, um, and the payroll thresholds uh to meet, to meet the qualifications, that's how it
would be evaluated. But not necessarily everyone that meets those thresholds will
Representative David Ray
Unverified
1:30:29
get it. You have to meet the thresholds to be eligible, right? I know that there's a certain bar you have to clear to be eligible, but my question is, if you clear that bar, do you get it? Or is it still up to the discretion of The commission
Speaker 205
1:30:51
Assuming it passes the cost-benefit analysis, they would get it, yes.
Representative Rick McClure
Unverified
1:31:04
Thank you, Representative McClure, you're recognized. Uh, this is one of those, uh, glass half empty, glass half full. I try to look
at it glass half full. I don't look at it as so much of what we're losing is what we're gaining, and this is would all be new revenue if I'm reading this correct. So while the, while the corporation itself would qualify for that, to do that in a tier
one county, you're gonna have to have 300 FTEs at 150% of the average wage. That is a very, very steep climb for almost any any business. The other side is that the with the payroll they're gonna be generating a tremendous amount of taxes, uh, not just in income taxes but also sales taxes and everything else. I'm assuming that's all taken
into the analysis calculation. Is that correct? All right, thank you. Thank you. Members, any other
questions? Representative Wing, you're recognized. Thank you, Madam Chair. Just a
Representative Carlton Wing
Unverified
1:31:57
quick question. I've been involved in some incentives, bills in the past and the kinds of bills that uh
generate the most interest are the kinds where the state of Arkansas receives the benefit before the money goes out, um, and, and I recognize this is structured a little bit differently. How confident are you in that? With this
Speaker 207
1:32:23
Appreciate the question. Um, no, you're correct, there would be some benefit that would go out initially, um, with the
Speaker 195
1:32:30
full clawback of if that payroll is not sustained through that full period of 10 years that that whole amount that was received under those credits would be clawed back. I That is kind of the, the fail-safe for, for the possibility of the company either leaving or, you know, going out of business or whatever, um, but if of course if they went out of business
it'd be a little bit harder to recoup those funds, but if they're corporate headquarters at a level that can meet these terms. We're gonna have to assume that we're gonna be able to claw that money back, should they not do what they signed on the dotted line to do and just in case in
Representative Carlton Wing
Unverified
1:33:09
the advent of a bankruptcy or something like that, does the state of Arkansas become a secured creditor to get in line with those uh to get at least recoup as much as possible. We would not be secured. It would be
Speaker 207
1:33:24
Um, at that point it would, I would probably have to lean on Department
Speaker 195
1:33:28
of Finance and Administration because they would be handling the clawback on on this particular incentive, but um as how they handle clawbacks in a bankruptcy situation for any of our incentives that that they administer. OK, thank you. Representative McAlinden, you're recognized. Thank you, Chairman. Thank you. Um, so I
Representative Mindy McAlindon
Unverified
1:33:46
do have a, a kind of echoed representative raised concerns that we are favoring one group over another. I know it's been a while since someone's been here, but to his
point, if someone does come in to the state that already has a competitor here, then you, you are advantaging them pretty significantly over their competitors. So I know you've answered that question. I just want to echo that. The other question that I had was, as we look at the employees and you said there was a way to claw back if they leave, um, or. They're no longer qualified but let's say they have 150 employees in tier 4, and when they recertify every year, as I understand it, if they have less than 150 when they recertify, they lose that certification. Can they then come back two
Speaker 195
1:34:29
years later with 150 employees and jump back into the system. Now the way I understand it, it would Completely nullified the the agreement. So if they were not able to do so, they can ask for an extension and we can grant an extension to give them um 2 years to meet the threshold, um, at any time, yes. And how many times can they ask for that extension? Just once. That's how we currently have for extensions and other um incentives is they can ask for a one-time extension. OK, OK, thank you.
Members, any other questions? Seeing none. I don't see anybody signed up to speak for or against this bill. Is there anybody the audience would like to
speak for against the bill. Seeing no Representative Maddox, would you like to close for your bill? Yes, thank you, Madam Chair
Representative John Maddox
Unverified
1:35:20
and thank you committee for all the questions. That was a, that was a really good discussion. I would, I would just say again, I, I don't want to belabor the point, um. We've had no one move their corporate headquarters to our great state and at least 25
years, um, if this happened, it would be very limited and very, very rarely used, but it would be a significant win, um, for the state of Arkansas to get a corporate headquarters relocated here. um, and again, it does require a positive cost benefit analysis to, to qualify for that. So with
that, I would appreciate a good vote. Do you make a motion I'm, I make a motion to pass. OK. We have a motion to
mass do pass, do mass. It's a long
morning already. Do pass any discussion on the motion. Representative Ray,
Representative David Ray
Unverified
1:36:13
you're recognized. Thank you, Madam Chair. I'll be brief. I, I think, you know, the point was made several times during the presentation that we haven't had a corporate headquarters move here in 25 years. I
think it's probably worth diving into that question of why, why haven't we had a corporate
headquarters move here in 25 years when, you know, you can just watch CNBC or um read the paper and they're moving all
the time um to various states. I, I think. These, these incentives, these credits, all of these things are just sort of a band-aid solution, and we're we're just treating the symptoms. We're not doing enough to treat the problem and the problem is our overall business climate has to improve, and I think that's probably something that most of the people in this room agree with, um, I just think rather than taking this approach, um, we would be much better served
to really focus in a laser-like way. On improving every aspect of our business climate instead of these what I what I
consider sort of band-aid solutions. So I, I'll, I'll be a no vote. Any other discussion on the motion. Saying none I represent McLennon you're
recognized. Am I? Thank you. Thank you, Chairman. Yeah, so I actually agree with Representative Ray. I
Representative Mindy McAlindon
Unverified
1:37:31
think as we watch where corporate headquarters are going. A lot of them are going to states that have the zero
income tax, that have um the strong schools which we are currently building and we're really working on improving a lot of what our state needs to do to attract those companies here and so I am a no vote as well. May I join in on
Representative John Maddox
Unverified
1:37:53
the discussion? You're a member, yes you can. That's what I thought. Thank you. So I would argue, I completely agree with the first facet that um represent McAloon said, um, we need to be more business friendly. Representative Ray said, I'm sorry, um, and get rid of our income tax and get rid of our personal income tax and our
corporate income tax, and this is going to move the ball closer to that if we were fortunate enough to land a corporate headquarters here. That's people moving here. That's jobs here, that's people paying the sales tax. Which is, I think unfortunately to set the best tax that there is that gets us closer to getting rid of the corporate income tax and the personal income tax, which makes Arkansas more business friendly and a better business climate, so I would argue that this actually incentivizes us to get more business friendly, although I do
want to say for the record, I think in the last 10 years we've done a great job of making Arkansas much more
business friendly, and I'm very proud of the work that we've done, so thank
you. Members in the other session representative or clearly
Representative Rick McClure
Unverified
1:38:56
recognized Ray, I agree with you that we need to work on a long-term solution about being more business friendly. That's the exact reason they have brought this, um. Having worked some of these deals, these are not unusual. This is a little packaged, a little bit different. These
businesses are going to go wherever there is the best package. I don't necessarily like all the individual packages, but I like the end result and uh so it again, it's a glass half full, glass half empty. I choose to look
half full and see what we can get instead of what we might lose. I'd be a yes. Any other members? See none. OK, members
all in favor say aye. oppose say nay. Congratulations, your bill has
passed. Thank you. With that, members, we only have one bill left to hear today, which is SB 530. Is there anybody here with SB 5:30 that would like to present SB 5:30. All right, members with that, um, we will adjourn, but also be sure and watch your calendar. We're scheduled for
tomorrow because we do anticipate some other bills coming from the Senate, so please be sure and watch your calendar and see where we're gonna be tomorrow morning. With that, we're adjourned.
Agenda
CONCUR IN SENATE AMENDMENT
Number Sponsor Subtitle
HB1303 Jean TO CREATE THE SUSTAINABLE AVIATION FUEL INCENTIVE ACT; AND TO CREATE AN INCOME TAX CREDIT RELATED TO SUSTAINABLE AVIATION FUEL.
REGULAR AGENDA
Number Sponsor Subtitle
HB1698 Torres TO AMEND THE LAW CONCERNING THE INCOME TAX TREATMENT OF EMPLOYER CONTRIBUTIONS FOR AN EMPLOYEE'S MEMBERSHIP IN A HEALTHCARE SHARING MINISTRY OR OTHER MEDICAL COST-SHARING PROGRAM.
HB1699 McCullough TO ADD FIREARM SAFETY DEVICES AND FIREARM STORAGE DEVICES TO THE SALES TAX HOLIDAY; AND TO DECLARE AN EMERGENCY.
HB1702 Wooldridge TO AMEND THE SALES AND USE TAX EXEMPTIONS FOR CERTAIN MACHINERY AND EQUIPMENT USED IN MANUFACTURING; AND TO PROVIDE A SALES AND USE TAX EXEMPTION FOR MACHINERY AND EQUIPMENT USED IN CLOSED- LOOP RECYCLING.
HB1738 Crawford TO PROVIDE A SALES AND USE TAX EXEMPTION FOR DISABLED VETERANS.
HB1750 Cavenaugh TO REPEAL THE ARKANSAS CORPORATE FRANCHISE TAX ACT OF 1979; AND TO MAKE CONFORMING CHANGES.
HB1804 Ray TO AMEND THE LAW CONCERNING THE LEVY OF THE GROSS RECEIPTS TAX, AS AFFIRMED BY REFERRED ACT 19 OF 1958; TO PROVIDE A SALES TAX EXEMPTION FOR UTILITY VEGETATION LINE MANAGEMENT SERVICES.
HB1828 Breaux TO CREATE A SALES AND USE TAX EXEMPTION FOR INSPIRATION POINT CENTER FOR THE ARTS, INC.
HB1857 L. Johnson TO AMEND THE LAW CONCERNING THE COLLECTION OF SALES AND USE TAX ON THE SALE OF A NEW OR USED MOTORBOAT; AND TO PROVIDE FOR THE DIRECT PAYMENT OF SALES AND USE TAX ON A MOTORBOAT SOLD BY A MOTORBOAT DEALER.
HB1862 J. Mayberry TO AMEND THE INCOME TAX CREDIT AND THE INCOME TAX DEDUCTION RELATED TO MAINTAINING, SUPPORTING, AND CARING FOR AN INDIVIDUAL WITH A DISABILITY.
HB1881 Ennett TO ADD MENSTRUAL DISCHARGE COLLECTION DEVICES TO THE LIST OF ITEMS EXEMPT FROM SALES AND USE TAX DURING THE SALES TAX HOLIDAY.
HB1904 Lundstrum TO AMEND THE PENALTIES IMPOSED FOR FAILURE TO COMPLY WITH THE ARKANSAS TAX PROCEDURE ACT.
HB1910 Lundstrum TO ALLOW A DEDUCTION FOR CERTAIN QUALIFIED BUSINESS EXPENSES UNDER THE INCOME TAX ACT OF 1929.
HB1920 McClure TO TRANSFER GENERAL REVENUE TO THE AGING AND ADULT SERVICES FUND ACCOUNT TO BE USED FOR FOOD SERVICES BENEFITING THE ELDERLY; AND TO DECLARE AN EMERGENCY.
HB1922 Maddox TO AMEND THE CONSOLIDATED INCENTIVE ACT OF 2003; TO CREATE AN INCOME TAX CREDIT FOR RELOCATING CORPORATE HEADQUARTERS TO THIS STATE; AND TO ENCOURAGE CORPORATIONS TO RELOCATE TO ARKANSAS.
HB1932 McCollum TO AMEND LAWS CONCERNING THE CORPORATE FRANCHISE TAX; TO REPEAL THE ARKANSAS CORPORATE FRANCHISE TAX ACT OF 1979; AND TO REQUIRE AN ANNUAL REPORT FOR CORPORATIONS.
HB1935 Eaves TO CREATE A MODERNIZATION AND AUTOMATION TAX CREDIT TO ENCOURAGE INVESTMENT BY EXISTING BUSINESSES WITHIN THE STATE.
HB1970 Beaty Jr. TO AMEND THE LAW CONCERNING THE PREPAYMENT OF SALES TAX; AND TO INCREASE THE THRESHOLD FOR RETAILERS WHO ARE REQUIRED TO PREPAY SALES TAX.
HB1971 Beaty Jr. TO AMEND THE REQUIREMENTS CONCERNING THE INFORMATION THAT SHALL BE PROVIDED TO A CITY OR COUNTY BY THE DEPARTMENT OF FINANCE AND ADMINISTRATION.
HB1972 M. McElroy TO CREATE A SALES AND USE TAX EXEMPTION FOR THE HELENA WEST HELENA FUTURE LEADERS YOUTH SPORTS ASSOCIATION.
SB408 B. Johnson TO PROVIDE AN INCOME TAX EXEMPTION FOR CERTAIN PAYMENTS BY THE UNITED STATES DEPARTMENT OF AGRICULTURE.
SB494 J. Bryant TO REDUCE THE NUMBER AND TYPES OF PERMITS ISSUED BY ARKANSAS TOBACCO CONTROL; AND TO CONSOLIDATE SEVERAL PERMITS INTO A SINGLE PERMIT UNDER THE ARKANSAS TOBACCO PRODUCTS TAX ACT OF 1977.
SB495 J. Bryant TO AMEND DEFINITIONS USED UNDER THE ARKANSAS TOBACCO PRODUCTS TAX ACT OF 1977; AND TO AMEND THE DEFINITION OF "INVOICE" AND THE DEFINITION OF "INVOICE PRICE" USED UNDER THE ARKANSAS TOBACCO PRODUCTS TAX ACT OF 1977.
SB529 B. Johnson TO AMEND THE INDEPENDENT TAX APPEALS COMMISSION ACT.
SB530 B. Davis TO AMEND THE ARKANSAS WOOD ENERGY PRODUCTS AND FOREST MAINTENANCE INCOME TAX CREDIT.
Documents
| Title | Type | Pages | Source |
|---|---|---|---|
| Agenda — REVENUE & TAXATION- HOUSE, Apr 7, 2025 | Agenda | 4 | Official source ↗ |
Speakers
Representative Lane Jean
Unverified
Representative Frances Cavenaugh Chair
Unverified
Speaker 10
Representative David Ray
Unverified
Speaker 30
Representative Ry
Unverified
Representative Jeremy Wooldridge
Unverified
Speaker 56
Representative Rick McClure
Unverified
Speaker 71
Speaker 87
Representative Carlton Wing
Unverified
Speaker 92
Speaker 36
Speaker 101
Speaker 23
Speaker 122
Speaker 127
Representative James Eaton
Unverified
Speaker 130
Representative Roger D. Lynch
Unverified
Speaker 138
Speaker 139
Speaker 142
Speaker 129
Speaker 128
Representative Robin Lundstrum
Unverified
Speaker 154
Representative Les D. Eaves
Unverified
Speaker 166
Jay Robertson
Unverified
Speaker 170
Speaker 183
Representative John Maddox
Unverified
Hugh Mcdonald
Unverified
Speaker 195
Speaker 197
Speaker 200
Speaker 205
Speaker 207
Representative Mindy McAlindon
Unverified