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TO TRANSFER GENERAL REVENUE TO THE AGING AND ADULT SERVICES FUND ACCOUNT TO BE USED … | McClure | WITHDRAWN BY AUTHOR |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. |
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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. |
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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. |
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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. |
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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…”
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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…”
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TO AMEND THE LAW CONCERNING INCOME TAX CREDITS FOR CHILD CARE; TO AMEND THE INCOME … | Achor | Died in House Committee at Sine Die adjournment. |
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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…”
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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 |
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This is a quorum. The first thing we're going to take up is a concurment on HB 1303. Representative Jean, if you will introduce yourself and you'll
Representative Lane Jean
Unverified
0:18
be recognized. 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, but the Senate, as old days we used to say, they sanitized it. All they did was take out the buyback that the state was required to do at 80% on these tax credits, so the state is out of it, but that's what the amendment does. Any questions?
Any question, members? Seeing none. Make a motion due pass as amended. We have a motion due pass as amended. I mean, due pass as amended. It
Speaker 10
1:05
is too early in the morning for me. All right. First,
did we already adopt our amendment? We need to adopt the amendment. Okay. We need a motion to adopt amendment. That's what I have. All in favor, say aye. Aye. With that, you have a motion to pass as amended.
Representative Lane Jean
Unverified
1:23
Pass 1303 as amended. All in
favor, say aye. Aye. Opposed, say nay. Congratulations. Thank you, Madam Chair. Thank
you, members of the committee. All right, members, the next bill we're going to vote on, there's three bills that we've already heard that we're just going to vote on. We're not going to have a presentation again. This first one is going to be HB 1732. And to remind everyone, this is the one on the teacher's credit for the classroom expenses.
Representative David Ray
Unverified
1:56
And do we have any discussion? Can DF&A answer questions? Sure. Paul, can you go to
the end of the table, please? And if you will introduce yourself for the record,
please. Paul Gehring, DFA. Representative Ray, you're recognized. Yeah, thank you, Madam Chair.
Representative David Ray
Unverified
2:28
Mr. Gehring, I was just curious, 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 are remembering that correctly, Representative Bray.
And so this bill changes it to $1,000. That's correct. So that's $1,000 per teacher.
Can all teachers take this deduction, or is it just public school teachers, or how does it work?
Speaker 30
3:03
This is a preschool, elementary, or secondary education teacher. would be eligible for this exemption. I'm sorry, deduction. -
Representative David Ray
Unverified
3:13
Okay, is there, I know the sponsor's not here, but is there any sort of data on how many teachers, I know teachers routinely will buy classroom expenses from their own funds, but $1,000, 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
Speaker 30
3:36
to arrive at the fiscal impact for this particular bill. In terms of 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 at the current rate. - Do you
Speaker 38
3:54
have an idea of how many take the deduction? - We can
Speaker 30
4:00
certainly get that information for you. - Okay, we're not gonna have it before the vote though. That's correct, I'm sorry.
Representative David Ray
Unverified
4:07
Yeah, okay, and then, let's see, I had one other question. I'll let Representative Reye ask his, I can't remember what it was.
Representative Ry
Unverified
4:18
Representative Reye, you're recognized. Thank you, Mr. Chairman. Paul, let me ask you this, on all these receipts up
Representative David Ray
Unverified
4:24
to $1,000, do they have to
Speaker 30
4:28
show with receipts? Yes, under Arkansas law, a taxpayer does have to retain proof of entitlement of a deduction. They don't send in their receipts with their return, but they just need to maintain adequate records in case there is an audit to verify that the teacher actually made the expenditures that qualified for the deduction.
Thank you, Paul. Thank you, Mr.
Chairman. Members, any other questions? Seeing none, thank you, Paul.
Thank you. Members, with that, do we have a motion? What is the will of the committee? Motion do pass. All in favor say aye. Aye. Opposed say nay. Congratulations, Representative Vaught, your bill has passed. With
that, members, we're going to 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 veteran 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. Aye. Opposed 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 Representative Mayberry's about the deductions for people with disabilities.
Members, do we have any discussion on
the bill? Seeing none, do we have any questions? Representative Eaton, you're recognized. Okay. Any questions? Representative Eaton, you're recognized. We have
a motion due passed. All in favor, say aye. Aye. Opposed, say nay. Congratulations. Representative Mayberry, your bill has passed. With that, we're going to jump up, because they have a member that's got to present another bill, which is going to be HB 1702.
Representative Woodridge, 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,
Representative Jeremy Wooldridge
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6:42
this is one that we cannot take a vote on. - Good morning, Chairman, Committee. Jeremy Wooldridge, State Representative, District 1. - You're recognized. - Thank 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 I've got a lot of notes here to talk about kind of what that looks like. This is a bill that is driven out of my district. We've got some manufacturers in my district that participate in this. I know the Arkansas Pollution Prevention Act encouraged manufacturers to utilize the closed-loop recycling 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 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 Woodridge. Members, any questions?
Representative David Ray
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8:02
Representative Ray, you're recognized. Thank you, Madam Chair. Representative Woodridge, I guess I'm just not familiar
with a closed-loop circular process. What type of manufacturing uses this process?
Can you just describe it a
Representative Jeremy Wooldridge
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8:14
little bit? Right. Thank you, Representative. different manufacturers. There's a manufacturer of plastics in my district that utilizes this and there are other manufacturers that use this in an effort 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 falls to the end of the manufacturing process, it's taxable. If 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. Okay. So this would be a
Speaker 56
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business input, right? Okay. All right. Any other questions,
members? Seeing none, would you like to close for your bill? I'm closed
Representative Jeremy Wooldridge
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9:05
and would appreciate your consideration at the proper time. All right. Thank
you, Representative. Appreciate your presenting. Thank you, ma'am. Thank you, Committee. With that, members, we're going to jump back up and we're going to hear
Representative McClure, which is HB 1920, 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. And we have an amendment. We have an amendment first, sorry. that we'll need to adopt.
Okay. Rick McClure, District 29. Is it signed? We have to
Representative Rick McClure
Unverified
9:43
get it signed now. Okay, we've got to have it signed.
Unknown speaker
9:51
Yeah, we did get it signed. Okay.
Thank you.
Speaker 71
11:11
Representative McClure, would you like to present your amendment?
Representative Rick McClure
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11:15
Yes, the amendment is just adding co-sponsors, Madam Chair.
We've heard the amendment. Do you have a motion to adopt amendment? Yes. We have a motion to adopt amendment. All in favor, say aye. Aye.
Opposed, say nay. Congratulations, your amendment is adopted. You can present your bill as amended. Thank
Representative Rick McClure
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11:36
you, Madam Chair. 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 six centers in my part of the state not all of them in my district but my part of the state so after 30 years of holding those contracts benton bryant malvern 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 Congressman Hill and Congressman Westerman, both for our centers and
center senators and talking to DHS, I realized that we did not have a quick fix. The glaring issue was common to all centers was the increased food cost. HB 19-20 is a bill that addresses that helps prevent food insecurity. As you've heard, Arkansas leads the nation in food insecurity. Over the past 10 years, funding for nutritional programs has remained flat except for varied one-time grants, i.e. primarily what we call COVID money.
Nutritional programs in both 2016 and 2025 received roughly $19 million. From 2016 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 visiting 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 in 2016,
we would be shocked that we were 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 and are 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 have 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 have. They were trying to keep them in 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 doing 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. 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 on it. With baby 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 RSA is fully funded, The next $50 million is distributed to the Highway Department. With the next million, $150 million going to General Revenue Allotment Reserve. So this is way down the line after RSA is completed and there's excess funds. 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% for operating costs to deliver it, to prepare it, very little left for overhead. It also establishes, and I think this is an important part, a match program for non-profits, 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 going to be a lot of
questions, and I guess we can start entertaining questions and then bring people down to help answer
those questions. Thank you, Representative McClure. Any questions, members? Representative Ray, you're recognized. Ray.
Representative David Ray
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18:06
Ray, you're recognized. Okay. Thank you, Mr. Chairman. Representative McClure, does this cover the whole state? Yes. Okay, and how much
Representative Rick McClure
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18:12
money are we talking here, sir? There is a limit that it would cap at $7 million, John. Okay, sir. Thank you.
Speaker 87
18:20
Thank you, Madam Chair. Any other questions, members? Representative Gene, you're recognized. Thank you, Madam
Representative Lane Jean
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18:35
Chair. Representative McClure, 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
Representative Rick McClure
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18:43
if the revenue is there, is that what we're trying to do? No, this would be a two-year program, and of course the reports would go back to normal agencies and a legislative council.
At the end of the two-year program, we'll rely on legislative council to give a recommendation of what we need to do in the next session. So this is
Representative Carlton Wing
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not open-ended, sir. Okay, thank you. Representative 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?
Paul, could you go down to the end of the table? Okay.
And if you'll introduce yourself again for the
Speaker 30
19:33
record. Paul Gehring, DFA. And let me just find that language in the bill, just
Representative Carlton Wing
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19:44
sheet, just a little bit over halfway down, it says, talks about the grant match program and it says the state share of the program cannot exceed $20,000.
Speaker 36
19:58
Representative Wayne, if it's okay, we'd like to—oh, I'm sorry. That's language that's actually in the bill on page 3, lines 9 and 10. The state's share of the
Speaker 30
20:28
county, city, or nonprofit organization program shall not exceed
Representative Rick McClure
Unverified
20:32
$20,000. So that's on the matching grant. Is that per grant? Per grant. Okay. Yes. So nobody's going to be asking for a million of this on a matching grant. That sounds good. There
Representative Carlton Wing
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is a filter there. Wanted to make sure we were good and clear on that. Thank you very much.
Okay, members, any other questions? Seeing 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? Okay, if you go to the end of the table and introduce yourself, and tell us who you represent, and you'll
Speaker 101
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be recognized. - I'm Luke Mattingly, I'm CEO of CareLink,
and I'm representing the Area Agency on Aging Association. And we are in favor of this bill. Funding for our senior centers, for your senior centers, has been flat without special one-time funding since 2016. In fact, this year, we're a little less than 2016 overall funding with federal and state match, federal and state monies combined. And as you know, everybody's experienced tremendous inflationary factors over that past decade,
between labor costs, inflation, and your senior centers 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 a 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.
But 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 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 motion do pass at the proper time. Motion do pass as amended? As amended. Okay, we have a motion
do pass as amended. Any discussion on the motion? Seeing none, we have a motion. Do pass as amended. All in favor, say aye. Aye. Opposed, say nay. Congratulations, your
bill has passed. Thank you. With that, members, we're going to skip down. I know we're all over the board today. We're just trying to get bills done. So we're going to vote.
We're going to hear SB 529 that I'm going to present, and this is one that we can vote on. And Representative Ray, if you'll take over
Representative David Ray
Unverified
24:08
for me. All right, committee, this is Senate Bill 529.
Representative Cavanaugh, you can introduce yourself
for the record and you'll be recognized to proceed. Thank you. kavanaugh state representative district 30 these are some just some changes to the independent tax appeals commission act it puts in a definition of a small claims and how that is actually handled it goes in and it changes who can actually sit on the commission it gives a new definition of what's a qualification and it talks about someone having a professional has five years of experience
in the area it takes out some unneeded language it talks about ways to withdraw the motion it's really just some cleanup language but mostly dealing with small claims and small claims is less than ten thousand dollars ten yeah ten thousand dollars and with that i would take any questions all right you've heard an explanation
Representative David Ray
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25:08
of the bill are there questions from the committee
Representative Kavanaugh, my question, I guess, would be, are these changes that were brought to us by DFA?
Are they, is there consensus
around these changes? Or, I guess, where did they originate, the recommendations to change
Speaker 36
25:32
these? Polingarian DFA? Yep. So, the Tax Appeals Commission Act, there was discussion when
Speaker 30
25:39
the bill was originally being drafted and discussed for how this would work. A small claims process was considered when
Speaker 36
25:48
the original legislation was enacted two sessions ago.
But as the Commission has started to implement the Tax Appeals Commission, there was a desire to consider the ability for a small claims process to be added. So this is language that, it's my understanding, the Department of Inspector General, who oversees the Tax Appeals Commission, prepared
Speaker 23
26:10
this language. Okay. Yeah, that makes sense. Okay.
And Paul can speak to that there's no fiscal impact because it's just changing a wording.
Speaker 36
26:23
That is correct. So these changes to the Tax
Speaker 30
26:27
Appeals Commission Act are procedural in nature. They don't govern the statutes that levy taxes that provide for deductions. So there is no fiscal impact to the state as a result of these changes. members I take any questions all
Representative David Ray
Unverified
26:45
right are there any other questions from the committee okay seeing none let's see if we have anybody signed up to speak for against this bill we have nobody signed up am I
missing anybody okay with that representative Kavanaugh would
you like to close for your bill thank you I'd like to close from a bill
Representative David Ray
Unverified
27:09
and make a motion do pass all right members there's a motion do pass is there
any Any discussion on the motion? Seeing none, all those in favor, say aye. Aye. All those opposed, say no. All right. Senate
Bill 529 has passed. And next on the list,
do we have Representative Maddox in the room? No. No. Do we have Representative Lundstrom in the room? Okay, Representative Eaton, you've got some
bills. Are you ready? I'll run down there real quick and see where I'm
Speaker 122
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at, and I'll be right back. All right, yeah,
Representative David Ray
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27:47
you go ahead. You can go ahead and
make your way to the end of the table. We'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. Okay, Senate Bill 494 committee is what
we're going to take up. Representative Eaton, if you could introduce yourself for the record and your guests as well,
Speaker 127
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and then you'll be recognized to proceed. Representative James Eaton, District 26. Cameron Coker, Staff Attorney for Arkansas Tobacco Control.
Representative James Eaton
Unverified
28:35
Get us started on SB 494. What we're looking to do here, tobacco consolidation, 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.
Speaker 130
29:05
Yes, so this bill, what it would do is it would consolidate the three manufacturer's permits that we currently issue through tobacco control that each cost $500 annually into one manufacturer's permit with a $500 annual fee. This permit would cover all the products we regulate. And this bill also eliminates the exclusive permit for e-liquids and vapor products that
allows a permit holder to act as a manufacturer, a wholesaler, and a retailer all at the same time. And I'd be happy to take any questions.
Representative David Ray
Unverified
29:46
All right, committee, you've heard an explanation of the bill. Are there questions from members
Representative Roger D. Lynch
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29:56
of the committee? of Lynch are recognized. I don't see a fiscal impact in this synopsis that we're
Representative James Eaton
Unverified
30:04
hearing. Fiscal impact would be, did you, it should be on that, your Senate Bill 494? Yeah. Got
Representative Roger D. Lynch
Unverified
30:14
any idea about how much money we're talking about? A thousand dollars annually. For the whole state? Yes, sir.
Representative David Ray
Unverified
30:26
Okay. All right, Representative Wing, you have
Speaker 139
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in more or less revenue by consolidating?
Speaker 130
30:36
Representative Wing, right now all the permit holders we have would be consolidated into one permit, so it wouldn't change, there wouldn't be any change in revenue that the state is currently receiving from that because
all three of these permits would be consolidated into one. So all
Speaker 139
30:53
the permit holders would be getting this new consolidated permit. It would still be a $500 annual fee. So are they currently having to pay 500 times
Speaker 130
31:04
three? No, sir. So it's split up between tobacco products and alternative nicotine products. Another one covers vapor and e-liquids only. And another one is for manufacturers who just manufacture cigarettes. So they have one of those three right now. And
Speaker 139
31:17
just consolidating them all into one would be no change for them.
It would still cost them $500 annually. Okay.
Representative Carlton Wing
Unverified
31:24
So they're not having to, if they're selling more than one of those products, they're not having to buy two licenses for the two different products, and now they would just have to buy one? That's
Representative David Ray
Unverified
31:43
correct. Okay. Okay. All right. So, in your opinion, this is going to, is this designed to simplify the permitting process? Is that, tell me what the benefit of this legislation is.
Speaker 130
31:53
Representative Rice, so right now we have three manufacturer's permits and we're streamlining them all, excuse me, into one permit. It would streamline the process for our administration. We would have only one permit to issue for manufacturers instead of three. And again, there would be no change to the business practices of our manufacturers. They could just get one permit that's available for all of our products. All right.
Representative David Ray
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32:23
Are there any other questions from the committee? Okay. Seeing nobody sign up to speak for or against the bill, is there anybody from the audience that we're missing? Okay. With
that, Representative Eaton, you're recognized to close for your
Representative James Eaton
Unverified
32:40
bill. Thank you, Mr. Chair. Basically, this is a consolidation bill. Like I said, we're going from three to one permit. I don't think there's going to be fiscal impact, except the $1,000 we're
going to lose for one company. So with that, I move for a due pass.
Representative David Ray
Unverified
32:58
All right, Representative Eaton has made a motion to do pass. Is there any discussion on the motion? Seeing none. All those in favor, say aye. Aye. All those opposed, say no. All right, the bill is passed. Representative Eaton, would you like to present your other bill, Senate Bill 495? Yes. Okay. If you'd like to introduce yourself
Speaker 142
33:20
again for the record and your guests, you may proceed. Thank you, Mr. Chair. James
Representative James Eaton
Unverified
33:26
Eaton, District 26 and a half. Cameron Coker, again, Staff Attorney for Arkansas Tobacco Control.
So as we look at Senate Bill 495, 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
Speaker 130
33:48
nicotine or e-liquid products. And that's correct. Representative Eaton is correct. What this bill does, it does two things. The first thing it does is it adds a requirement that permit holders, when they are conducting their transactions on their invoices, that the buyer and seller's permit number needs
to appear on each invoice as well as their address that they are permitted by Arkansas Tobacco Control with, that information needs to appear on all those invoices. What the second part of this bill does is it allows our auditors when we are conducting investigations into seizures of seized tobacco products for which taxes have not been paid. We do that for criminal and administrative purposes. It just allows our otters, when they're making those calculations, to use 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. invoices are not seized, however, they have to use the price 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.
Representative David Ray
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35:22
Members, are there any questions? Representative DeRay, you're recognized. Okay, I apologize if you already covered this. I got a little bit
distracted while you were presenting. Can you just tell me what problem exists
Speaker 130
35:32
that we're trying to solve with this bill? 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. 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. When that happens, that opens up our retailers to administrative 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 potential penalties. So, requiring this information to be put on these invoices would assure these retailers that they are purchasing from permitted wholesalers. And it would actually ensure the wholesalers as well that they are selling to permitted retailers because they're also
Speaker 129
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required to sell to permitted retailers. -
Representative David Ray
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36:44
Okay. Representative Eaton, have you heard any
Speaker 142
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feedback from retailers about this bill?
Are they in support of it or? - No, no, no, no, no, no, no, no, no, no, no, no position. - Okay. - And I've actually, and I've heard nothing actually. - Okay, all
Speaker 128
36:57
right, thank you. - And Representative Ray, I can answer, speak to that 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? Seeing 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? Seeing none.
Representative Eaton, would you like to close for
Representative James Eaton
Unverified
37:23
your bill? I'm closed for the bill. Madam Chair, thank you. And I
would move due pass. Okay. Members, we have a motion due pass. Any discussion on the motion? All in favor, say aye. Aye. Opposed, say nay. Congratulations, you've 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 going to hear is going to be HB 1910.
And Representative, remember we have your amendment. So if you'll present your amendment first. Thank you. I'd forgotten about
Representative Robin Lundstrum
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38:02
that. That is to add Senator Petty as a co-sponsor.
Members are passing out that amendment. Would you like to move for a motion of amendment? Move, do pass.
We have a motion of amendment. All in favor say aye. Aye. Opposed, say nay. Representative Lundstrom, you are recognized to present your bill as amended. Thank you, ma'am.
Representative Robin Lundstrum
Unverified
38:34
Thank you for your indulgence in letting me come in. I may regret that next door is going to be a food fight, so I may want to stay here. House Bill 1910 basically allows the deduction for certified qualified business expenses under the Income Tax Act. Basically, it would match the federal government.
Think of a qualified tax as 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, S corporations, this would affect our self-employed small businesses. I understand there's an impact statement of about $103 million 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 ask 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 Lundstrom. Members, any questions? Seeing none. Members, I don't have anybody signed up for or against the
bill. Is anyone in the audience to speak for or against? Seeing
Speaker 154
40:09
none. Representative Lundstrom, would you like to close for your bill?
Representative Robin Lundstrum
Unverified
40:13
I'm closed and I would recommend that we put this in for further study. I realize 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. Appreciate it. The next bill we have for you is going to be HB 1904. All right. And this is another one that we want will be for
Representative Robin Lundstrum
Unverified
40:37
discussion only. Okay. HB 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. 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 in fines and fees from citizens. I think that's excessive. I know they've been FOIA'd 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 some of these paycheck folks that we've been getting onto them for years. And here we're the ones doing it. Payday lenders.
Speaker 154
41:38
I'm sorry. That's who I was referring to.
No problem. Members, do we have any questions for Representative Lundstrom? I have
one. Do you know what other states do around us, how they look at their penalties or anything? No, ma'am. No, ma'am, that's a good question, but I do not. Paul, would you happen
to know that? Okay. So I'm just curious how we look around other
Representative Robin Lundstrum
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42:01
states. Yes. In my close, I have a gift for all of you. Arkansas puts out a legislative tax handbook. I know you're dying to read this. It's tempting information, but actually it's very important.
This is the amount of taxes and fees that we put out, 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 put them together and make it easier on the businesses to pay their taxes but not just keep nickel and diming them to death. So with that, I have a gift. I would say thank you, but
I'm not really sure about that. Yes, ma'am.
Representative Robin Lundstrum
Unverified
42:44
If you can't sleep, this ought to do it, or this will raise your blood pressure, which it did mine. So I want to thank BLR for getting
Speaker 154
42:51
these for me, and I will be glad to pass them out to you. Thank you. With that, I'm closed. Okay. Appreciate you bringing
it forward. Members, thank you for presenting your bill. Thank you, ma'am. Thank you for your time. Members, at this time, we're going to 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.
Unknown speaker
43:15
And with that, we stand in recess. Thank you.
Thank you.
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Thank you.
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Thank you.
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Thank you.
Members, we're going to come back from recess if everybody will take their seats.
All right, members we're back from recess, appreciate y'all all waiting.
With that, Representative Eaves has two bills to present. The first one is going to be HB 1935. He has an amendment to
present first, and we need to adopt it. Representative Eves,
if you'll introduce yourself for the record, you'll be recognized.
Representative Les D. Eaves
Unverified
1:00:40
Representative Lessee's District 58 members you have an amendment here that is striking some language that inadvertently
got 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 that the applicant would have to receive a or the department would have to do a positive cost benefit analysis from the Commission for the project that forms the basis of the
business's financial incentive agreement. That's what the amendment does, and I make a motion to adopt the amendment. Members, we
have a motion to adopt amendment. Any discussion on the amendment? Seeing
none, all in favor say aye. Opposed say nay. Congratulations, your amendment has passed. If you will present your bill
Representative Les D. Eaves
Unverified
1:01:30
as amended. Thank you. Thank you. Committee members, this is an
update on a previous program Arkansas has had for a while, HP 1935, called the Modernization and Automation Incentive. 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've already had a long warning. It provides for a modernization and automation tax credit for businesses that have been in continuous operation
for two 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 the project costs include construction of a new plant or facility or the expansion or modernization of an existing plant or facility and if the credit is allowed it's going to be five percent excuse me up to five percent of the eligible product project costs and the maximum credit that can be used in any year is two million dollars unused credits carry forward for five years
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 and i've got mr clint o'neill that can give you some added information if you so desire clint if you
can introduce yourself for the record clint o'neill executive director
Speaker 166
1:03:15
aedc do you have any comments you'd like
Jay Robertson
Unverified
1:03:20
to make thank you for the opportunity chairwoman kavanaugh
You know, the state of Arkansas had a program called InvestArc, which was taken off the books in 2017. It was an investment-based incentive. It had a minimum threshold of $5 million. It was a statutory program, and it became the most expensive incentive program that we had. In fact, it still is as it is ramping down and will be fully off the books in two years. It was the right move that the General Assembly made to take InvestArc off the books. way it was written this this program is much different it's a discretionary program when we
have the opportunity to work with a facility that's has multiple manufacturing facilities throughout the country and they're looking at making a large investment in one of those 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 bringing in you know robotic technology that takes away jobs
but for increased investment would add a tool to our toolbox to help existing arkansas companies thank
you members do we have any questions representative mcclure you
Representative Rick McClure
Unverified
1:04:48
recognize for Mr. O'Neil, just quickly, modernization usually equals automation during this day and age. Usually we see a number of FTEs. Can you explain to the
committee why FTEs are not appearing in this change?
Jay Robertson
Unverified
1:05:06
So, we use the language of base payroll, you're right. We're looking for scenarios in which there's much increased capacity, not just increased technology that would lead to a reduction in FTEs. Sometimes it would result in higher paying jobs, but fewer jobs, but we're looking at a base payroll that would be required throughout the
Any other questions, members? Representative Ray, you're recognized. Okay.
Representative David Ray
Unverified
1:05:47
Representative Eves, 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 yet. Sure. So we made the decision to phase out InvestARC. I know you spoke to this. Can you just repeat what you said?
How is this different than the
Jay Robertson
Unverified
1:06:09
credit that we repealed? 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 our discretion. Sometimes in order to win a project, you might need 2% or somewhere up to 5%. And then 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, hitting
the $25 million in eligible investment 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 win
Representative David Ray
Unverified
1:07:03
a project. So 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 just leave discretion to the agency, from my vantage point, it basically allows you guys to pick and choose which favored companies 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. Sure. Let me answer one thing first, and then I'll let Clint go into
Representative Les D. Eaves
Unverified
1:07:43
it. One of the things that we've added that you'll see in the amendment is this has to have a positive cost-benefit analysis.
I'm not sure if that's something that was in Investart, but having significantly higher minimum investment. And I'll give you an example. and the company that I work for, we were looking to invest in some robotic technologies to help with improving welding outcomes. And I called Economic Development Commission. There were no incentives for us to be able to use to 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 plant in from another state and move it into Arkansas and do the exact same thing. There are plenty of incentives to do that. So to me, this bill is going to help businesses that are already 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 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. If not, states that are surrounding us will also do that. But, Clint, if you want to answer
Jay Robertson
Unverified
1:09:07
the second part of his question. Yes, sir, and thank you for the question, Representative Ray. 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 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, perhaps we're giving away money that we didn't otherwise have to. And as Representative Eves said, we're taking a look project by project and trying to win those projects with the least amount necessary, also having a positive cost-bend analysis. When you
Representative David Ray
Unverified
1:09:53
say win a project, what I think of when you say win 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 locate to Arkansas. But my understanding is that this is for businesses that are already located in Arkansas. So help explain to me what you mean in this context when you say win
Jay Robertson
Unverified
1:10:19
a project. Yes, sir. I mean, to win 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 competitive analysis among states that they decide to expand in Arkansas. Okay. And I want to say
Representative Les D. Eaves
Unverified
1:10:51
something also for the record. When I was talking about the company that I work for, this bill in 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 McElhinney, you're recognized for a question.
Representative Roger D. Lynch
Unverified
1:11:09
Okay. Representative Lynch, you're recognized. So, there's only three ways to generate wealth, mining, manufacturing, and farming. So, I'm all for anything that'll increase manufacturing in Arkansas. Any other questions, members? Seeing 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? Seeing none, Representative Beavis, would you like to close for your bill?
Representative Les D. Eaves
Unverified
1:11:41
Yes, I did want to say one thing. I believe
DF&A will have a revised fiscal impact statement based on this 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 on that. Paul,
would you go to the end of the table and please introduce yourself and address the physical impact, please?
Speaker 36
1:12:11
Thank you, Madam Chair, Paul Gehring, DFA. What Representative Ease just explained about the amendment under the bill, there is 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 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
Representative David Ray
Unverified
1:12:52
recognized. I had another question for AEDC. I see on here it says that a business would be required to return any credits claimed if the business breaches the agreement. How often do we have businesses that fail 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 don't have a
Jay Robertson
Unverified
1:13:21
percentage that I can give you, but it's certainly on occasion we have companies, whether it's a quick action agreement or a create rebate agreement, a company that we've entered into a financial agreement with that often times it's because of the number of jobs created that they committed that they would fall short of or in some cases they would reach the goal but halfway through
the term for most programs is 10 years that they would not satisfy that on job requirements. So it certainly happens on occasion.
Representative David Ray
Unverified
1:14:00
And so in those instances, how often are you successfully able to recoup the benefits that they've
Jay Robertson
Unverified
1:14:09
received? Most of the time. The financial incentive agreements are written with good clawback language. Unless a company goes out of business and it's just no longer worth pursuing, we've had a good track record on that.
Okay. All right. Thank you. Members, any other questions? Seeing none, thank you, Paul. Representative Eaves, would you
Representative Les D. Eaves
Unverified
1:14:38
like to close for your bill? Yes, ma'am. Thank you, colleagues. I am closed for the bill and would like to make
a motion. Do pass as amended. Members, we have a motion. Do pass as amended.
Any discussion on the motion? Seeing none, all in favor say aye. Opposed say nay. Congratulations, your bill has passed.
Thank you. And while you're down there, you're going to present SB408. Yes, ma'am. And members, this is one we can take a vote on also.
Representative Les D. Eaves
Unverified
1:15:10
Thank you. Hi, members. This is Senate Bill 408. It comes to us from Blake Johnson, Senator Blake Johnson. Most of 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 PPP loans. The federal government has made these particular payments tax-exempt from federal tax.
We're going to follow the language here, and farmers that receive these payments, the state will not collect income tax on these. And these payments are made to taxpayers under their 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 when they receive these 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. I have no one signed to speak for or against the bill. Would anyone like to speak for or against the bill? Seeing none, Representative, would you like
Representative Les D. Eaves
Unverified
1:16:22
to close for your bill? Yes, ma'am. I'm closed,
and I make a motion due pass. Members, we have a motion due pass. Any discussion on the motion? Seeing 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, you'll be recognized.
Speaker 183
1:17:11
- Thank you, Madam Chair. John Maddox, State Representative District 86. - Hugh McDonald, Secretary of Commerce. - You're
Representative John Maddox
Unverified
1:17:23
recognized, President Bill. - Thank you, Madam Chair. I'll try to be fairly brief. This is, 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. 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. This will require a positive cost-benefit analysis, just like the other bill. It provides for a tiered system with specific minimum thresholds for new job creation and average hourly wage. I'll run through those real quick. Tier one, 300 positions at at least 150% of the county or state average. Tier two, 250 positions at 125. Tier three is 200 positions at 115,
and tier four is 150 positions at 110% of the county or state average wage. So obviously it's tiered to provide more incentive to go to the counties and areas that are struggling a little more, that do not have the income that Northwest Arkansas and the other places have. But obviously anyone can locate to any of these places. 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 four years of the incentive agreement. So I would just kind of touch on it. It's my opinion, and visiting with Commerce Department about this, this would be a very rarely used tool, just because not that many corporate headquarters are going to likely relocate. However, if we were able 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 allow Mr. McDonald
Hugh Mcdonald
Unverified
1:19:29
to-- Thank you, Representative Maddox. He's done an excellent job of summarizing the bill. I put this in a category of nothing ventured, nothing gained. You know, I can tell you that we have not had corporate headquarters relocate to Arkansas for at least 25 years.
And so this is something new, something we're going to try. And, you know, a company that is looking to move, which they're always looking to move, We would take this 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 first five years of any agreement.
And then, of course, it would stair-step up in years six through ten. So it would put us on an even playing field with Texas and Tennessee, for example, potentially for five years. So it's an idea, something new, and 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
Hugh Mcdonald
Unverified
1:20:49
offer an incentive like this? No, I target them because they have zero tax.
Okay. So there's no one around us with an incentive like
Hugh Mcdonald
Unverified
1:20:59
this? I'm not sure, and to be honest, I did not, we did not do the research on who else has got something like this, but we felt it was something that we could proactively put in our toolbox and mark it.
Okay. Is there anything in the incentive that after the five years, if they leave,
Hugh Mcdonald
Unverified
1:21:21
there's some kind of clawback? - Yes, there is a, every year there is a,
I believe they have to be here for five years. Let me see if I can find it. let's see here the
only reason I ask is that if we give them this incentive and
they're here for five years and then on six year they left I
Hugh Mcdonald
Unverified
1:22:10
mean what did we really accomplish so that's what I'm asking yeah no it's a good question failure to annually certify or recertify payroll figures shall result in a 10% reduction of the earned tax credit if not claimed within 12 months there is 100% forfeiture of the earned tax credit if not claimed within 24 months of the end of the tax year and there is a termination of the financial incentive
agreement of initial certification of payroll figures have not been filed with the department within four years and my able assistant has said that if a qualified business fails to reach the requisite, this is on page 8, line 31, 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 five years, or is it a clawback that in year six, when their tax liability comes, 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 going to give this as an incentive, and I understand the incentive, but if they're only going to stay here for five years, we really
haven't created long-term wealth for Arkansans
that way. And so that's why I'm asking that question. Yeah, understood. Yeah. Jennifer
Hugh Mcdonald
Unverified
1:23:49
Emerson here. I'm sorry. You're not identifying. Hi, good morning. Jennifer Emerson,
Speaker 195
1:23:57
Deputy Director, AEDC. 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 year six, year seven, year eight, year nine, it would require that same
clawback, a free payment of all of those, the amount that they
received. So actually the timeframe is 10 years. On the 11th year, we'd be in the same cliff if they decided
Speaker 197
1:24:25
to leave, correct? Correct. Year six through nine, it's a reduced amount. So it goes down by 20% every year of the
amount of the tax credit. Okay. All right. Thank you. Representative
Representative David Ray
Unverified
1:24:40
Ray, you're recognized. Thank you, Madam Chair. So, Representative
Maddox, I've heard the phrase was mentioned in the presentation,
nothing ventured, nothing gained. But that's probably from the perspective of the state. So my question is, 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'll start with that, and then
Representative John Maddox
Unverified
1:25:16
I'll start with that, and I'll allow anyone who
wants to jump in to assist. But I mean, certainly Representative Ray, you and I have had lengthy discussions about these, 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. 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 going to 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 going to cost us anything, and we may never use it, frankly, but if we have a chance to bring someone big here to any area of our state, I think it'd be a great win, but I'll let
Speaker 200
1:26:23
anyone else follow up on that. I think, well said, you
Hugh Mcdonald
Unverified
1:26:32
know, there's incentives. Every state offers some kind of incentive, and there's always existing businesses that do not get the incentive. So there's really nothing new in terms of the landscape of offering new incentives.
It's just a different type of incentive that we haven't focused on in
Representative David Ray
Unverified
1:26:52
the past. So to that point,
how many other states have this incentive, this new mover type incentive?
Hugh Mcdonald
Unverified
1:27:02
We did not do the research of what other states do have an incentive similar to
this. So I can't answer that question, Representative
Representative David Ray
Unverified
1:27:11
Ray. Okay, so, and Representative Maddox, I appreciate you responding to my question, but I don't think you ever spoke to the actual question that I asked, which is, do you feel that 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?
Representative John Maddox
Unverified
1:27:35
Well, that's a great question. I apologize if I didn't answer it directly. I guess what I meant to say is 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 and 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.
Again, it hasn't happened over 25 years, so it's not something that I think we're going to be doing every day. I wish we would. 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
Representative David Ray
Unverified
1:28:26
new business here. That's how I'd answer that. Okay. I just have one more question. And it's the last bill that we heard, that was an incentive that's basically discretionary.
um is i mean there's parameters here for various types of tiers and counties i'm not sure i understand what
counties are which tier i suspect my county is not in uh is probably in tier i don't know i'm probably tier one i would suspect your county
Representative John Maddox
Unverified
1:28:53
is tier one i do not know that but i would suspect with the demographics of your county would be tier one okay i don't i
Representative David Ray
Unverified
1:29:02
don't know that for So is
this incentive going to be at the discretion of AEDC, or if you meet these qualifications, are you going to get it?
Speaker 122
1:29:12
It is discretionary, that is correct.
Representative David Ray
Unverified
1:29:23
Okay, so, I'm sorry, that just prompts another question. So how are you going to utilize your discretion? Are you just going to decide which companies are worthy of getting this tax break and which ones are unworthy? Like, how do you determine which one's politically favored enough to get this preferable treatment
and which one is unfavored? I'm sorry. I would
Representative John Maddox
Unverified
1:29:48
start with 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 will look at all of the other qualifications and issues and determine if it is best for the state of art. So that's my opinion, but I need to let the experts speak about that. Yeah,
Hugh Mcdonald
Unverified
1:30:13
cost-benefit analysis, they have to meet the thresholds,
the employee thresholds, and the payroll thresholds to meet the qualifications. That's how
it will be evaluated. But not necessarily everyone that meets
Representative David Ray
Unverified
1:30:24
those thresholds will 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
1:30:47
Assuming it passes the cost-benefit analysis, they would get it,
Representative Rick McClure
Unverified
1:30:59
yes. Okay. Thank you. Representative McClure, you're recognized. This is one of those glass half empty, glass half full. I
try to look at glass half full. I don't look at it as so much of what we're losing is what we're gaining. And this would all be new revenue if I'm reading this correct. So while the corporation itself would qualify for that, to do that in a tier wing county,
you're going to have to have 300 FTEs at 150% of the average wage. That is a very, very steep climb for almost any business. The other side is with the payroll, they're going to be generating a tremendous amount of taxes, 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 Carlton Wing
Unverified
1:31:50
Representative DeWing, you're recognized. Thank you, Madam Chair. Just a quick question. - I've been involved in some incentives,
bills in the past, and the kinds of bills that generate the most interest are the kinds where the state of Arkansas receives the benefit before the money goes out. And I recognize this is structured a little bit differently. How confident are you in that with this?
Speaker 207
1:32:18
- Appreciate the question. No, you're correct.
There would be some benefit that would go out initially, With
Speaker 195
1:32:25
the 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. That is kind of the fail safe for the possibility of the company either leaving or, you know, going out of business or whatever. But if, of course, if they went out of business, it would 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 going to have to assume that we're going to be able to claw that money back should they not do what they signed on the dotted line to do. And just
Representative Carlton Wing
Unverified
1:33:04
in case in the advent of a bankruptcy or something like that, does the state of Arkansas become a secured creditor to get in line with those to get at least recoup as much as possible? We would not be
Speaker 207
1:33:17
secured. It would be, at that point, I would probably have to lean on Department of Finance and Administration
Speaker 195
1:33:24
because they would be handling the clawback on this particular incentive, but as how they handle clawbacks in a bankruptcy situation for any of our incentives that they administer. Okay, thank you. Representative McElindon, you're recognized. Thank you, Chairman.
Representative Mindy McAlindon
Unverified
1:33:41
Thank you. So I do have a kind of echoed Representative Ray's 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 are advantaging them pretty significantly over their competitors. So I know you've answered that question. I just wanted 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 or if 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 years later with 150 employees and jump back into the system?
Speaker 195
1:34:28
No, the way I understand it, it would completely nullify the agreement if they were not able to do so. They can ask for an extension, and we can grant an extension to give them two years to meet the threshold. 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 incentives, is they can ask for a one-time extension. Okay. Okay. 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 or against the bill? Seeing none, Representative Maddox, would you like to
Representative John Maddox
Unverified
1:35:15
close for your bill? Yes, thank you, Madam Chair, and thank you, committee, for all the questions. That was a really good discussion. I would just state, again, I don't want to belabor the point. We've had no one move their corporate headquarters to our great state in at least 25 years.
If this happened, it would be very limited and very rarely used, but it would be a significant win for the state of Arkansas to get a corporate headquarters relocated here. And again, it does require a positive cost-benefit analysis to qualify for that. So with that,
I would appreciate a good vote. Do you make a motion? And while I'm at it, I'll make a motion to pass. Okay.
We have a motion to pass. do pass, do mass. It's a long morning already. Do pass. Any discussion on the motion? Representative
Representative David Ray
Unverified
1:36:06
Ray, you're recognized. Thank you, Madam Chair. I'll be brief. 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 can just watch CNBC or read the paper and they're moving all the time to various states. I think these incentives, these credits,
all of these things are just sort of a Band-Aid solution. And we're just treating the symptoms. We're not doing enough to treat the problem. And the problem is our overall business climate And I think that's probably something that most of the people in this room agree with. I just think, rather than taking this approach, 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 consider sort of Band-Aid solutions. So I'll be a no vote. Any other discussion on
the motion? Seeing none. Representative Mackenland, you're recognized. Am I? Thank you. Thank you, Chairman. Yeah,
Representative Mindy McAlindon
Unverified
1:37:26
so I actually agree with Representative Ray. I 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 the strong schools, which we are currently building, and we are really working on improving a lot of what our state needs to do to attract those companies here.
Representative John Maddox
Unverified
1:37:42
And so I am a no vote as well. - May I join in on 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 Representative McClendon said. We need to be more business friendly than Representative Ray said. I'm sorry. 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, 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, any other session? Representative
Representative Rick McClure
Unverified
1:38:51
McCleary, you're recognized. representative 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 having worked some of these deals these are not unusual this is a little bad package 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 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'll be a yes any other
members seeing none okay members all in favor say aye opposed say nay no congratulations your bill
has passed thank you thank you committee with that members we only have one bill left to hear today which is SB 530 is there anybody here with SB 530 that would like to present, SB 530.
All right, members, with that, 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 going to 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 Frances Cavenaugh Chair
Unverified
Representative Lane Jean
Unverified
Speaker 10
Representative David Ray
Unverified
Speaker 30
Speaker 38
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