Revenue & Taxation- House
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Transcript
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Bills discussed (50)
| Bill | Title | Sponsor | Status |
|---|---|---|---|
|
HB1787
· 4 mentions in transcript, agenda, chapter
Matched: “…se he has another bill to present. We're gonna be uh taking HB 1787. Um, and just as a reminder, we will not be able to take a…”
|
TO PROVIDE AN INCOME TAX EXEMPTION FOR CERTAIN RETIREMENT BENEFITS RECEIVED BY LAW ENFORCEMENT OFFICERS … | Warren | Died in House Committee at Sine Die adjournment. |
|
HB1657
Act 709
· 3 mentions in agenda, transcript, chapter
Matched: “…rd McGrew SPECIAL ORDER OF BUSINESS Number Sponsor Subtitle HB1657 Beck TO AMEND THE ARKANSAS WOOD ENERGY PRODUCTS AND FOREST…”
|
TO AMEND THE ARKANSAS WOOD ENERGY PRODUCTS AND FOREST MAINTENANCE INCOME TAX CREDIT. | Beck | Notification that HB1657 is now Act 709 |
|
HB1687
· 3 mentions in agenda, transcript, chapter
Matched: “AGENDA (Revised 3-31-2025 @ 1:14 PM) Moved HB1687 to Regular Agenda House Committee on Revenue and Taxation T…”
|
TO PROVIDE THAT A WATER AUTHORITY IS EXEMPT FROM ALL EXCISE TAXES. | K. Moore | Died in House Committee at Sine Die adjournment. |
|
HB1732
Act 878
· 3 mentions in chapter, transcript, agenda
Matched: “HB1732 Vaught TO INCREASE THE AMOUNT OF THE INCOME TAX DEDUCTION A…”
|
TO INCREASE THE AMOUNT OF THE INCOME TAX DEDUCTION ALLOWED FOR A TEACHER'S CLASSROOM INVESTMENT. | Vaught | Notification that HB1732 is now Act 878 |
|
HB1026
· 2 mentions in chapter, agenda
Matched: “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. |
|
HB1216
· 2 mentions in agenda, chapter
Matched: “…IGIBLE STUDENT AT A PUBLIC INSTITUTION OF HIGHER EDUCATION. 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. |
|
HB1469
· 2 mentions in agenda, chapter
Matched: “…TE FRANCHISE TAX, AND THE ELECTIVE PASS-THROUGH ENTITY TAX. 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
· 2 mentions in chapter, agenda
Matched: “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. |
|
HB1636
· 2 mentions in chapter, agenda
Matched: “HB1636 Ray TO AMEND THE ARKANSAS SOFT DRINK TAX ACT, AS AFFIRMED B…”
|
TO AMEND THE ARKANSAS SOFT DRINK TAX ACT, AS AFFIRMED BY REFERRED ACT 1 OF … | Ray | Recommended for study in the Interim by the … |
|
HB1671
Act 1007
· 2 mentions in agenda, chapter
Matched: “…X BASED ON SALES TAX COLLECTIONS FROM SALES OF SOFT DRINKS. 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 |
|
HB1738
· 2 mentions in chapter, agenda
Matched: “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 chapter, agenda
Matched: “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. |
|
HB1807
Act 879
· 2 mentions in chapter, agenda
Matched: “HB1807 Eaves TO AMEND THE SALES TAX EXEMPTION FOR AIRCRAFT HELD FO…”
|
TO AMEND THE SALES TAX EXEMPTION FOR AIRCRAFT HELD FOR RESALE AND USED FOR RENTAL … | Eaves | Notification that HB1807 is now Act 879 |
|
HB1809
Act 880
· 2 mentions in agenda, chapter
Matched: “…OR AIRCRAFT HELD FOR RESALE AND USED FOR RENTAL OR CHARTER. HB1809 Warren TO ALLOW FOR PROPERTY OWNED BY A TRUST OR A LIMITED…”
|
TO ALLOW FOR PROPERTY OWNED BY A TRUST OR A LIMITED LIABILITY COMPANY TO QUALIFY … | Warren | Notification that HB1809 is now Act 880 |
|
HB1822
· 2 mentions in chapter, agenda
Matched: “HB1822 Underwood THE OVERTIME BUT NOT OVERTAXED ACT.”
|
THE OVERTIME BUT NOT OVERTAXED ACT. | Underwood | Died in House Committee at Sine Die adjournment. |
|
HB1851
Act 714
· 2 mentions in chapter, agenda
Matched: “HB1851 Jean TO AMEND THE SALES TAX EXEMPTION FOR FOOD, FOOD INGRED…”
|
TO AMEND THE SALES TAX EXEMPTION FOR FOOD, FOOD INGREDIENTS, AND PREPARED FOOD SOLD IN … | Jean | Notification that HB1851 is now Act 714 |
|
HB1857
· 2 mentions in chapter, agenda
Matched: “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. |
|
SB422
Act 615
· 2 mentions in chapter, agenda
Matched: “SB422 C. Tucker TO ALLOW NONPROFIT ORGANIZATIONS TO CONTRIBUTE TO…”
|
TO ALLOW NONPROFIT ORGANIZATIONS TO CONTRIBUTE TO A NEW OR EXISTING ARKANSAS BRIGHTER FUTURE FUND … | C. Tucker | Notification that SB422 is now Act 615 |
|
HB1015
· 1 mention in agenda
Matched: “…PROFIT ORGANIZATION. DEFERRED BILLS 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: “…IT Page 2 of 4 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. |
|
HB1063
Act 875
· 1 mention in agenda
Matched: “…E TAX CREDIT FOR CERTAIN EARLY CHILDHOOD EDUCATION WORKERS. HB1063 J. Mayberry TO AMEND THE ACHIEVING A BETTER LIFE EXPERIENCE…”
|
TO AMEND THE ACHIEVING A BETTER LIFE EXPERIENCE PROGRAM ACT; AND TO AMEND THE DEFINITIONS … | J. Mayberry | Notification that HB1063 is now Act 875 |
|
HB1065
· 1 mention in agenda
Matched: “…O CHANGE DISABILITY ONSET AGE FROM TWENTY-SIX TO FORTY-SIX. HB1065 Ray TO CREATE THE INFLATION REDUCTION ACT OF 2025. HB1076 H…”
|
TO CREATE THE INFLATION REDUCTION ACT OF 2025. | Ray | Died in House Committee at Sine Die adjournment. |
|
HB1076
· 1 mention in agenda
Matched: “…. HB1065 Ray TO CREATE THE INFLATION REDUCTION ACT OF 2025. HB1076 Hudson TO CREATE THE CARING FOR CAREGIVERS ACT; AND TO PROV…”
|
TO CREATE THE CARING FOR CAREGIVERS ACT; AND TO PROVIDE AN INCOME TAX CREDIT FOR … | Hudson | Died in House Committee at Sine Die adjournment. |
|
HB1116
· 1 mention in agenda
Matched: “…FOR EXPENSES INCURRED IN CARING FOR CERTAIN FAMILY MEMBERS. HB1116 Ray TO CREATE THE REMOTE AND MOBILE WORK MODERNIZATION AND…”
|
TO CREATE THE REMOTE AND MOBILE WORK MODERNIZATION AND COMPETITIVENESS ACT; AND TO PROVIDE INCOME … | Ray | Died in House Committee at Sine Die adjournment. |
|
HB1190
· 1 mention in agenda
Matched: “…ED TO CERTAIN REMOTE AND MOBILE EMPLOYEES AND NONRESIDENTS. HB1190 Vaught TO CREATE AN INCOME TAX EXEMPTION FOR TEACHERS. HB12…”
|
TO CREATE AN INCOME TAX EXEMPTION FOR TEACHERS. | Vaught | Died in House Committee at Sine Die adjournment. |
|
HB1203
· 1 mention in agenda
Matched: “…1190 Vaught TO CREATE AN INCOME TAX EXEMPTION FOR TEACHERS. HB1203 Underwood TO PROTECT ARKANSAS TAXPAYERS FROM A TAX TO COLLE…”
|
TO PROTECT ARKANSAS TAXPAYERS FROM A TAX TO COLLECT TAXES. | Underwood | Died in House Committee at Sine Die adjournment. |
|
HB1366
· 1 mention in agenda
Matched: “…TO PROTECT ARKANSAS TAXPAYERS FROM A TAX TO COLLECT TAXES. HB1366 Ennett TO CREATE AN INCOME TAX CREDIT FOR QUALIFIED STORM S…”
|
TO CREATE AN INCOME TAX CREDIT FOR QUALIFIED STORM SHELTERS. | Ennett | Died in House Committee at Sine Die adjournment. |
|
HB1388
· 1 mention in agenda
Matched: “…O CREATE AN INCOME TAX CREDIT FOR QUALIFIED STORM SHELTERS. HB1388 Vaught TO EXEMPT CERTAIN STORAGE SERVICES FROM SALES TAX; A…”
|
TO EXEMPT CERTAIN STORAGE SERVICES FROM SALES TAX; AND TO EXEMPT THE SERVICE OF FURNISHING … | Vaught | Died in House Committee at Sine Die adjournment. |
|
HB1404
· 1 mention in agenda
Matched: “…URT FROM SALES TAX, AS AFFIRMED BY REFERRED ACT 19 OF 1958. HB1404 C. Cooper TO CREATE A TAX CREDIT FOR CONTRIBUTIONS TO A PRE…”
|
TO CREATE A TAX CREDIT FOR CONTRIBUTIONS TO A PREGNANCY RESOURCE CENTER. | C. Cooper | Died in House Committee at Sine Die adjournment. |
|
HB1435
· 1 mention in agenda
Matched: “…CREDIT FOR CONTRIBUTIONS TO A PREGNANCY HELP ORGANIZATION. HB1435 Achor TO AMEND THE LAW CONCERNING INCOME TAX CREDITS FOR CH…”
|
TO AMEND THE LAW CONCERNING INCOME TAX CREDITS FOR CHILD CARE; TO AMEND THE INCOME … | Achor | Died in House Committee at Sine Die adjournment. |
|
HB1464
· 1 mention in agenda
Matched: “…LICENSED CHILDCARE PROVIDERS; AND TO DECLARE AN EMERGENCY. 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. |
|
HB1485
· 1 mention in agenda
Matched: “…RTS FOR AND REPAIR OF AGRICULTURAL EQUIPMENT AND MACHINERY. HB1485 K. Brown TO CREATE A SALES AND USE TAX EXEMPTION FOR SALES…”
|
TO CREATE A SALES AND USE TAX EXEMPTION FOR SALES TO CERTAIN ORGANIZATIONS THAT SUPPORT … | K. Brown | Died in Senate Committee at Sine Die adjournment. |
|
HB1500
· 1 mention in agenda
Matched: “…SUPPORTING, AND CARING FOR AN INDIVIDUAL WITH A DISABILITY. 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: “…LE BUSINESS ASSETS TO THE AMOUNT ALLOWED UNDER FEDERAL LAW. 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: “…TO CERTAIN ORGANIZATIONS THAT SUPPORT VETERANS' FACILITIES. 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: “…ARD PERIOD FOR THE NET OPERATING LOSS INCOME TAX DEDUCTION. HB1665 Wardlaw TO AMEND THE LAW CONCERNING THE INSURANCE PREMIUM T…”
|
TO REPEAL THE CREDIT ALLOWED AGAINST THE INSURANCE PREMIUM TAX FOR ACCIDENT AND HEALTH COMPREHENSIVE … | Wardlaw | Died in House Committee at Sine Die adjournment. |
|
HB1674
· 1 mention in agenda
Matched: “…ARY AND WAGES OF THE EMPLOYEES OF THE INSURER. Page 3 of 4 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 |
|
HB1698
· 1 mention in agenda
Matched: “…58; AND TO EXEMPT GROCERIES FROM STATE SALES AND USE TAXES. 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
· 1 mention in agenda
Matched: “…ARE SHARING MINISTRY OR OTHER MEDICAL COST-SHARING PROGRAM. 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. |
|
HB1702
· 1 mention in agenda
Matched: “…ICES TO THE SALES TAX HOLIDAY; AND TO DECLARE AN EMERGENCY. HB1702 Wooldridge TO AMEND THE SALES AND USE TAX EXEMPTIONS FOR CE…”
|
TO AMEND THE SALES AND USE TAX EXEMPTIONS FOR CERTAIN MACHINERY AND EQUIPMENT USED IN … | Wooldridge | Died in House Committee at Sine Die adjournment. |
|
HB1708
· 1 mention in agenda
Matched: “…FOR MACHINERY AND EQUIPMENT USED IN CLOSED- LOOP RECYCLING. HB1708 Underwood THE KEEP THE BONUS, AXE THE TAX: THE NO-TAX BONUS…”
|
THE KEEP THE BONUS, AXE THE TAX: THE NO-TAX BONUS ACT. | Underwood | 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. |
|
HB1828
· 1 mention in chapter
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. |
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First bill we have up is Representative Beck. That's House Bill 1657, um, while he's making his way to the table, let me just go over what we're going to hear this morning for those in the audience. I was watching at home and for the members. We're gonna hear uh House Bill 1657 by Representative Beck. That one we um my understanding is we can take a vote on. Then the next several bills we will not take a vote on. We'll just be hearing them. House Bill
1671. House Bill 1687. House Bill 1732, I believe, um Representative Jane is going to present that one for Representative Vau and then House Bill. 1828, 1789 and then 1851 and we will be able to vote on that one is my understanding. So All right, Representative Beck, my understanding is you have an amendment.
For your bill, yes, Mr. Chair. We're going to go ahead and let the staff, the staff pass that out.
Representative Rick Beck
Unverified
1:12
Yeah, please. The, uh, with the chair's permission, I'd like to invite Mr. Harville from the uh Green Bay to join
me at the table. Yeah, of course. She OK Representative Warren just
brought to my attention I misstated the bill number on his
bill 1787 is the one we're going to be hearing from Representative Warren.
Thank you for that. All right, um, Representative Be, looks like everyone has your Amendment Looks like it's just adding co-sponsors. If you want to go ahead, you
Representative Rick Beck
Unverified
2:02
can present your amendment, thank you and the amendment just adds a co-sponsors to the bill and I'd appreciate them. Favorable vote. All right, any questions from
committee seeing none. No one here to speak for or
Speaker 13
2:16
against the amendment you want to close for
your amendment. I'm closed. Is there a motion right, motion to adopt all those in favor say aye. All those opposed, right, the amendments adopted. Representative Beck you recognize to present your bill as amended. Thank you, Mr. Chair.
Representative Rick Beck
Unverified
2:34
Thank the committee. I, I just want to start out before I get into the jest of what we're doing here today is
to talk about the Green Bay Packaging Company and, and what a great partner they've been to the area, uh, the, the
mayors of Marlton's not here that I didn't see him here today, but he would testify that how, how not only their employees but also the the company itself has helped out with many of the projects at the at the city of Marlton. The other thing that they've done is a few years back, some of you may remember that they built a training facility that was state of the art in in Marlton, and it wasn't just for, for their training their employees, but they also train employees from, from Tyson's and other uh manufacturing facilities around the state that helped the, the
state, so they're, they're just a really they've been a great partner to the state as well as to Conway County. And with that, I'm gonna go into the The bill that we're amending right now this this bill is an amendment of a bill that was uh first passed in um 2021. The bill was a path for $50 million project, which received a 30% tax credit, uh, and that bill really was to deal with um palatizing uh of
For products into pellets, I think. All right, now, So the differences between this one is we've increased it now to $1 billion and that's correct. I said $1 billion. This is a project that's gonna be, that's really gonna marvel some of the stuff that we did out with the, the steel mills out in eastern Arkansas. This is one of the biggest projects that uh I think it's, I've been told it's the 3rd or maybe the 4th largest project ever by a private company in Arkansas, so it's $1
billion and it's also reduces the the tax incentive credit. From the 30% down to just 20%. I'll help you guys out with the math on that, what that really equals is about $5 million per year for 10 years. So it's a large, very large project. Now, a couple of things that you'll see marked up in the bill itself is that we uh we changed the language to say that it's, it's wood byproduct for the production of energy. This
project will actually create a boiler that's going to be generating. Steam, uh, that can actually produce energy and we know how important energy is, uh so this, this will be great along that avenue. It's also going to um there's another modification here that talked about wood, it adds wood byproducts including bar and that just to elaborate that this that this baller will actually be using these wood byproducts and actually bark to actually turn that into electricity and I believe also,
uh, there'll be some. direct steam off of the boiler that might be used in the process itself. So that's really the jest, uh, uh, there's also some dates changes to bring it up to date, uh, to today's date, but other than that, that's pretty much all the amendment does. Now, I'd like to just briefly get into the actual project itself, as I mentioned earlier, this is a $1 billion investment into a 60 year old male, and I want to emphasize the importance of that. I worked for the Kimley Clark Corporation
for 32 years and I did. projects for them and I can tell you that if a if a production facility, a major corporation that has a production facility and they're not investing in that facility as far as improvements are concerned, then that facility is currently on a on a slide path to to maybe be eventually shut down and the reason for that is simple. Large corporations have multiple facilities that produce the same products.
When things get tight and you, the man's not there for the product. They'll simply go to the most efficient process that they have to produce a product. That's just the nature of the business. If you're have not invested in new instrumentation and new controls to make the existing process more efficient than the others, then that facility will be at a minimum curtailed if not shut down totally. So this shows a big commitment, uh, by the Green Bay Company to. 60 year old facility and with
that in mind, the, the next point I want to bring up is this will retain 700 jobs in the area and it's not just Conway County. There's 14 counties around Arkansas that will be affected by this in the timber industry, the hauling and the logging and all all those ancillary um facilities will be affected by this. It also adds an additional 400, excuse me, 40 jobs, uh, averaging with the average salary of $100,000 per year. So that's a big end.
The The 20 year estimate on salary uh distribution is 1 point. $1 billion. So over a 20 year period, you're we're gonna get that much in salary distribution, also almost immediately what happens is It's expected that approximately 1000 contractors will be on site during construction for, uh, then the construction phase for about 2 years, and you can think of all the things that that
brings into the uh economy, you know, the, the restaurants and the rentals and all that stuff that adds to our, our economy, um, to show the commitment, as I mentioned earlier about uh from Marlton and I I don't know if I mentioned uh the, the county judges, but already Green Bay Packaging is partnered with local governments that the counties, several county governments, Marlton, help relocate a highway with our dot to relocate a highway to
accommodate the expansion of this uh facility. So it shows a commitment and shows that partnership between these not just common County but other counties surrounding this knowledge and importance of this particular facility. Uh, currently, Green Bay Packaging owns and manages about 125,000 acres of timber in Arkansas, and they also work on management systems with 900 private landowners in the states and that equals about another
200,000. So close to half a million, uh, excuse me, half a million acres of timber is managed that. This bill is also designed to ensure that there will not be a negative impact on state revenue and that, and we've got that but this is revenue neutral as they spend the money and expand the facility, then that will receive the tax credits that I talked about earlier and now with the chair's permission, I like Green Bay to, to speak, um.
That's they can probably give us some more details on the project itself. Make
Brad Harville
Unverified
9:37
sure you introduce yourself. Thank you. Um, Thank you, Mr. Chair. Um, Representatives for this opportunity. Um, my name is Brad Harville. I'm the vice president and general manager of Arkansas Craft Division of Green Bay Packaging in Morton. I've been with Green Bay Packaging for 20 years. Um, before that, I spent 20 years at Georgia Pacific and cross it. uh, so I've been doing paper for for 40 years. I
started when I was 4, so, um, but I appreciate you guys. Hearing our opportunity and, and um it's a pleasure to be here and, and speak about that this this afternoon or this morning. Um So Green Bay is this is our 60 year anniversary at Arkansas Kraft, um. The, the lifeblood of a paper mill that Of a virgin paper mill that brings in chips and trees is a recovery board. Our recovery boards will, will
be replaced during this project. A lot of companies um at this stage of the game, they look at The capital investment that's coming and they weigh whether to, to stay in business or, or whether to mind the asset. Um, and, and walk away. Um That's not what our company likes to do. That's not what. Our owners I would prefer to do, we.
We've invested here, we've built a generation here we'd like to invest for the next generation. This first phase is what I'm gonna call it, um. is Hopefully to set the groundwork for potentially another phase um in a few years, so we do that, um, with the future in mind, um, the first phase, um. The return is not stellar, um. We probably wouldn't do this if we weren't considering.
Um, another phase down the road. So, um, that's the one of the reasons why we're here to, um, to seek you guys' support, um, in, in this investment that we're Doing in central Arkansas affects the um the river valley, um, and, and the whole central part of the state. And if you guys have any questions or anything I can add, please. I'll be glad to. Thank you, members, um, questions?
Representative Jean, you're recognized for question. Thank you,
Representative Lane Jean
Unverified
12:12
Madam Chair. uh, Mr. Harville. Or as y'all's baseline
when y'all get started is, is that the 100 jobs, uh, what y'all project right off the bat. OK, I don't, I don't think it's 100. Well,
I mean you've got, you've got an our, our sheet has 100 between 100 and 400. Uh, so we're in job retention, um, there, there's 400.
Brad Harville
Unverified
12:39
At Arkansas Craft, there's another 300 in other divisions within the state, so I'm
Representative Lane Jean
Unverified
12:43
talking about the new jobs created on this expansion, new jobs created is around 30
or 40, 30 or 40, OK, well, our sheep. Has a little bit more than that, so 30 or 40, what is the uh estimated uh payroll for those 30 or 40. Positions around $100,000 per position.
OK, well, thank you. I, I appreciate that. Representative Wooten who recognized.
Representative Jim Wooten
Unverified
13:10
Thank you, Madam Chairman. Um, would one of you kind of elaborate. It is, will it produce 90% of the energy that they use will be produced by their esteemed uh boiler or generator. Yes, sir. We'll,
Brad Harville
Unverified
13:26
we'll have two boils. One's a biomass boiler which takes um byproducts from the, the chipping and pulping um. Processes and it takes residual bark we take from several sawmills in the in the region.
Uh, we generate electricity. We use, um, we step it down uh to use it in the process to, to dry the, the, the paper with we also use it, um. To drive the, the turbine and to generate electricity for ourselves. Most, a lot of paper mills do that right now
Representative Jim Wooten
Unverified
14:01
we do not. OK, follow up for my, um, the road compact on the highway with our dot. That is, is that not the first, uh, venture of that
type between private enterprise and state government. I don't know if it's the
Brad Harville
Unverified
14:17
first venture like that, but I've, I've heard that it's, it's the, the biggest collaboration that we've had, uh, with, with RAT for, for moving highways in the state. OK, so You're going
Representative Jim Wooten
Unverified
14:29
to produce 90% of your energy and you're going to take care of the roads in uh the, the highway in that area. It's part of it so the the
Brad Harville
Unverified
14:40
way that the way that works is the,
the county judges, uh, signed up to adopt some state highway in their county that becomes county County roads now. All right. Well, my loggers
Representative Jim Wooten
Unverified
14:55
have had several made several comments to me about the fact of the highway situation they face both from BB and farther All in White County across all the way to the mill. And, uh, of course, this will be very helpful to them, will it
Brad Harville
Unverified
15:15
not, to the loggers. Yes sir, um. It's, it's vital to the, the logging industry, not just in central Arkansas but in in the state. Uh, we've got. Already underutilized base of forest resources
Speaker 34
15:27
in the state. Thank you. Thank you, Madam Chairman. Any other questions, members? Representative Ray, you're recognized. Thank you, Madam Chair.
So, um, I guess I would start by saying,
your company has been uh involved has been
doing business in Arkansas, it sounds like for 60 years, is that what Representative Beck said so help me understand, you know, what, what initially brought your company to Arkansas and what what made Arkansas an appealing place for your company to Land in the first place, so the original owner, Mr. Jim Cress, I believe,
Brad Harville
Unverified
16:07
um, This was pretty early in the process of the craft process and in the process where they made cardboard boxes.
Um, it's what most people call them we call them. Um Um But When they looked at the natural resources, the, the availability of, of water, um, the infrastructure of highways getting to and from in the, in the, in the land, um. And I believe um he collaborated with uh, with Mr. Rockefeller back in the day, uh, for locations as well so that um.
That was a key driver um for where, um, And um And the The desire to To build a virgin craft mill so the corrugated industry. Uh, if, if you didn't have virgin meals that make their own paper out of chips, make their own pulp, then The OCC um. O corrugated containers can only be recycled a few, a few times, so it takes that influx of virgin. to
hold the industry up altogether. Without that, it would, it would come come to pieces, um. So we also invested in forest land and and Green Bay Packaging owned around 250,000 acres in Arkansas, um, the other 250,000 acres we work with around 900, um, as Mr. Beck said, around 900 private landowners to help them manage their Um Their resources uh free of charge to help them get the most
out of their, um. Out of
their resources. So your company chose Arkansas because of its natural resources, it's forests, it's water resources,
it's infrastructure, access to the interstate system, all those things. You, you didn't choose Arkansas because the state granted you some sort of
favorable tax treatment. I don't, I don't know how that happened back
Brad Harville
Unverified
18:14
then, but um But as far as I know, it was, it was because this was a good place to to build that. OK, um,
just a few questions and I'll, I'll, uh, hush up representative Beck, so. The way I read this,
uh, I'll phrase it as a question. Is is this a tax credit essentially just for one individual company or do you anticipate there being several companies that take advantage of this. As I
Representative Rick Beck
Unverified
18:46
read the bill, it, it's, it is just for this particular project for this
company. OK, so I mean my follow-up would be, you know, it's a 20% tax
credit, I think as I understand it, it's capped at $5 million for 10 years. I mean, I'm sure there's a lot of companies, uh, so why, why are we just doing this for companies that Use wood byproducts. Why wouldn't we use the, I mean, I'm sure there's a whole host of companies that manufacture various products or provide various services that would also appreciate a 20% tax credit up to $5 million for 10 years. I mean, can you walk me through that logic and what would you say to a company that said, why am I not getting the same deal?
Representative Rick Beck
Unverified
19:27
Well, I, I I think you're, you're looking at
it like it's a forestry type. Uh, product in, and I mean, all of this is what this project is about. It, it could be about another project. It's, it's about a company that's bringing $1 billion worth of investment to Arkansas. They're investing $1 billion now. It could be. Auto or it could be anything else that could possibly we would look at that and say that, you know, we'd have to review and say, is that what they want? I think the things that
important to capitalize on here. There's, there's a, there's a few things that we should look at. OK, you have a company that is shown to be a good partner, not just to the counties around it. obviously, uh, that, that exists. In that the counties actually agreed to take on state maintain roads in order for the R dot to build the road around Green Bay area, so this expansion could have that shows a lot of commitment by those surrounding
counties to this project. The other thing that That is, you know, Green Bay is here for 60 years. And just like I mentioned earlier, investing this amount of money in this facility shows a commitment from them to keep this facility going. They're not gonna invest in me, excuse me, a billion dollars in, in a facility that they're not gonna get that money back. This is a total of $50 million for for $1 billion
investment and I, I do honestly think that this is enough. interesting couple of points I'd like to make on this is this area is an area where we're looking at putting a port for the river on the river right there. We've already had some other factories look at this area, not on green banks, but other that has nothing to do with this. One of the issues is it's hard to we do not have the transmission right now to deliver power to this area. This project will help with that
situation just by the fact that it will reduce the law that that Green Bay is pulling off and make that available for others. Thank you for that.
I, I appreciate that they're a great community partner and that they've created jobs in the state and are looking to invest further. I just, it always gives me a little bit of concern when we're Violating the principle of neutrality in terms of how we treat various businesses, but thank you. Can I follow up on that just a bit. I worked for
Representative Rick Beck
Unverified
21:55
the Camera Clark Corporation and we did, we did a
tax credit in Malel. You're very district that that expanded that facility. All right, and the, and the city of Malmell gave us this this tax credit to help us in a corporation, you're looking at trying to get your facility that you're at, those improvements so you can continue running since that project, there's been another, I, I, I think I, I did the preliminary actually uh numbers on before I left. I think it was an 80 billion dollar project in addition to the the project that that we did there before. So
these things, the investment by these corporations and their commitments to these areas bring a financial benefit that far surpasses any type of, and certainly in this case, a tax credit that we're getting. So it's just a good common sense investment. Thank you, Representative Lynch, recognize for question. This
Representative Roger D. Lynch
Unverified
22:48
might be On your products that you sell,
do you, do you sell at retail in the state of Arkansas, any of your products? Um, well, we have.
Brad Harville
Unverified
23:03
So We sell at retail. Um, we've got a, um, Wonder state box in Conway is, is one of ours. I'm not sure where they sell to, but the nature of corrugated where we can, we can send paper, uh, we send paper to to Dallas and Fort Worth. We've got box plants there. We're about 90% integrated. We sell box plant, we sell paper to our box plants, our box plants make boxes in the region that they're
in. Won State box is owned by Green Bay Packaging now, which is in Conway. I'm sure their regional um footprint puts product in in the state of Arkansas, but I don't know. I couldn't answer where it would be no idea how many,
Representative Roger D. Lynch
Unverified
23:49
how much money that would be. We'll cut that would be. I have no idea what that would be, you know, we charge a sales
Brad Harville
Unverified
23:57
tax in Arkansas. Every one of our employees pays sales tax.
Representative Rick McClure
Unverified
24:07
Representative McCurry recognized the question. Thank you. Uh, Representative Beck, I'm, I'm reading here and I just want clarification, uh, under the basic change line to says Act 594 of 2021 created an income tax credit for World Energy product and forest uh maintenance projects and then it goes into the expansion. Uh, if I'm correct, what we're doing is looking at that uh Act 594. And this particular project
qualifies to be under Act 594. Is
Representative Rick Beck
Unverified
24:43
that correct? I I, I'm not familiar with the act. Is that the act that is associated with the, with, with this. I'm not familiar with that
Representative Rick McClure
Unverified
24:54
act number. OK, well, that's just what it says here. My, my point is being this and what we have here, the packaging company is not listed, uh, her name. It's an industry bill rather than a specific
company bill, is that correct? OK. Any other questions, members? Seeing none, thank you. Um, I don't see
anyone signed up to speak for or against the bill. Besides yourself. So is there anyone in the audience that would like to speak against the bill. For the bill See none, Representative
Beck, would you like to close for your bill? Thank you, Madam Chair,
Representative Rick Beck
Unverified
25:39
and yes, I'm, I'm close for my bill and I would appreciate uh a Du pass and a favorable
vote. Thank you, Representative Beck. What is the will of the committee? Got a motion to pass as amended, all in favor say aye. Opposed say nay. The eyes have it. Thank you. Your bill has passed. And members without objection we're going to. Yes, sir. I want to thank the committee.
Representative Rick Beck
Unverified
26:04
Thank you, ma'am. Uh without objection we're gonna
go out of sequence, so representative Warren, if you'll go next because he has another bill to present. We're gonna be uh taking HB 1787. Um, and just as a reminder, we will not be able to take a vote on this bill, but we will be able to discuss it. And Representative, you'll introduce yourself, you'll
Representative Les Warren
Unverified
26:33
be recognized. Thank you, Madam Chairman, Committee. I had uh been asked to uh consider this. I'm going to
present it to you. House Bill 1787. Provides the same $6000 state income tax exemption on retirement income that we offered to retired military to retired firefighters and police officers. We did this for retired military people as a way to attract new people to the state. Uh, this bill is a way of saying thank you to those who put their lives on the line daily to protect us. I recognize the fiscal impact
and I even know from talking to Paul Geering, uh, there's, uh, Some work to be done, but Uh I know the revenues are tight this session, uh, but I wanted to get this out there. Uh, these are people who we want to retain in our state. Who will take those dollars saved and put them back in to all of our economies, uh, I'd be glad to answer any questions. Representative Jean, you're recognized for question. Thank
Representative Lane Jean
Unverified
27:45
you, Madam Chair Reverend Warren, uh, does this have a year requirement because the military tax that we did was for career people, I think of over 20 years if you served 8, 10, something less than that, you did not get this. Does this have a year amount of what we serve on or is this any any uh uh police or uh I guess you've got firefighters in there. Firefighters and police, yeah I
mean you, you can retire after 10 years, but have they have they got to have the uh a certain amount of year uh uh into the state before
Speaker 71
28:26
they get this. I, I would be very open to having that same
Representative Lane Jean
Unverified
28:30
requirement. But, but this bill doesn't have it in it. OK, that's all my, that's all
my questions. Thank you. Members, any other questions? Representative Wootton,
Representative Jim Wooten
Unverified
28:43
you're recognized. Along the lines of Representative Janes. Does this
include the volunteer firemen or is this just the regular or is it includes both regular full-time employees and part-time volunteers. It includes the volunteers, OK. All right. Thank you. Members, any other questions? Seeing none, I don't have anyone signed up
to speak for or against, um, With that Representative Warren, are you want to close for your bill?
I am closed and thank you very much committee. Thank you.
With that, members, we're going to go back up and we're going to take HB 1671 representative Johnson. If you'll go down and introduce yourself for the record and you'll be recognized to present and as a reminder, uh, we will not be able to take a vote
Representative Lee Johnson
Unverified
29:41
on this bill. Thank you. Thank you, Madam Chair, committee, Representative Lee Johnson, District 47, um, members, as you know, we have
some entities in the state that have named in statute as sales tax exempt for sales tax too, um, and all of us have nonprofits in our community that it time to time have approached us, I think, trying to seek that sales tax exemption. There are a lot of good nonprofits in Arkansas that do a lot of good things and um what I'm trying to do with this bill is create a standardized process for certain nonprofits to apply for sales tax to exemption through DFNA. And what I've tried to do is
make the guardrails very narrow as to not open it up too wide to minimize the potential fiscal impact. So we're limiting it to a nonprofits with the total operating annual operating budget of $200,000 or less. Uh, additionally, they had to provide some sort of community-based services if they qualified under those caveats. Then they could apply to DFNA, uh, for sales tax to exemption DFNA could then request more
materials to verify that they do indeed meet those qualifications. We've also put up a guardrail of trying to limit single expenditures to $2000. The idea behind that is that, you know, we don't want necessarily a small nonprofit setting up and then trying to go out and buy $70,000 vehicle, right? and be sales tax exempt for that. So we're really trying to make this specific. To small nonprofits in our state
who are really struggling on small operating budgets to limit the sales tax, uh, to, uh, for them as a cost burden for the day to day operational goods they might need to purchase, uh, which you, you could, you would say, hey, you know, if you're a small nonprofit, $200,000 or less, how much would this really impact you, um, you know, for these particular types of groups that are providing a lot of good services in our communities, even a small financial impact makes a big difference. So if
they. be cells sales tax too exempt for just supplies that they're staffing their thing with, you know, toilet paper, paper towels, uh, those types of things, it can make a big difference for these entities, and I think this gives us an opportunity to
give everybody a chance across the state who meets
these qualifications to make an application as opposed to petitioning us individually and us trying to come in here individually and and seek those
sales tax to exemptions, and I'd be happy to answer any questions from the committee on the bill. Uh, Representative Johnson, I have a question. When you look at the legal analysis of it, it's basically states that the limit on the transaction that you have at $2000 would have to be taken out because it contradicts because we're
Representative Lee Johnson
Unverified
32:44
a full member of the streamlined sales tax and
use agreement. So for us to continue to be part of that, you would have to strike out
that limitation because it's not allowed to, to happen because we're part of this um agreement. So once we we did that, where basically we'd be open it wide open, would we not? Well, it's a good question. I got that, I got that language directly
Speaker 85
33:18
from DFNA and, and it was their request that had me put that in there, so I was working under the assumption it was good language and fair language. OK, thank you I'd be happy to have and they come to the table if they have questions
on that. I, my understanding was that was legal and a good way to set up that guardrail. Paul, if you'd go down to the end of the table. Too much. Thank you, Madam Chair, members of the committee, Paul Gehing DFA Representative Johnson and I, we worked on the language of this bill early on in the session. Once the bill was filed, we did have our, our experts in the streamlined sales tax agreement, they did identify that issue. We'd certainly be happy to work with
Representative Johnson and figure out a way to um that would be workable with under the streamline
agreement to make sure that we're not running afoul of our obligations to comply, so we're certainly dedicated to be able to figure out a way to make sure that the transaction. Limit, um, could be in a way so that these large purchases that we were concerned about motor vehicles, etc. would not be available to be purchased under
Speaker 85
34:25
the exemption. OK, and Do you happen to know how much
money, because I'm not a big fan of having named entities in the statute. I think in our task force tax reform task force, that was one thing that we, we hit upon is that we didn't like the name entities that we were trying to find a way to get rid of those namedentities in
the statute, um. Do we know how much sales tax exemption that we're actually giving to
nonprofits. I have to go back and check. We
certainly as a part of the Act 819 report were required, DFA is required every before every session to provide that updated report. I'll have to go back and look and see what entry that we
have for these named or otherwise generalized nonprofit organizations on what the sales tax um that we are um the the fiscal impact that is attributed to you, but I'd be happy to follow up with you after um I get a chance to look at the report again. Yeah, if you don't mind, just send that out. I'm just kind of curious on how much we're actually um given out an exemptions for nonprofits, um, with that members, are there any other questions? Representative Ray, you recognized. Thank you, Madam Chair. Uh, Mr. Geering, so I guess I'm just a little bit unfamiliar, you know, we, we grant um a sales tax exemption to certain nonprofits in the statute already. How do they take advantage of that nonprofit exemption. We just
had the bill on the farmers and the ID card. Do they have a card? Is there a form they fill out? Do they just tell the merchant, hey, I'm sales tax exempt, what do they do? So there are a number of sales tax exemptions that
Speaker 85
35:33
Exemptions that exist in the code where it is a specific organization that is named so in terms of providing that proof, um. I believe that most of those organizations are just, they, they've had that exemption in the law for for so long and. Quite, it's been a while since we've actually added to to that particular list by the General Assembly. So I believe that those those organizations just have their vendors that recognize that they are that specific organization and they
do not have a requirement to pay any sales tax on their purchases of goods and services. Now there are also those general exemptions that might apply to humane societies is a good example. Those organizations also. Likely go when they make their purchases to their vendors. are able to make those purchases without any type of specific document issued by DFA, but from time to time if an organization is just unclear whether they
qualify, they write into DFA and obtain a revenue legal opinion from DFA that certifies that they meet the qualifications of the exemption as well as specify what items particularly can be purchased under that exemption, um because sometimes they are limited, uh, for example, some, some food banks are able to buy food items for free distribution to the poor. poor and needy, but they're not necessarily able to buy everything exempt from sales tax. OK. Um, does
the department have any concerns about
Potential um potential abuse of these exemptions for nonprofits of them, you know, using it for things that are not necessarily for the nonprofit but might be for. Individual individuals that work there are
affiliated with those groups that, that was certainly a part of the um of the conversations that
Speaker 85
37:23
that we had with Representative Johnson when we're working on the bill to make sure that the, the scope of the organization would need to be, you know, very clear that just being a nonprofit, maybe we want to make sure that they're
providing some type of uh actual services that are benefiting the community, something that DFA can can evaluate when a when a nonprofit makes the application for the exemption. are also concerned was that uh An individual that might want to just form a nonprofit purely for the, for the purpose of of buying an item, that's why we talked about some type of limitation on the amount, so if someone could form a 501c3 purely for the purpose of making personal purchases. We're trying to figure out a way to put those
guardrails into the proposed language of the bill to make sure that that those types of transactions would be limited in their ability, and there's also um A process for these organizations to write in to DFA, apply for um the the exemption and then DFA to respond back and provide the um exemption certificate that they would be able to use to make those specific purchases, so we, we wanted to put in as many guardrails as possible to make it possible, but we're always
also looking for uh in our on our audit team to make sure that the law is being followed by a taxpayer that's taking advantage of. Exemption. OK, um, my last
question is just on the fiscal impact it says undetermined loss
to sales and use tax collections. I mean, I, I appreciate you guys trying to not put a number on something that you honestly can't determine. I certainly don't want you to make up a number, but do you, did you have an idea of a range of impact, like would
it be 1 to $5 million or 5 to $10 million or, you know, $25 to 50 million. Do you have, do you have any, I'm I'm just trying to get a ballpark sense of this. might do and
Speaker 85
39:22
I, and I wish that we would be able to give a
ballpark amount. We we don't have that because this would be a new exemption. We don't know how many nonprofit organizations would potentially apply for the exemption or or qualify. So that's it's, it's not, it's not a nominal number. I would, I could say, but certainly it's at this point it is undetermined and and providing a ballpark numbers just was was beyond our ability and even though we spent
Representative Lee Johnson
Unverified
40:19
a lot of time and resources trying to figure out a number so. that we could provide that to the General Assembly when they considered
this bill. OK, and then I thought that was my last question. I lied. I had one for
Representative Johnson. Is it, um, Representative Johnson, is it, is it your, um, hope or intention to try and um replace the individual exemptions for various groups that we have with this more broad-based exemption for nonprofits, or would you, would you just be wanting to add this to the existing ones I looked at, I looked at. I looked at trying to potentially hit a reset button right and have a sunset period on the current sales tax to exemptions, um, that was gonna be a challenge for a variety of reasons, not the least of which were political, uh, and, and then additionally, uh, you know, we looked at, OK, well, maybe we just grandfathered them in and make this the new path going forward, um, but, uh, you know, closing that door to other potential folks that may want exemptions. I didn't want to necessarily do that either. So all I was really trying to do is create just sort of a standardized approach, right? And say, OK, look, everyone in the state, if you're a nonprofit and you want sales tax to exemptions. Here are the qualifiers we recognize go apply
to DFNA, continue to have DFNA, be the gatekeeper of that process and then let them decide is this an appropriate entity based on the statute, and then it would give us opportunity to come back in. I think, you know, from a fiscal impact standpoint, there is information and I, I know I've seen it. I just, I don't want to quote numbers that I don't know for sure that I remember because when I was working on this bill. then, you know, I had, I started working on before the session that report came before us in
Speaker 93
41:26
some committee, I don't know which committee you report it to believe it was heard in Legislative council or
Or a joint budget, um and looking at those and
Representative Lee Johnson
Unverified
41:35
we'll get I'll get that information. I
should have had it beforehand, but I do think there's a way to look at the, the main entities and, and look at the small ones. My memory is the fiscal impact to those sales tax exemptions was, was really nominal, um, and you know, again, if you're a large entity, um. You know, how much advantage is it for you to be sales tax exempt. I, I think for the small entities that are really struggling in our communities but really stepping into the gap
and trying to provide some really essential community-based services. Those are the ones that I think probably need it the most and probably will have the least fiscal impact, but again, it's hard to predict and I recognize that's asking a lot of this committee, um, I'll come back with language that clarifies uh that doesn't create conflict. I can work with DFNA to try to come up with that around single item purchases and we'll get you the information on the report of the other nonprofits, um, and if I need to come back again and visit again, I'd be happy to do so with the committee. I do
think it's an important thing for us to consider because I do think we're going to continue to have these ass coming forward and having just sort of a standardized approach everyone can recognize, uh, with, with minimal room for significant fiscal impact, I think is important. All right,
Representative Les D. Eaves
Unverified
42:55
thank you. Representative Es were recognized. I think. Representative Johnson may have answered my question. I mean, we sit here and talk about exemptions for huge companies, um, and
When I'm reading this, I have to believe that
if you're operating budget is less than 200,000 a year, a nonprofit that's pretty
Representative Lee Johnson
Unverified
43:15
small group, right? Correct, and uh what is our sales tax percentage? The state sales tax rate is 6.5%, so you know, it's 6.5% if $200,000 if half your revenue is for, you know, even if half your revenue was for purchases, uh, at, at 6.5%, that's a pretty minimal fiscal impact, and I can't imagine most of these entities
are spending half their revenue on purchases.
Representative Les D. Eaves
Unverified
43:39
I'd say if you're if you're operating budgets less than
$200,000 you're probably having a tough time making. Ends meet on the operation or the nonprofit that you serve, and I'll tell you uh uh my opinion too would be what Representative Kavanaugh said it gets a little tiresome every time we come here and we have to name a new nonprofit or a new business that's asking for an exemption. I, I do like the idea of having some sort of
umbrella umbrella process that captures all of these, especially when they're this small, so, um, anyway, wouldn't you agree? Yeah, I would, I would agree and I,
Representative Lee Johnson
Unverified
44:14
and that that does align with the goal of what I'm trying to do here is just try to give everyone as representatives as community members, hey,
if you have a nonprofit in the community, they're coming to us saying, hey, could we get this sales just this is a bill you could point to and say, hey, do you meet these qualifications? If you do, great, go apply to DFNA. If you don't, I'm sorry you don't meet the qualifications for sales tax to exemption, and this is always just a starting point, right? If
we need to come back in the future and tweak these numbers if we find out, hey, 200,000, there's 10,000 of these. incorporate nonprofit corporations out there and there's creating tens of millions of dollars in fiscal impact. We can dial that down to 100,000. If we find out there's 4, we could dial it up to 250 $300,000. It gives us a way to sort of start this process of, of looking at a standardized approach. I think Representative Wootton, you're recognized. Thank you, Madam
Representative Jim Wooten
Unverified
45:05
Chair. I'm, I'm a little confused, which is not unusual, but
Um, Why did you, did you collaborate with uh DFA before you did the bill? Yes sir, I worked with them before I brought the bill forward, why would we permit the bill to contain something that had a limitation on it. So if, if we're a member of the, the uh streamlined sales and use tax agreement. Why, why would we
Speaker 101
45:41
put that in this bill and bring it to the committee
Speaker 85
45:46
knowing that it had a limitation on it. It's a fair question, Representative Wooten. Certainly there are, we have our individuals within DFA that are the, the specialist with the streamlined sales tax agreement when Representative Johnson and I were were working on this language for this bill. I just was not aware of. that particular issue, but I, I do believe there are ways that
we can figure out um to address this um
Representative Jim Wooten
Unverified
46:16
issue in other ways, possibly by identifying specific items um that may not be eligible for the exemption as opposed to a transaction limit that answers my
Speaker 101
46:26
next question. Would it not be better to mention a new car. they couldn't
Speaker 85
46:32
purchase a new car as a result of this exemption and use the exemption and that would be certainly if we took away the the transaction limit
Representative Jim Wooten
Unverified
46:44
and replaced it in the bill, of course, this is Representative Johnson's bill, but certainly that would be something that could be um carved out certain items
Speaker 75
46:52
that would not be eligible for the exemption. So then the, the people at DFA knew
Representative Jim Wooten
Unverified
46:58
about this, but you didn't know about it, and we wrote the bill. I,
Speaker 90
47:02
I still don't understand that part of it. Oh, this is not a DFA bill. I want to be in fairness he, he came to you and talked to you about it. Yeah that's, that's correct and
Representative Jim Wooten
Unverified
47:15
certainly I, I wasn't aware of this particular issue when we've had our initial discussions on the bill follow up if if we used You use a limitation system. For people, if I understood what you said in your testimony that we use the limitation on different groups and they just brought a letter to you and explain it, and you all evaluate it and then then we grant. An exception. Is that Is that what you said?
Speaker 85
47:45
just to make sure that I understand, uh, so certainly I think what you're explaining is that if we issue an exemption certificate to an eligible organization and put the requirements on the eligible organization that they know that they cannot purchase an item that's in excess of $2000. Is that, is, is that what you're asking to see if that would violate streamline you do that now? I'm not aware of one currently on a transaction limit for
another exemption. I am aware of other exemption limitations that do not extend to purchases of motor vehicles or other types of items that aren't eligible to be purchased with the
Speaker 90
48:24
exemption. Thank you. Thank you, Madam Chairman. Thank you. Members, any other
questions? Seeing none, I don't have anyone signed up to speak for or against. Does anyone in the audience we'd like to speak for against the bill? Singing nonpresentative Johnson, would you like to close for your bill?
Representative Lee Johnson
Unverified
48:42
Madam Chair. Thank you. Members, I will work with DFNA
and get an amendment that clearly doesn't violate any laws, but it has some named products like automobiles, boats, electronic devices. I'm sure we can work together and I want to thank Paul. He's been very helpful in this bill, working to try to help us get it in a way that's, uh, I think very palatable and, and creates very minimal fiscal impact and allows us to sort of start our standardized process here in the state of Arkansas around this. issue and uh appreciate the time in the committee today. Thank you. Thank you.
Thank you for presenting. Appreciate it. Um, with that members, we're gonna
go down to HB 1687 representative Moore,
you're ready to present your bill. And if you'll come down and introduce yourself for the record and you'll
be recognized and members as a reminder, this is another one that we won't be able to take a vote on.
Speaker 107
49:40
We're doing presentation only. Thank you. Thank you, Madam Chair, Kendra Moore, District 23, House Bill 16. 97, is that right? 87. It's
meant to create equity between water districts and water authorities that provide the same service. So what is the difference, you might ask? Currently water districts and water authorities have all the same requirements to provide service. So I'll give you an example in Northwest Arkansas, there's the Beaver Water District that provides the infrastructure for the transmission, the treatment, and the wholesale service sales to cities and municipalities. ities For example, they service Fayetteville Rogers Springdale.
Then there's the Benton Washington Regional Public Water Authority. Again, they provide those same services, the infrastructure for transmission, the treatment, and the wholesale sales service to cities and municipalities and they serve a city such as Pea Ridge, Centerton, Silom Springs. There are currently 74 water authorities in the state. The main difference in the two is how the governing board. words are formed and their sales tax exemptions. Under current
law, water districts are exempt from sales tax while water authorities are not, neither type of utility formed under these two acts are considered for profit. They are both considered nonprofit, but only one is expected to pay sales taxes. Under Act 605 of 2021 and subsequently Act 545 of 2023. all water authorities are required to do those rate studies. By removing the sales
tax burden on water authorities, the end result is a cost savings which in turn can be passed through the utility's customers by helping reduce required and future rate increases. So again, I'll use the example of the Benton Washington Regional Public Water Authority. Their operations and maintenance budget for fiscal year 25 was 4.5 million. That does not include any personnel costs and that the sales tax rate of 9.5% in Benton
County, that would equate to an annual savings of about $430,000 that could be put back into the system or back into capital improvements without having to raise rates. This is a significant savings that could be achieved by simply putting water districts and water authorities on equal levels. Members, any questions? Seen none. I don't have anyone
signed up to speak for or against the bill. Would anyone like to speak for or
against the bill? Seeing none represent the more you're ready to close for your bill. I am closed for my bill and I sure appreciate your time, Chairman and committee. Thank you.
Thank you for presenting. Appreciate it. With that Representative Jean, I think you're going to present for Representative Volt HB 1732. And this is uh another one that we will do discussion only no vote. And
if you introduce yourself for the record.
Speaker 114
53:07
La Jean state representative District 99. Thank you,
Representative Lane Jean
Unverified
53:12
Madam Chair. This is a bill that we're not gonna take a vote on today. This is House Bill 1732 and what uh Representative Volt is trying to do here right now. Uh, if you're a teacher, you can have a a uh $1000 tax deduction out of stuff that you buy, it could be equipment, it could be uh clothes for a student that
cannot purchase it. The current law allows $1000 what she was trying to do here is to increase it to $2000 per teacher on a tax credit, but we're not taking a vote on it, but the law doesn't allow now 1000. It's about a $30,050,000 impact, but, but she's not, we're not running this today, but I'll, I'll take any questions on it.
members, any questions? Seeing a representative Ray, you're recognized. Um
Representative Jane, if I'm remembering correctly, I think, didn't we, did we bump this up in 2021, I think Representative. Tale may have had a bill. May have. I'm just wondering
when the last time we updated this was, you know, it's, it's, uh, the current limit
Representative Lane Jean
Unverified
54:29
is 500 if you're. 22 teachers and a family, it's 1000. This would double it from 1000 to 2000 if you're 22 teachers filing jointly.
I've slept since then Ray, and I, I think, I think Ribs and Tolland had had something to do with
the original one, but I, I can't, I can't. Me
for sure, um, and I know, I know that teachers sometimes do expend personal resources for classroom supplies, I guess I'm just curious if there's anyone if if there's any data on how much a teacher typically might expand. I'm sure it varies quite a bit. I'm sure I just wonder how many
teachers are spending over $1000 a year, this her bill,
Speaker 30
55:18
she may have those figures, but I don't. OK, thank you. But anyway, I'm, I'm, I'm closed for the bill. OK. Any
other questions, members? Thank you, Representative Jean for presenting and while you're down there, you just wanna
go ahead and present HB 1851 and members this is one that we'll be able to vote on, but Paul, you'll need to come down and explain why we're able to vote on this one. Get out of here, Paul.
Speaker 114
55:45
And if you wanna introduce yourself for the record, please. Langing State Representative District 99. Paul Gehring DFA.
Representative Lane Jean
Unverified
56:09
Am I recognized, go ahead. Yeah You're recognized. Thank you, ma'am. Uh, this is House Bill 1851.
What we're doing here, this is something that's already in practice, uh, this is allowing the food services that goes to our university campuses or our, our high school or public school cafeterias is is tax exempt, uh and all this does is clarify it. We have nonprofit, uh, people that prepare food for these uh colleges and, and, and, and also uh uh schools but also we have in some instances in
And campuses profit. People like our Mark, they're a pretty big food service that does a lot of our university campuses. We had a, uh, history of over in I think it was in Pine Bluff, UAPB, the local tax there when this was all supposed to be the tax for the food that is is brought in to serve for our students and faculty or uh was a uh charged a 2% tourism tax and all this bill does is to clarify uh The meaning of profit and
nonprofit, uh, food services that are providing uh food prepared meals for only students and faculty, and this is just a a clarification bill but this it had not add anything to it. It just clarifies the language on it and Paul can add something to it. Mr. Guerin, can
you introduce yourself and then, um, tell us Why there's no physical impact. Yes, Madam Chair, Paul
Speaker 85
57:43
Gehing, DFA DFA did assist in the drafting of this language to be
certain that it's would be consistent with our current practices for our audit staff, so we have an existing exemption in Arkansas law for these cafeterias that are there to provide food service for um our public schools and for our um colleges. Um, to make sure that if a public school makes a choice to either have their own cafeteria in-house service provided for the students and the faculty or contracts with a third party for-profit entity to provide
that exact same service that they would not have any difference in tax treatment for sales and use tax purposes, this language that's in Representative Jane's bill. It's consistent with our current practices already and we will be issuing a fiscal impact statement. It is In in the queue to be completed, it would be, it would have no revenue impact because this is exactly how we are treating those types of transactions currently by DFA. Thank you, members, are there any questions?
Seeing none, I represent a vote and you're recognized. I'll
Representative Jim Wooten
Unverified
58:55
have a motion as well. Lying James's handle it. Never mind. Thank you. OK, I don't have anyone
signed up to speak for or against the bill. Is there anybody in the audience who'd like to speak for or against. Representative Jean, would you like to close for your bill?
Speaker 116
59:11
I close and I make a motion do pass members,
we have a motion to pass any discussion? See that all in favor say aye. Polls say nay. Congratulations, your bill has passed. Thank you,
Speaker 72
59:23
Madam Chair. Thank you, members of the committee.
OK, that's gonna take us down to our last one on the agenda today, which is HB 1828 representative
Bro, if you'll come down and recognize yourself, um, and this is a, just
a reminder, this is another one that we won't be able to take a vote. On. Thank you. 1828. Yes, I, uh,
Speaker 124
59:54
I'm haulingro state representative District 6, and understand that won't be voted on today, but I do have um A sales tax exemption for inspiration point for the arts. In the center. This is to create a sales and
Representative Roger D. Lynch
Unverified
1:00:25
use tact exemption. You're just short and sweet. Members, are there any
questions? Just Representative right, you're recognized. Representative Brown, what, what is the, um, what is the organization that's getting the exemption, what do they do? Can you tell me a little
Speaker 124
1:00:50
bit about it? I'm glad you asked that. This, this is probably one of the best kept secrets of uh of
Arkansas. Uh, already it's, it's the opera. and it's already built. We're talking about a $40 million Opera house that's already built this just west of Eureka Springs, not in the city. But, uh, and they were to build some more dorms after that. This will give them some kind of a You'll be self-sustaining then
being able to uh get the tax
use exemption there. OK, I'm sorry, I. You said it was an opera house, I mean, do you know, do you have any idea if it would um qualify under
the exemption that Representative Lee Johnson presented earlier, you know what, how much their annual operating budget is. I really don't, but it's, it's
Speaker 124
1:01:55
going to be a big deal. It's
gonna be one of the biggest ones in the country, not just this state, but hey, I've been to the Opry, but not the opera. This is big time. They've already built it. We talk about $40 million and they want to add on some and uh that was built through a grant, but uh But now it's just to keep it going and add on a few things. OK, thank you. OK. Members, any other questions?
Seeing none, I don't have anybody signed up to speak for or against the bill. Is there anyone I'd like to speak
for or against the bill? Seeing none, Representative Bro, would you like
Speaker 124
1:02:40
to close for your bill? I would like to. Thank you. Thank you very much, uh, and, uh. I asked for a good vote.
Thank you. Thank you, Representative Bro. um, members, as you know has the physical impacts Fando would
take a vote today, but thank you for presenting Richard and Bro. Appreciate it. Um, members with that, we don't have any other bills to hear and so we're going to be adjourned.
Agenda
Number Sponsor Subtitle
HB1657 Beck TO AMEND THE ARKANSAS WOOD ENERGY PRODUCTS AND FOREST MAINTENANCE INCOME TAX CREDIT.
REGULAR AGENDA
Number Sponsor Subtitle
HB1026 A. Collins TO CREATE THE ARKANSAS PROMISE ACT; AND TO CREATE AN INCOME TAX CREDIT FOR TUITION PAID FOR AN ELIGIBLE STUDENT AT A PUBLIC INSTITUTION OF HIGHER EDUCATION.
HB1216 Long TO CREATE THE FREE MARKET ZONES ACT; AND TO EXEMPT A BUSINESS LOCATED IN AN OPPORTUNITY ZONE FROM THE INCOME TAX, THE CORPORATE FRANCHISE TAX, AND THE ELECTIVE PASS-THROUGH ENTITY TAX.
HB1469 Beaty Jr. TO CREATE THE BROADBAND EXPANSION AND EFFICIENCY ACT; AND TO CREATE A SALES AND USE TAX EXEMPTION FOR MACHINERY AND EQUIPMENT USED IN PRODUCING BROADBAND COMMUNICATIONS SERVICES.
HB1472 Beaty Jr. TO CREATE A SALES AND USE TAX EXEMPTION FOR PARTS PURCHASED TO REPAIR AGRICULTURAL EQUIPMENT AND MACHINERY AND TIMBER EQUIPMENT AND MACHINERY AND PARTS AND SERVICES PURCHASED TO REPAIR A GRAIN BIN.
HB1636 Ray TO AMEND THE ARKANSAS SOFT DRINK TAX ACT, AS AFFIRMED BY REFERRED ACT 1 OF 1994; AND TO PHASE OUT THE SOFT DRINK TAX BASED ON SALES TAX COLLECTIONS FROM SALES OF SOFT DRINKS.
HB1671 L. Johnson TO AMEND THE LAW CONCERNING THE GROSS RECEIPTS TAX; AND TO CREATE A GENERAL SALES AND USE TAX EXEMPTION FOR SALES TO QUALIFIED NONPROFIT ORGANIZATIONS.
HB1687 K. Moore TO PROVIDE THAT A WATER AUTHORITY IS EXEMPT FROM ALL EXCISE TAXES.
HB1732 Vaught TO INCREASE THE AMOUNT OF THE INCOME TAX DEDUCTION ALLOWED FOR A TEACHER'S CLASSROOM INVESTMENT.
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.
HB1787 Warren TO PROVIDE AN INCOME TAX EXEMPTION FOR CERTAIN RETIREMENT BENEFITS RECEIVED BY LAW ENFORCEMENT OFFICERS AND FIREFIGHTERS.
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.
HB1807 Eaves TO AMEND THE SALES TAX EXEMPTION FOR AIRCRAFT HELD FOR RESALE AND USED FOR RENTAL OR CHARTER; AND TO CLARIFY THE PERSONS ELIGIBLE FOR THE SALES TAX EXEMPTION FOR AIRCRAFT HELD FOR RESALE AND USED FOR RENTAL OR CHARTER.
HB1809 Warren TO ALLOW FOR PROPERTY OWNED BY A TRUST OR A LIMITED LIABILITY COMPANY TO QUALIFY AS A HOMESTEAD FOR PURPOSES OF THE PROPERTY TAX EXEMPTION FOR DISABLED VETERANS IN CERTAIN CIRCUMSTANCES.
HB1822 Underwood THE OVERTIME BUT NOT OVERTAXED ACT.
HB1828 Breaux TO CREATE A SALES AND USE TAX EXEMPTION FOR INSPIRATION POINT CENTER FOR THE ARTS, INC.
HB1851 Jean TO AMEND THE SALES TAX EXEMPTION FOR FOOD, FOOD INGREDIENTS, AND PREPARED FOOD SOLD IN A PUBLIC, COMMON, HIGH SCHOOL, OR COLLEGE CAFETERIA OR DINING FACILITY.
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.
SB422 C. Tucker TO ALLOW NONPROFIT ORGANIZATIONS TO CONTRIBUTE TO A NEW OR EXISTING ARKANSAS BRIGHTER FUTURE FUND PLAN ACCOUNT; AND TO REQUIRE THE TREASURER OF STATE TO FACILITATE CONTRIBUTIONS BY A NONPROFIT ORGANIZATION.
Documents
| Title | Type | Pages | Source |
|---|---|---|---|
| Agenda — REVENUE & TAXATION- HOUSE, Apr 1, 2025 | Agenda | 4 | Official source ↗ |
Speakers
Representative David Ray Chair
Unverified
Representative Rick Beck
Unverified
Speaker 13
Brad Harville
Unverified
Representative Frances Cavenaugh Chair
Unverified
Representative Lane Jean
Unverified
Representative Jim Wooten
Unverified
Speaker 34
Representative Roger D. Lynch
Unverified
Representative Rick McClure
Unverified
Representative Les Warren
Unverified
Speaker 71
Representative Lee Johnson
Unverified
Speaker 85
Speaker 93
Representative Les D. Eaves
Unverified
Speaker 101
Speaker 75
Speaker 90
Speaker 107
Speaker 114
Speaker 30
Speaker 116
Speaker 72
Speaker 124