Revenue & Taxation- House
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Transcript
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Bills discussed (48)
| Bill | Title | Sponsor | Status |
|---|---|---|---|
|
HB1116
· 5 mentions in agenda, chapter, transcript
Matched: “…rd McGrew SPECIAL ORDER OF BUSINESS Number Sponsor Subtitle 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. |
|
HB1594
Act 621
· 4 mentions in chapter, agenda, transcript
Matched: “HB1594 Vaught TO CREATE A FARMER SALES TAX IDENTIFICATION CARD; AN…”
|
TO CREATE A FARMER SALES TAX IDENTIFICATION CARD; AND TO RELIEVE A SELLER OF SALES … | Vaught | Notification that HB1594 is now Act 621 |
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HB1538
· 3 mentions in agenda, chapter, transcript
Matched: “…LE BUSINESS ASSETS TO THE AMOUNT ALLOWED UNDER FEDERAL LAW. HB1538 Ray TO AMEND THE LAW CONCERNING THE NET OPERATING LOSS INCO…”
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TO AMEND THE LAW CONCERNING THE NET OPERATING LOSS INCOME TAX DEDUCTION; AND TO INCREASE … | Ray | Died in House Committee at Sine Die adjournment. |
|
SB200
Act 329
· 3 mentions in chapter, agenda, transcript
Matched: “SB200 K. Hammer TO INCLUDE TEXTBOOKS AND OTHER INSTRUCTIONAL MATE…”
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TO INCLUDE TEXTBOOKS AND OTHER INSTRUCTIONAL MATERIALS THAT ARE LEASED IN THE EXEMPTION FROM THE … | K. Hammer | Notification that SB200 is now Act 329 |
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SB263
Act 330
· 3 mentions in transcript, chapter, agenda
Matched: “…hank you Madam Chair. Good morning, committee. Very simply, SB 263 is just the Senate mirror bill to the homestead tax credit…”
|
TO INCREASE THE HOMESTEAD PROPERTY TAX CREDIT. | Crowell | Notification that SB263 is now Act 330 |
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HB1018
· 2 mentions in agenda, chapter
Matched: “…ES AND NONRESIDENTS. REGULAR AGENDA Number Sponsor Subtitle HB1018 Hudson TO CREATE THE STRONG FAMILIES ACT; AND TO CREATE AN…”
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TO CREATE THE STRONG FAMILIES ACT; AND TO CREATE AN INCOME TAX CREDIT FOR EMPLOYERS … | Hudson | Died in House Committee at Sine Die adjournment. |
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HB1076
· 2 mentions in chapter, agenda
Matched: “HB1076 Hudson TO CREATE THE CARING FOR CAREGIVERS ACT; AND TO PROV…”
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TO CREATE THE CARING FOR CAREGIVERS ACT; AND TO PROVIDE AN INCOME TAX CREDIT FOR … | Hudson | Died in House Committee at Sine Die adjournment. |
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HB1190
· 2 mentions in chapter, agenda
Matched: “HB1190 Vaught TO CREATE AN INCOME TAX EXEMPTION FOR TEACHERS.”
|
TO CREATE AN INCOME TAX EXEMPTION FOR TEACHERS. | Vaught | Died in House Committee at Sine Die adjournment. |
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HB1366
· 2 mentions in chapter, agenda
Matched: “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
· 2 mentions in agenda, chapter
Matched: “…O CREATE AN INCOME TAX CREDIT FOR QUALIFIED STORM SHELTERS. HB1388 Vaught TO EXEMPT CERTAIN STORAGE SERVICES FROM SALES TAX; A…”
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TO EXEMPT CERTAIN STORAGE SERVICES FROM SALES TAX; AND TO EXEMPT THE SERVICE OF FURNISHING … | Vaught | Died in House Committee at Sine Die adjournment. |
|
HB1500
· 2 mentions in agenda, chapter
Matched: “…URT FROM SALES TAX, AS AFFIRMED BY REFERRED ACT 19 OF 1958. HB1500 Beaty Jr. TO ENHANCE ECONOMIC COMPETITIVENESS BY REPEALING…”
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TO ENHANCE ECONOMIC COMPETITIVENESS BY REPEALING THE THROWBACK RULE. | Beaty Jr. | Died in House Committee at Sine Die adjournment. |
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HB1501
· 2 mentions in agenda, chapter
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. |
|
HB1540
· 2 mentions in agenda, chapter
Matched: “…ARD PERIOD FOR THE NET OPERATING LOSS INCOME TAX DEDUCTION. HB1540 J. Mayberry TO AMEND THE INCOME TAX CREDIT AND THE INCOME T…”
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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. |
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HB1599
· 2 mentions in chapter, agenda
Matched: “HB1599 Torres TO PROVIDE FOR CERTAIN PROPERTY TO BE EXEMPT FROM TA…”
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TO PROVIDE FOR CERTAIN PROPERTY TO BE EXEMPT FROM TAXATION. | Torres | WITHDRAWN BY AUTHOR |
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HB1636
· 2 mentions in chapter, agenda
Matched: “HB1636 Ray TO AMEND THE ARKANSAS SOFT DRINK TAX ACT, AS AFFIRMED B…”
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TO AMEND THE ARKANSAS SOFT DRINK TAX ACT, AS AFFIRMED BY REFERRED ACT 1 OF … | Ray | Recommended for study in the Interim by the … |
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HB1657
Act 709
· 2 mentions in chapter, agenda
Matched: “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 |
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HB1665
· 2 mentions in chapter, agenda
Matched: “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. |
|
HB1670
· 2 mentions in chapter, agenda
Matched: “HB1670 L. Johnson TO CREATE THE PRECEPTOR TAX INCENTIVE PROGRAM; A…”
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TO CREATE THE PRECEPTOR TAX INCENTIVE PROGRAM; AND TO PROVIDE INCENTIVES FOR CERTAIN MEDICAL OR … | L. Johnson | WITHDRAWN BY AUTHOR |
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HB1671
Act 1007
· 2 mentions in chapter, agenda
Matched: “HB1671 L. Johnson TO AMEND THE LAW CONCERNING THE GROSS RECEIPTS T…”
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TO AMEND THE LAW CONCERNING THE GROSS RECEIPTS TAX; AND TO CREATE A GENERAL SALES … | L. Johnson | Notification that HB1671 is now Act 1007 |
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HB1674
· 2 mentions in agenda, chapter
Matched: “…X EXEMPTION FOR SALES TO QUALIFIED NONPROFIT ORGANIZATIONS. HB1674 L. Johnson TO CREATE AN INCOME TAX CREDIT FOR CONTRIBUTIONS…”
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TO CREATE AN INCOME TAX CREDIT FOR CONTRIBUTIONS TO CERTAIN RURAL HOSPITAL ORGANIZATIONS; AND TO … | L. Johnson | WITHDRAWN BY AUTHOR |
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HB1687
· 2 mentions in chapter, agenda
Matched: “HB1687 K. Moore TO PROVIDE THAT A WATER AUTHORITY IS EXEMPT FROM A…”
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TO PROVIDE THAT A WATER AUTHORITY IS EXEMPT FROM ALL EXCISE TAXES. | K. Moore | Died in House Committee at Sine Die adjournment. |
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HB1691
Act 497
· 2 mentions in agenda, chapter
Matched: “…IDE THAT A WATER AUTHORITY IS EXEMPT FROM ALL EXCISE TAXES. HB1691 Torres TO PROVIDE FOR CERTAIN PROPERTY TO BE EXEMPT FROM TA…”
|
TO PROVIDE FOR CERTAIN PROPERTY TO BE EXEMPT FROM TAXATION; AND TO PROVIDE THAT CERTAIN … | Torres | Notification that HB1691 is now Act 497 |
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HB1698
· 2 mentions in chapter, agenda
Matched: “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. |
|
HB1702
· 2 mentions in chapter, agenda
Matched: “HB1702 Wooldridge TO AMEND THE SALES AND USE TAX EXEMPTIONS FOR CE…”
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TO AMEND THE SALES AND USE TAX EXEMPTIONS FOR CERTAIN MACHINERY AND EQUIPMENT USED IN … | Wooldridge | Died in House Committee at Sine Die adjournment. |
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HB1708
· 2 mentions in chapter, agenda
Matched: “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. |
|
HB1015
· 1 mention in agenda
Matched: “…NABLE AVIATION FUEL. 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. |
|
HB1019
· 1 mention in agenda
Matched: “…AND TO CREATE AN INCOME TAX CREDIT FOR DEPENDENT CHILDREN. 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…”
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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. |
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HB1026
· 1 mention in agenda
Matched: “…E TAX CREDIT FOR CERTAIN EARLY CHILDHOOD EDUCATION WORKERS. 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. |
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HB1063
Act 875
· 1 mention in agenda
Matched: “…IGIBLE STUDENT AT A PUBLIC INSTITUTION OF HIGHER EDUCATION. 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 |
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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. HB1066 R…”
|
TO CREATE THE INFLATION REDUCTION ACT OF 2025. | Ray | Died in House Committee at Sine Die adjournment. |
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HB1066
· 1 mention in agenda
Matched: “…. HB1065 Ray TO CREATE THE INFLATION REDUCTION ACT OF 2025. HB1066 Ray TO INCREASE THE STANDARD DEDUCTION. HB1216 Long TO CREA…”
|
TO INCREASE THE STANDARD DEDUCTION. | Ray | Died in House Committee at Sine Die adjournment. |
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HB1072
Act 876
· 1 mention in agenda
Matched: “…LICENSED CHILDCARE PROVIDERS; AND TO DECLARE AN EMERGENCY. HB1072 C. Cooper TO CLARIFY THE REQUIREMENTS FOR ESTABLISHING ELIG…”
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TO CLARIFY THE REQUIREMENTS FOR ESTABLISHING ELIGIBILITY FOR THE PROPERTY TAX EXEMPTION FOR DISABLED VETERANS, … | C. Cooper | Notification that HB1072 is now Act 876 |
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HB1203
· 1 mention in agenda
Matched: “…VETERANS, SURVIVING SPOUSES, AND MINOR DEPENDENT CHILDREN. HB1203 Underwood TO PROTECT ARKANSAS TAXPAYERS FROM A TAX TO COLLE…”
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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: “…ACT OF 2025. HB1066 Ray TO INCREASE THE STANDARD DEDUCTION. HB1216 Long TO CREATE THE FREE MARKET ZONES ACT; AND TO EXEMPT A B…”
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TO CREATE THE FREE MARKET ZONES ACT; AND TO EXEMPT A BUSINESS LOCATED IN AN … | Long | Died in House Committee at Sine Die adjournment. |
|
HB1303
Act 546
· 1 mention in agenda
Matched: “…BUSINESS – Thursday, March 13, 2025 Number Sponsor Subtitle 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 |
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HB1404
· 1 mention in agenda
Matched: “…TO PROTECT ARKANSAS TAXPAYERS FROM A TAX TO COLLECT TAXES. HB1404 C. Cooper TO CREATE A TAX CREDIT FOR CONTRIBUTIONS TO A PRE…”
|
TO CREATE A TAX CREDIT FOR CONTRIBUTIONS TO A PREGNANCY RESOURCE CENTER. | C. Cooper | Died in House Committee at Sine Die adjournment. |
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HB1435
· 1 mention in agenda
Matched: “…TE FRANCHISE TAX, AND THE ELECTIVE PASS-THROUGH ENTITY TAX. 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. |
|
HB1438
· 1 mention in agenda
Matched: “…CREDIT FOR CONTRIBUTIONS TO A PREGNANCY HELP ORGANIZATION. 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. |
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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…”
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TO CREATE A SALES AND USE TAX EXEMPTION FOR PARTS FOR AND REPAIR OF AGRICULTURAL … | Vaught | Died in House Committee at Sine Die adjournment. |
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HB1469
· 1 mention in agenda
Matched: “…EPAIR Page 3 of 4 OF AGRICULTURAL EQUIPMENT AND MACHINERY. HB1469 Beaty Jr. TO CREATE THE BROADBAND EXPANSION AND EFFICIENCY…”
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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. |
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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…”
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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. |
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HB1485
· 1 mention in agenda
Matched: “…ERY AND PARTS AND SERVICES PURCHASED TO REPAIR A GRAIN BIN. HB1485 K. Brown TO CREATE A SALES AND USE TAX EXEMPTION FOR SALES…”
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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. |
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HB1658
Act 550
· 1 mention in agenda
Matched: “…D ENERGY PRODUCTS AND FOREST MAINTENANCE INCOME TAX CREDIT. HB1658 Nazarenko TO AMEND THE LAW CONCERNING THE PAYMENT OF PROPER…”
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TO AMEND THE LAW CONCERNING THE PAYMENT OF PROPERTY TAXES; AND TO DEFINE "DEPLOYMENT" FOR … | Nazarenko | Notification that HB1658 is now Act 550 |
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HB1685
Act 1008
· 1 mention in chapter
Matched: “HB1685 Underwood TO CREATE THE GROCERY TAX RELIEF ACT; TO AMEND TH…”
|
TO CREATE THE GROCERY TAX RELIEF ACT; TO AMEND THE LAW CONCERNING THE SALES AND … | Underwood | Notification that HB1685 is now Act 1008 |
|
SB219
Act 380
· 1 mention in chapter
Matched: “SB219 J. Dismang TO REPEAL THE SUNSET PROVISION OF THE ARKANSAS M…”
|
TO REPEAL THE SUNSET PROVISION OF THE ARKANSAS MEDICAL MARIJUANA SPECIAL PRIVILEGE TAX ACT OF … | J. Dismang | Notification that SB219 is now Act 380 |
|
SB2631
· 1 mention in transcript
Matched: “hear the bills and we're gonna hear Bill SB 2631, then we're gonna hear Representative Ray with his special…”
|
Pre-2017 bill |
Machine transcript
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hear the bills and we're gonna hear Bill SB 2631, then we're gonna hear Representative Ray with his special order HB 1116, then we'll hear HB 1594. Then we'll hear SB 200. And then we should be able to hear HB 1538 also. And with that Representative Schultz, if you'll come down to the end of the table and introduce yourself and you'll be recognized to present your bill.
Representative Bart Schulz
Unverified
0:42
Which, by the way, we can take a vote on. Thank you. Thank you Madam Chair. Good morning, committee. Very simply, SB 263 is just the Senate mirror bill to the homestead tax credit bill we passed unanimously out of the house a week before last. Uh, with that, I would appreciate a good vote. Members,
any questions? say none. Are your clothes for your bill,
Representative Schultz? I'm closed for my bill. Thank you. Motion at the proper time. I got a motion to pass. Motion pass. All in favor say aye. Opposed say nay. Congratulations, your bill has passed. Thank you. Thank you. With that, we're going to have Representative Ray go down to the end of the table and he's going to be presenting HB1116, um, and as a reminder, this is one that we will just be hearing today and debating, we won't be able to take a vote. Um, and there is also going to
be some handouts for this bill, so those will be handed out for you
Representative David Ray
Unverified
1:50
also. And Representative Ray, if you're re introduce yourself and you'll be recognized. All right, is it OK if I have my guests join me?
Speaker 17
2:01
OK. All right, David Ray, State Representative, District 69. Andrew Wilford, uh, director of the National uh of the Interstate commerce initiative at the National Taxpayers Union Foundation.
Representative David Ray
Unverified
2:17
You're recognized. Do you want me to wait for the handouts or just go ahead, go ahead, they're almost done. OK. All right, good morning committee. Um, This is House Bill 1116. It deals with the topic of remote and mobile work. So As everyone I'm sure is aware our economy and particularly our labor force are more mobile than ever before. People travel all the time for work. They travel to conferences, they traveled to meet with clients, they travel
for a whole host of reasons to give you just a few statistics, um, more than 1 out of 10 full-time employees in the United States worked from home last year. Um, almost 3 out of 10 full-time employees, um, according to surveys worked some sort of hybrid model where they were remote for part of the time and in person for part of the year. Uh, many more workers traveled to a different state, uh, for more than um more than one state in which their employer is located. The result is there's
millions of taxpayers that face complicated income tax filings. There was a recent study from or a recent survey from the Tax Foundation that showed 88% of Americans agree that the US tax code is either overly complex or at least somewhat complex. I'd like to meet the 12% that didn't think it was very complex. Um, I became interested in this issue when I read a report that Andrew here had written for the National Taxpayers Union. And they rank states each year
based on uh how their tax code affects remote and mobile workers and Arkansas in their rankings came in 45th out of 50. That's obviously not a place that we would want to be, um, so I started working on this bill and the Andrew has, has told me that if we were to adopt this bill, we would move from 45th in their rankings to 17th. Um, Arkansas, uh, as I mentioned, our policies were near the bottom in this, in this regard, um. Policies are so draconian that
if you earn even a single dollar of income in the state in a given year, you were required by law to file an income tax return that even if you don't have any tax liability, uh, I just think that's a very highly unrealistic expectation. Somebody that attends a conference for 3 days in Little Rock, uh, is probably not going to follow through and file that income tax return, but if they're following the law, you know, that creates a pretty um uh in my opinion and unnecessary compliance burden. If you're a business from
another state and you have a worker that travels to Arkansas, um, you're required to begin withholding income tax for that worker almost immediately, uh, you know, creating a compliance burden on behalf of that business. Uh, even if the worker's just here for a minimal amount of time. Thankfully, we can do some pretty simple things to fix that in our tax code. The goal of this legislation is to simplify and modernize our tax code by creating some basic thresholds for income tax filing and
withholding for uh out of state workers so that we don't impose an outsized burden on those who briefly traveled through our state. Um, so this bill does 3 things. It basically, number one, it puts in place a filing threshold of um $2500 and the, you know, these are thresholds that taxpayers must exceed before being required to file an income tax return. The second thing that it does is it establishes a withholding
threshold of 14 days. These are, uh, and thresholds that employees must exceed before the employer is required to begin withholding income tax on their behalf. Um, that's particularly a burden for businesses, especially small and medium sized businesses that have employees that travel for work. And it also is a burden on the taxpayer if you don't have any threshold for withholding. And you're someone that doesn't earn enough income to have a tax liability, then at the end of the year, you have to file a tax
return just to, just to get your withholdings back as a refund, um, there are 24 states that have at least some threshold that employees must exceed before their employer is required to begin withholding income taxes. Unfortunately, Arkansas isn't one of them. Uh, I would point out that even in California, uh, their state doesn't require businesses to withhold. Um, until an employee earns $1500 in Illinois is another state that's not necessarily known for
being all that um friendly regard to business and and taxes. They have a 30 day threshold for withholding. Um The third thing the bill does is it allows for the Department of Finance and Administration to establish um state reciprocity agreements. So under these types of agreements, states allow taxpayers who comm commute across state lines to pay income tax only in the state of their residence, and there's currently about 30 reciprocal agreements
across 16 states, uh, in the country currently and these, these sorts of reciprocity agreements really. simplification, um, without reciprocity taxpayers are generally required to file an income tax return in both states, but the state where they live and the state where they work and then they claim a credit for taxes paid, uh, to the state, their workplace is located in against the taxes owed to the state of their residences. Um, this also results in the
commuting taxpayer paying uh the higher of the states to tax rates, um, and so reciprocity agreements not only benefit workers. They're also good for the states themselves, um, high-tech states can maintain job opportunities while lower tax states can attract residents and both states enjoy easier administration and reduced compliance costs for their taxpayers. Um I think with that, um, I will just state that there's a
lot of organizations that have looked at this bill and um spoken favorably about it, um, Americans for Prosperity, the Tax Foundation, National Taxpayers Union have all issued positive comments about the bill as well as NFIB and the state chamber support the bill as well. So with that, um, Andrew, do you have anything you want to add? The Yeah,
Speaker 26
8:54
thank you, uh, Representative Ray. Thank you members of the committee for the opportunity to speak with you
Speaker 27
9:05
today, um, David, introduced the Rome index to you, so I won't, I won't belabor that, but um, you know, as you mentioned, 45th out of 50, uh, currently on the Rome index, um, because the state has just no de minimis thresholds whatsoever from the very first dollar you earn, you are required to file an income tax return. Your employer is required to with. on your behalf. Um, I think Arkansas wants to be a state that has a competitive tax code, um, certainly it wants to be a
head of states, like, as David mentioned, uh, you know, Illinois, New York, California, um, not only does Illinois have a 30 day withholding threshold. They also have a 30 day filing threshold, um, New York, uh, a state that was uh that rather infamously required um non-residents who came to New York City during the pandemic to pay income taxes even though they are volunteering to, you know, help with the, the surge at the time, um, they have a 14 day
withholding threshold and California, which is, you know, in the, in the dictionary next to aggressive tax enforcement, um, 15 $1500 withholding threshold, um, you know, I think those are states that uh Arkansas not only wants to, uh, wants to be in line with, I think it wants to be ahead of. So, uh, that's, that's not currently the case, unfortunately. Um, it's not just the states that have uh that have some measure of simplification for uh for remote
and mobile workers, workers in the new economy. Indiana, Montana, Nebraska all passed database thresholds um over the last couple of years. Even in Alabama, one of the few states that actually currently ranks lower than Arkansas on the Rome index, um, they're 46. So just behind. There was a bill introduced just a few days ago that would uh that would introduce a database withholding threshold, um, closer to home, every single state neighboring
Arkansas ranks higher on the Rome index than Arkansas does. So what does that mean? Um, means more than just a number, it means that uh businesses looking where, you know, organizations seeking to hold a conference, um, odds are there's less paperwork involved doing it in any one of Arkansas's neighbors than in Arkansas. Uh, same with business retreats, um, business wants to hold a retreat. Odds are that they can, they can do it with less paperwork in in
Arkansas's neighbor than they can here in Little Rock. Construction jobs. A lot of these tend to be short term, um, they're between 22, uh, 2 opportunities, one in Arkansas, one in the neighboring state, well, That neighboring state has the advantage of not uh not creating a tax compliance burden on top of it. And then the last one I'd mentioned sales, um, if you have a client that, uh, you want to meet with. If you come in person, there's a tax filing obligation. If you
Speaker 16
12:10
zoom, you know, you don't, you don't fly in, you don't, uh,
Speaker 27
12:14
you don't use, you don't buy anything while you're here, then uh then there's not one. So uh there's a real, real difference between the two. Fundamentally it means that there's a real compliance burden to any sort of short term work or opportunities here in Arkansas. Um, the only way there's not, and this is a pretty common thing is if people just don't comply with the law
and that's generally not done out of, you know, malice or intentionality. It's the fact that if you speak to the average person who's not, you know, working in tax all the time. And tell them that for a single day they're expected to file a tax return, and their employer is expected to withhold on their behalf. That's just, that's just a mind blowing concept to most people. Um, I think the average person understands that if they commute to a state, that that creates some uh that creates some tax liability um and if
they're there for, you know, very long extended period of time that creates tax liability, but the idea that a single day or even a few days, even a few weeks or a couple weeks creates. Tax tax liability, um, that's just not intuitive to the average person. So at the end of the day, this bill is a common sense change that would ensure that new economy workers aren't being harassed out of Arkansas over what are really, you know, pretty small tax bills, um, and along with that it ensures that Arkansas isn't missing out on
those opportunities, um, over, over a few dollars, um, and as well, uh, you know, along with that, it helps to realign tax obligations. with, you know, when a reasonable person would expect them to apply. Um, taxes are never gonna be intuitive, they're never going to be simple. There's probably always gonna be some level of uh tax preparer help that needed with filing a tax return, but at the very least, when you have to pay taxes should be intuitive, so thank you again for your time and I'm happy to answer any questions.
Thank you for sending any questions
Representative Rick McClure
Unverified
14:19
members? Representative McClure, who recognized a quick question. Thank you for the bill. I understand it completely. I think I understand it completely, but my question is on the res yeah. Yeah, thank you. I need another cup of reciprocity Arkansans on the backside of this, Arkansans that are working out of state. If we do this, so if I'm understanding this correctly, then as an Arkansan
working out of state, this simplifies my state income tax because it's now considered all in
state income. Is that correct? Yeah,
yeah, that, that's correct. OK, thank you. Any other
Representative Roger D. Lynch
Unverified
15:04
questions, members? Representative Lynch, you recognized. I'm pretty sure I understand this, but
uh. The $2500 floor. Uh, that is not in conflict with the 15-day filing period, right?
Representative David Ray
Unverified
15:16
I mean, the 2500 remains in effect. That's right. So, um, groups like the National Taxpayers Union, they prefer that states have um wage-based threshold. No, no, no, sorry, they prefer that states have database thresholds, um, is that right? Yeah. I had Initially proposed a wage-based threshold, um, on both of the, sorry, I initially proposed a day-based threshold on both of
these, um, but the feedback that I got from DFNA was it would be much easier for individuals to um to, to calculate the filing threshold based on income rather than day-based, so I changed that up in the bill. I don't know if that answers your question or not. I
Representative Roger D. Lynch
Unverified
16:03
just wanted to make sure that the 15 days didn't give me a way of shifting my income around to
Speaker 45
16:10
avoid. Hemp tax No, you would, you would still owe the 2500. That's right, yeah, I mean you would still owe
Representative David Ray
Unverified
16:19
the income tax for the full period that you worked in the state, the, the, the employer would just not
be required to begin withholding until you sort of
Speaker 17
16:28
met that threshold of Yeah, right, so the, the 15 day threshold is for employer withholding and the $2500 threshold is for when you personally have to file an income tax return, so even if you are not there for 15 days, you, you personally still have to file an income tax return. Your employer just doesn't have to withhold on your behalf. Thank
Representative Ry
Unverified
16:51
you, I didn't explain that very well. Representative right you recognized. Thank you. Thank you, Madam Chairman. Uh,
Representative Johnny Rye
Unverified
17:00
Representative David, on this one, this 2500, is that the highest one if we pass this,
Representative David Ray
Unverified
17:06
will that be the highest one across the nation? No, definitely not, um, that, that's actually
a a pretty modest threshold compared to what a lot of the other states have, um, there, in fact, there's, there's one group, um, council for State
Taxation that issued some comments on my bill that said that. The direction of the bill was generally good, but they didn't think the thresholds that I established were high enough, um, but my thought process was, since we don't have any thresholds in the law, it would be better to just get some thresholds in place and if that works out, you know, down the road we could look at at making them better, um,
but Andrew can probably comment on how 2500 would compare to other states.
Speaker 16
17:53
Yeah, there's, there's several states that have uh 30 day thresholds.
Speaker 27
17:56
Um, including, um, Indiana and Montana that just passed in this past year, Illinois has a 30 day threshold um several other states have 30 day thresholds just for withholding, and not for filing, um, the reason that generally day-based thresholds are preferred, you know, David mentioned the difference between a wage and Dave or and uh and uh database threshold earlier. The reason that we generally prefer database thresholds is that it's
a lot more um intuitive to know. How many days you spent in the state versus how much, how much income you earned, especially if you're not earning, um, you know, even if your salaried, what, uh, you know, what your income divided by 260 or however many working days there are in a year, that's not, that's not a natural calculation for someone to do, um, whereas, you know, I was here for 15 days, that's generally, you know whether you were there for 15 days or not, um, so that's the reason that generally databas are preferred and uh and yeah, this doesn't
get. As far as what a lot of states around the country are doing and uh I certainly be happy to see Arkansas do more, but at the same time, I think that Representative Ray's goal here is to uh
Speaker 28
19:04
is to take a step in the, in the right direction, and that's something that we certainly approve of. OK, you follow it,
Representative Ry
Unverified
19:15
please. No need to ask for follow-up. OK, thank you. Uh, on our states around us, we were looking at a map, um.
Once we go with this 2500, where will we be sitting with all of the
Speaker 16
19:32
states around us. Can you give us something on that, Andrew? Yeah, so there, I mean, obviously, uh, you have two states bordering
Speaker 27
19:38
you that have no income tax at all, so it's going to be hard to beat that um just by virtue of the fact that if a state doesn't have an income tax, then there's obviously no income tax obligations, um, but, uh, Louisiana has a 25 day uh threshold, um, and but I, I
think that that uh that 2500 would be Missouri, um, and I, I believe
Representative Les D. Eaves
Unverified
20:10
Thank you, thank you, thank you, uh, Madam Chair.
Representative A you recognize. Thank you, Chairman. Representative Ray on the legal analysis, there's 3 paragraphs, um, that are, I guess from DFNA that maybe recommendations. For at least Consideration on things that might be needed to make the bill better.
I guess, um, specifically on page 3, have you given any thought to
Representative David Ray
Unverified
20:39
um any of those suggestions. I have not, but I would be happy to meet with them and better understand, you know, what, what amendments they would want to
make and if we were if we were going to proceed with this, then I would certainly be open to amending and just make this as
Representative Les D. Eaves
Unverified
20:54
functional as as possible. I think it's a great bill, but especially the last one there might be something you wanna think about, certainly you'll be
Speaker 13
21:02
able to do what you want, but um But it'd be something to look at. I would
be open to amending. Any other questions, members? Seeing none, uh, DFNA, do you have anything you'd like to add to this bill about this bill? Only if there are questions. Anybody have any questions for DFA? Your lucky day and nobody has any questions for you. It's hard to believe, but OK. With that representative right you recognize the close for your
bill. Well, thank you for your uh I forgot to ask. Anybody here to speak for
or against the bill. I don't have anybody signed up, but
Representative David Ray
Unverified
21:45
Saying none, now you're recognized, thank you, madam. I appreciate everybody's attention, you know, I guess I would just close by saying that um remote and mobile work are not passing fades. This, this is becoming part of our economy, and there are changes to our workplace and our economy that we should reflect the reality of those changes, um, this trend
can be an opportunity for states that are willing to make adjustments to their tax code to make ourselves more hospitable and convenient to remote and mobile work. Um, and it can be an impediment for states that are determined to not make changes and stick with policies that don't acknowledge a changing economy. Um, we want our state to be as economically competitive as possible and you know, I don't want to get hung up on all these rankings and stuff, but I do think they are um Illustrative of where we're
heading and the fact that just by adopting this simple bill, we would move from 45th to 17th in the Rome index, and then if you look at the handout from the Tax Foundation, we would increase two spots on their subcategory of income tax, um, I think for a relatively modest amount of revenue impact, we could, we could really improve our competitiveness in that regard, so, uh, I appreciate everybody's attention and if any would like to co-sponsor the bill, I'd be happy to add an amendment to add co-sponsors, so
I'm closed. Thank you, Representative Ray, I appreciate you
presenting the bill. Thank you for coming to testify. We appreciate it. Um, with that members we're going to move down to HB 1594 representative Vault and just for the committee, this is one that we can actually take a vote on. So, um, if you'll be prepared, um, representative Val, if you're introduce yourself for the record and your guest and you will be recognized. DM District 87.
Representative Roger D. Lynch
Unverified
23:43
Mark, hello, Mark Lambert, uh, Arkansas Farm Bureau. Thank you, you recognize, present your bill. Thank you, ma'am. Um, so
Representative DeAnn Vaught
Unverified
23:51
we lose lots of revenue to other states, uh, because of the cumbersome um way that we do our farm tax, uh, I. How we do our farm tax from when we go to a business and buy something that's for a farmer, which were very Vague on what that is anyway, uh, what they can actually get,
uh, tax-free. So this will just give us a tax ID card for farmers to be able to use whenever they go buy stuff that is actually tax-free, uh, stuff, uh, for their farms, um. Oklahoma does this, Texas does this. There's other border states that do this and we actually lose revenue to other states because farmers can go across a a line and actually get things uh tax-free on the other side. I want to make it where they wanna buy it here, and they
have a card that they can use every time they go in. So every time right now, whenever we go to buy something for farm, for farm use in Arkansas. I have to fill out a form or sign something that says that this is tax-free, so it's a burden on the business and a burden on the farmer, and I would think it would be a burden on DFA cause then they have to go through all of those to make sure that what we purchased was actually part of the tax-free for farmers. Uh, so this card will just make it more
streamlined, make it easier for everybody, um, and then there'll be no questions asked about what can be uh tax-free and. cannot
Speaker 80
25:27
be tax-free. You want to say something. So, so I would, I'd come in Representative Vault and Senator Des on, on doing this. We've heard I've, I've been at Farm Bureau for 9 years, and we have heard countless times over the past 9 years, it comes up every single year that in particularly
border counties like Miller County, Little River, um, Pope County, all the border counties, they're going over to Oklahoma where they have a simple, it's just a simple card if anybody has a lifetime hunting license and it's The laminated sheet of paper. What it is, it basically it's self-identifying that they are a farmer due to their income or in Oklahoma, it's on their Schedule F, uh, form. They submit that in and they get this card back and basically they can go to the tractor supply and the tractor
supply says, OK, you, you are tax exempt on X, Y, and Z items. So, um, that's it's it's a major issue like if you live in those border counties that they go over to Texas because it's not a burden, because if they're A farmer and their qualified tax exempt. Basically what they have to do if if tractor supply does not apply the tax exemption status to the item, they have to wait until the end of the year and file a return on getting
that money back for the tax exemption status and so it's um it's a big growing problem, um, and like I said, we've heard this for numerous years, uh, especially in border counties, and it's not just on Western, the western side of the state. Mississippi County a couple of years ago, uh, farmers are running up to Missouri to get their uh bail wrap for their cotton pickers because they had tax exempt status and they were coming back into Arkansas and picking cotton on that.
And so, um, I would, you know, we're, we're strongly supportive of, of a tax identification card just so there's no ambiguity in you don't have to carry around a letter size sheet of paper and certify that you are a farmer, sign off on the bottom and then 5 years later, um, they come back and and hit you with hit you with taxes, so, um, there we are, like I said, we're, we're in
Representative DeAnn Vaught
Unverified
27:46
support of this. If you look on page 3, it
actually defines uh farming and what it means, um. So our tax, um. Taxes for farmers that would be free or On agriculture production of food or fiber as a business or the agriculture production. So that is clearly defined in here as to what we're trying to get an
ID card for. Thank you. Members, and I have a question, as someone who has a breeding operation in Oklahoma. We have
one of those cards and we take it around and when we filled out for our exemption, we filled out the form and they sent it to us. Um, it makes, um, Getting your tax exempt. Much easier, um, in the state of Oklahoma than what we currently have to do in Arkansas, um. We're not getting any tax exemption that we weren't do.
It just makes it simpler to be able to get that. It makes it simpler for the vendors, it makes it simpler for the farmer. So it's really not given a new exemption
to anyone. It's just a way that they're the businesses they know that they're due to have a tax exemption. So when you present this card and you go to where there's tractor supply or it's Pearson lumber or wherever it might be, if you got that card and their system, they automatically know what you get charged taxes and what you don't charge taxes. The co op knows if we're buying. fade for the horses or whatever were tax exempt, but we're buying food for the cats. It's not tax exempt and so it doesn't give us an exemption across the board and I'm assuming that this
would work very similar to that. That's my question. Is that that's what you're seeing this working as? Yes ma'am. OK, um, with that representative
Representative Les D. Eaves
Unverified
29:32
Eames, do you have a question? You're recognized. OK, thank you. I Supportive of it. I'm
just trying to understand. Does the card work exactly the same way as the current sales tax exemption
Representative DeAnn Vaught
Unverified
29:42
form. Yes, that's, I think that's what the
chair was asking. So yes, it would work in that same way. You would just hand a card to them versus having to sign something every single time.
Representative Les D. Eaves
Unverified
29:55
So how, how does the vendor? Does the vendor take your word for it that you're exempt from the things
you're purchasing, whether you use the old form or the new card. I mean, um, the card doesn't
Speaker 80
30:11
have anything to do with Who decides on what's exempt. So, so DFNA essentially there's a, there's a letter page that says if I, if I sign off on it that says I am Mark Lambert Farms. I'm in the production of rice, cotton, soybeans, and then
I sign off on the bottom of it. Basically, you have to go file that with with a um and it's a self certification you have to go file it with the store and they take your word for it. The only way that they can come back is if they audit that story. and they pull your sheet and say, well, you're not exactly tax exempt because. Uh, we went back on your, on your income tax records or your profit loss statement and said, hey, you're not tax exempt, and then they can hit you with it.
So it's a self-certification um of, of that tax exempt status, um, I guess previously in my former job, I was at John I was John Deere salesman and it's basically it's you fill out three lines and it's and they file it there at the store, um, so it's a self-certification. The only thing else in this card, the way it works in Oklahoma, it's a little bit different in Oklahoma, you file a Schedule F, it goes to like a county tax collector. and they verify it kind of like
a concealed carry handgun license with the sheriff, they file it and then it comes back to the department and then they
Representative Les D. Eaves
Unverified
31:33
issue that tax exempt card, but the card works the same way as the current sales tax
exempt form that you would take to a vendor to say I'm buying these things. You're still self-certifying, and you're still subject to audit by I guess DFNA sales tax. I think if
Representative DeAnn Vaught
Unverified
31:47
you go to page 3 maybe representative and look at line 17. I think that may help you. A little bit, maybe.
Representative Les D. Eaves
Unverified
31:58
I'm just trying to figure out what we're doing. We're really just saying instead of carrying a
Speaker 80
32:04
big sheet of paper, you're going to carry a car. That's the only difference. Is that and, and I think it goes on income as well. You have to have a certain number of income to say, hey, you're
Representative Les D. Eaves
Unverified
32:13
not a hobby farmer, you're actually a farmer farmer, and so that's what I'm trying to make sure is that we don't get these farmers in a situation where
and I have some personal experience with this with someone I know that the secretary was handing out the sales tax exemption form to every vendor they had and everything they were buying. she thought was exempt, got
audited by the FNA, uh, which was brutal, ended up owing a lot of money for things they really should have been paying sales tax on that they weren't, but this card
Representative DeAnn Vaught
Unverified
32:40
really hasn't, doesn't change that at all. You're
still in the same situation. So if you on line 17 it says the secretary shall provide an eligible farmer with a farm sales tax ID card to assist retailers and properly accounting
for non-taxable sales of tangible personable property or taxable services to a person. engaged in farming.
Representative Les D. Eaves
Unverified
33:03
But it's still up to the farmer in this case to, I guess, let the vendor
Speaker 105
33:06
know what they should and should not be paying sales tax on. Whether
Representative DeAnn Vaught
Unverified
33:19
they use the card or the form, right? profit loss. So the way I read this, the Secretary of DFNA is the one who will be their department will
be the ones who decide if this person is actually a farmer who gets the
Representative Les D. Eaves
Unverified
33:33
tax ID card or not. OK, I understand that part, but I'm, I'm. But it's still up to the farmer whether they use a
cart or the form to decide to let the vendor know what purchases they're making that either are exempt from sales
tax or not exempt, right? That stays the same as it is now. Representative Abes, I understand the way that it works for us in Oklahoma
is we filled out the form. It got verified what products would be tax exempt, and I'm, this is me just thinking we take that card
anywhere and we can present it to any vendor and based on that information on that card, it's like they scan it. And then it's, there must be a database inside Oklahoma's DFNA system somewhere that says hey this person's exempt for this because I'm telling you the co op understands when we present the card that um horse feed is tax exempt, but again, when we go by cat food, it's not tax exempt. They charge us taxes on it. So there's something inside their database when it's filled
out and verified at the county level and sent back to the
Representative Les D. Eaves
Unverified
34:38
state level. It lets them know. I'm, I support. I'm just trying
to make sure we're not getting anybody in trouble here at the end of the year and might be able to give us more because they're they talk about the implementation cost of it, and I'm
Representative Les D. Eaves
Unverified
34:51
sure that's probably around programming how that would be
done, I don't think Paul going to get off the hook on this
Representative Jim Wooten
Unverified
34:59
one. No. Representative Wooton, you're recognized. Thank you, Madam Chairman. Uh,
would you agree that this is simply simplifies it for the former when they go into the co op or uh grocery store or whatever, they can show this card
Representative DeAnn Vaught
Unverified
35:15
and it clarifies it. It will simplify it on both sides, the
Representative Jim Wooten
Unverified
35:19
business side and for the farmer himself. Yes, sir. Would you also agree that the farmer is the only person that pays at retail and sells
Representative Roger D. Lynch
Unverified
35:28
at wholesale. 100%. agree with that as a farmer.
Representative right you're recognized. All right. Representative Lynch, you're recognized.
Representative Roger D. Lynch
Unverified
35:41
I think there's probably one source of income that you, uh, you missed on this increased sales on the border counties would result in a higher income tax requirement off those businesses, right? So actually you have a revenue increase. Yes sir. This is meant to
help both the businesses and the farmer themselves. Any other questions, members?
Chair
Unverified
36:08
Representative Berkshire recognized him. Thank you. Um, so will DFNA come to the table because I, I am curious to know about the 340,000 in project costs in the four new employees that they have to hire if we're not changing what they're doing in terms of uh processing sales tax exemptions. It's the same sales tax exemption that farmers get already, right? So how, why the four new employees? That would be my question. We can bring
them down and they can begin answering the questions everyone has lined up for them, I'm sure.
Speaker 134
36:40
And Paul, if you'll introduce yourself for the record and you'll be recognized. Morning, Madam Chair, members of the committee,
Representative Ron McNair
Unverified
36:55
uh, if it's OK with the committee, I can just generally speak about the current processes regarding the exemption and how it's claimed by farmers currently, um, so what we have is Part of our sales tax rules is that we have promulgated a
Commercial farming exemption form. So when a farmer goes into a business to buy a piece of machinery or equipment, um, I'm sorry, Paul Geering with DFA, um, when they come in to buy a piece of machinery and equipment, that person will fill out a form. It's about um 1/3 of a page long, um, that certifies that that individual is engaged in the commercial production of food or fight or ur as a business, um, and that the
machinery or equipment that is going to be purchased by the farmer will be used exclusively and directly in um growing food essentially or food stuffs that are going to be served, um, uh, you know. given to in process form to to livestock, uh, when there is a um An ATV that is purchased by a Retailer to a farmer, um there is an additional requirement that that same exemption certificate be transmitted to
DFA, um, and so that, um, we get those directly from the retailer on a monthly basis for those all train vehicle transactions. That was a recent change that the General Assembly enacted in, I believe the 2019 session in response to um the. perception that there were all terrain vehicles that were being purchased that um possibly there were abuses of the exemption form that individuals were coming into retailers buying ATVs, filling out a form saying that they were engaged in
farming, but that person did not. Have a wasn't following a schedule left with the Internal Revenue Service or or with the state. Um, so, um, for the ATV purchases, those are sent directly to DFA pursuant to Arkansas statute for the other purchases for exempt machinery and equipment. The retailer will retain a copy of that commercial farming exemption form, uh, and DFA periodically in an audit will review those exemption claim forms, um, with, with the
retailer. Now if there was a circumstance. where a retailer sold a piece of machinery or equipment to an individual and the exemption form just wasn't in the retailers' records. There's a safe harbor provision in our law that the retailer can then reach out to their customers and say, hey, we sold you this item, uh, we need you to uh provide you with the exemption form just so that the the retailer if there was um Some, some records that were
misplaced or possibly filed in a in a wrong customer file, that retailer can go back and make sure that that they can demonstrate that exemption in an audit in case the records were were not found. Uh, so, um, that is, uh, um, if there is a circumstance where a farmer, um, claims the exemption, um, there is an audit, uh, and usually what DFA's process looks like it's just to, to verify. that that piece of machinery and equipment is used exclusively
and directly in farming and also that that there is actually a commercial enterprise so that generally speaking, a farmer will file a Schedule F with the IRS or and also attach that with their state return. Um, now, Some farmers will have years that they are experiencing a loss, some farmers will have a year with their experiencing a um a net income from farming, but also in the earlier presentation there were discussions about
hobby farms, um, so there are some internal revenue Service guidance on what factors to look at for purposes of determining if a if a taxpayer that's claiming um that they are engaged in in commercial farming, um, there, there are specific things that we look at at DFA to verify and you know, history of profit and losses, um, is there, you know, a business plan, uh, so, and there's a lot of case law that arise. around this issue as well for
our auditors to to look at. So that's, that's generally how the process works. If, if DFA reviews the information and agrees with the farmer, there's going to be no assessment. If there's a, if there's an issue with the assessment, um, uh, with, with the purchase and DFA does issue an assessment that taxpayer then is entitled to due process by going to the Tax Appeals commission filing a petition and they can receive an administrative hearing before. um The commission and then the
commission's decision is also subject to appeal to circuit court or the Supreme Court. So I'm happy to answer any questions about the current process or um our
Representative Jim Wooten
Unverified
42:09
comments on the bill as well. Representative Luton you're recognized. I have a motion.
Thank you. I have a motion that's appropriate time. OK, we're not quite there yet. Representative right you're recognized
Representative Ry
Unverified
42:20
for question. Thank you. Thank you, Madam Chairman.
One more time we have a sheet that's
Representative Johnny Rye
Unverified
42:27
about 1/3 of a page long, Paul. And then we have a card. That she that's to be filled out. Will that be
Speaker 142
42:35
for every business that you buy something at, or will that be a
Representative Ron McNair
Unverified
42:39
one-time thing. So, so generally the, the, the The the brief questionnaire, which is I fill in my name, I affirm that the information contained on this exemption claim form is is accurate, um, and then the person signs and dates the form and and gives it back to the retailer. That's
generally based upon each each transaction that occurs, um, but of course, uh, if there is, uh, the, the farmer has. The card from DFA certainly would operate in the same circumstance. We certainly can see that there are going to be farmers that are going to be going to their same retailer, um, on a continuous basis to buy items that are that qualify as exempt under Arkansas law that they can maintain a copy of their card within that business's records and um and
then as a part of the bill of sale, they can identify the items that were sold that were that fall under an existing exemption, and they can pay tax on any. thing that was not subject to an exemption because the agricultural exemption, it applies to specific items. There's not a, there's not a general exemption for for farming there, you have to buy exempt items of machinery equipment, you know, fertilizer, seeds, things, things of that nature. OK,
Representative Johnny Rye
Unverified
43:52
but, but Paul, let me ask you this. Let's just say that you have one dealership of farm,
you know, um, John Deere or whatever, and that's for equipment. Then you have another one for say feed and things like that. Once you feel that sheet out, do you have
Speaker 143
44:10
to fill that out for both places? Well, that, so if you, if you're going to buy machinery and equipment, we have the form for machinery
Representative Ron McNair
Unverified
44:18
and equipment, um, but if you had Um A a different type of item was being purchased they, as long as they have a record that um that can be reviewed upon audit that
demonstrates that the person made an exempt purchase, that's, that's really what we're looking for, but of course if you have a card that is a result of this legislation, um, you would be able to provide that card and the retailer would be able to keep a record of that, that, that customer um has a
Representative DeAnn Vaught
Unverified
44:47
card on file with the business. Can I, can I also say something representative. uh Representative, that's why I'm trying to do this. It just makes it so much more simple. We don't have to fill that out every time
they'll have a card on record or we can present the card every time and it's just a more streamlined and there's not pieces of paper
Representative Johnny Rye
Unverified
45:07
that you have to fill out every single time you go to purchase something. So, so in other words,
once you fill that sheet out, you don't
Representative Les D. Eaves
Unverified
45:19
have to do that again. That's good. Representative A, if you're recognized. Thank you.
All this probably is directed at you. The card is not going to be, or is it scanned and verifying each transaction should be tax exempt.
Representative Ron McNair
Unverified
45:33
Or is that how it works? Well, so certainly there's going to be circumstances where a, uh, I would anticipate that a farmer that goes to their retailer is going to be making purchases and some of those purchases fall under the exemption, and some do not, uh, so, uh, because, uh, for example, if you buy a piece of, uh, let's say you buy a tractor, um, that's, that's machinery and equipment that can be used exclusively and directly in farming, um, but
Speaker 143
45:59
if you're buying a repair. replacement part for that
Representative Les D. Eaves
Unverified
46:04
tractor, you're you're paying sales tax on on
Speaker 143
46:08
the repair replacement part. How does the vendor know which one is taxable and which one
Representative Ron McNair
Unverified
46:14
is not based on this card. So, uh, that, and that's the under the current process, the vendor also has that. Um, responsibility to make sure that um if a person is going to be buying something, um, what's covered is is items that are specifically defined as machinery and equipment under the exemption, um, what we don't
have is an exemption for repair and replacement parts. We do have a promulgated rule, it's GR 51 under our sales tax rules that gives um examples of what can be purchased under the exemption and what things do not qualify. Good example is that we have in there are lawn tractors, um, so yes, agricultural tractors clearly contemplated by the exemption, but if you're going to buy, you know, a, you know, push mower, um, that,
Representative Les D. Eaves
Unverified
47:00
that, that's what I'm asking is who's responsible for deciding
Representative Ron McNair
Unverified
47:05
what is exempt, the vendor or the farmer. So um it's how it functions is, is generally the vendor I think has an obligation to Comply with the requirements of the law and not make representations to the to the their customer about what can and cannot be purchased exempt, um, and, um, so anything that is a repair or replacement part. I think that generally we don't have a problem with that, those being sold as is being exempt,
um, so, um, this, this really just kind of replaces in the law or just provides a different avenue in the law of how a farmer will make the claim of the exemption, um, existing right now is there there's a a a a duty on the vendor to make sure that they're not giving improper advice to a farmer about what can be purchased and what can't be purchased, and if there is a circumstance where a claim of exemption was was granted. Um, under claiming by use of the form that the, the reliability
of the for the tax then lies upon the
Representative Les D. Eaves
Unverified
48:09
the farmer that made the purchase of the item. OK, so to Representative Vauts Point, this card is just replacing the paper. Exemption form that you'd
Speaker 150
48:17
have to carry around and to give it to all your
Representative Ron McNair
Unverified
48:20
vendors. It's also it can replace it and also if anyone just if they don't want to go through the process of of applying for the card, they
Speaker 143
48:27
could still use the form um that would still be an appropriate replacing the form. Why do we need
Representative Ron McNair
Unverified
48:33
to hire 4 new people at DNA. OK, that's, so the, the
issue is, is that um we would have to make sure that we have a process where, um, and of course Arkansas is a large agricultural state. We we'd have to anticipate there would be a lot of farmers that would like to apply for this um for the for this card, we would have to make sure that we are not issuing cards to people that don't qualify as farmers, um, and that's that for the paper form though so and how we do that, so we we we if somebody applied for a card, um, we would want to do
our due diligence on the front end to make sure that that that person is not just. Of trying to obtain that card without actually having a filed Schedule F um with the state of Arkansas, uh, because if, if someone would like to obtain the card and go to a retailer and buy, um, you know, a side by side and expensive all-terrain vehicle. We want to make sure that there's a level of due diligence that's going on within DFA to make sure that we're just not issuing these cards to anybody that applies for them.
Representative Les D. Eaves
Unverified
49:42
But they could today, I guess it sounds like we're not doing our due diligence when we issue
Representative Ron McNair
Unverified
49:48
the sales tax exemption form to someone who's claiming to be a farmer. We do not issue the form. The form is just a promulgated form that the cus customer presents at the time of sale at, at
the business. OK, thanks, Paul. Yes, sir. Also, I, I guess the difference with this
is you would then be doing the due diligence on the car to make sure that they are a farmer and meets the guidelines.
Currently we're self-regulating and what anybody could report that they were a farmer and present this certificate, so it's a little more. Looking over to make sure it's not a hobby farm, but it's actually somebody that is actually truly a farmer in the
Representative Ron McNair
Unverified
50:28
state that's getting these exemptions, is that correct? Absolutely, I will add to that is that there's also a level of We want to make sure that the person that's applying for the farmers' exemption card really understands that the the things
that can be purchased and and who qualifies uh for the exemption, so we wouldn't want to create a situation where someone Let's say that they have. They, they've got a, um, you know, a vegetable stand and, and, and it's they're, they're growing some vegetables in their backyard, but it's really, it's really not a real business. They, they don't have a need for um they really don't have a need for a four-wheeler or a side by
side because it would not be used in that, in that. Growing of those vegetables, we don't want to create a false sense of understanding about what the benefits of the card will be if that makes sense. We want to make sure when they apply for it they understand um that they have to have an existing exemption within the law that they are engaged in commercial farming as a business and that they're not a, they're not a hobby farmer or that they're just not a person that's applying for the card that has, that has no claim to be a farmer
at all in the first place. But right now they're able to fill out a certificate. It, it does that already. You're absolutely right. That certainly someone can walk into a retailer. They can present that certificate to the retailer and fill it out and then buy that item of machinery and equipment under the exemption and then it just becomes an audit issue for DFA to review that exemption form at a later date. Now unless it's a an ATV, those ATV forms, they come directly to DFA by the retailer. Secretary Hudson, do you have
Speaker 157
52:09
something you'd like to add? Just real quickly, first of all, I agree with everything that
Paul said, of course, that's the smart way to
Speaker 158
52:16
start, but the, the second thing I just really the point I wanna make is we're gonna do this as efficiently as we can. My concern is if we're not adequately staffing it, we're going to have all these farmers in Arkansas sending us their requests for a card all about the same time. This goes into effect. And we'll have some frustrated people if we don't have enough staff. We probably get more efficient in doing it over time, but I think initially that's probably the right number of positions that we need to have in order to process the
applications, go and review tax records, making sure indeed these, these folks are farmers because we have a recurring problem with people who are hobby farmers uh who are not actually engaged in the
business of farming, so make sure adequately staffed to actually do all that work. Thank you,
Representative Robin Lundstrum
Unverified
53:05
uh, Representative Lundstrom, you're recognized. I wanna make sure, so we are. Trading paper for a card. And what's gonna cost us 340,000 plus 20,000 for maintenance and
then another 52,000 for support and 143,000 for support. 3, thank you and. We're getting card for paper. What are, what value? I know we're getting value for the farmer, but what are we as the Um People over the checkbook. How, how is this gonna improve the system if it's all just paper versus card. I'm, I'm not understanding is this really gonna make it easier on the farmer in the long run, um,
Speaker 164
53:48
I think that's the question for for this body
Speaker 158
53:51
to decide. We're providing a service. DFA is providing a service to the farmers by producing this card. We're not trading anything. We're gonna, as Paul indicated, we're preserving both options. If you don't want a card and you still want to use the paper form, you'll get a chance to do that. But if we're going to provide this service to the farmers so they don't have to worry about filling
Speaker 157
54:10
out the form every single time they go to a retailer, there's a
Representative DeAnn Vaught
Unverified
54:14
cost to doing that. And it's not one piece of paper,
it's papers. Every single time you go, you have to sign every single time that you go in. So it is right now we're, it's a cost for the business and a cost for the farmer. OK, so I'm trying to make it where it's streamlined and it's a much more efficient, easy way to take this care of this. It's like Representative Es Eaves was asking a second ago. Um How do we protect people from using it when they shouldn't be using it. Well, if it's going through them, it should protect
any farmer from being tagged later for for taxes that maybe they should have paid that they didn't pay. It should protect hobby farmers from being able
to get this and use it. OK, I'll get out of the queue,
Chair
Unverified
55:08
thank you. Representative Berkshire recognized. Thank you. Um, I am 100% supportive of making it simpler for farmers. There's no doubt about that. I guess there is, is there a swiping of this card that it then pulls from a
database. Is that the way that's what the 340,000 is for. That's what we envision. OK, got it. And then, um, Do you anticipate more use of the sales tax exemption once the card is in effect versus the paper system
Representative DeAnn Vaught
Unverified
55:35
we use now. I look for more farmers to buy equipment in Arkansas than what they've bought in the past because it will be an
Speaker 169
55:43
easy streamlined. Situation, which right now it's not. Excellent. And do we have an estimate of the fiscal impact of the increased use of the
Representative Ron McNair
Unverified
55:53
exemption then, and then I don't know that we have that. Representative Burke, so I can speak to that. So we certainly have a uh robust and large use of the current process. this this exemption has been a part of the Arkansas code for several decades, um, so it's already regularly being deployed. I certainly can understand that there might be um farmers that are, you know, growing across the border because they're their retailer is. Um, it's, it's closer to the
farm because it's um it's might be situated in the state of Oklahoma, um, but also the, the administrative compliance, uh, certainly we understand, but we're not able to account for what those cross-border sales might, might be. So when we scored the bill, we said currently there is an exemption. This is a different way to claim the benefit of the exemption, we would not be able to predict if there's going to be an increase or decrease in any type of uh of revenues um to the state, but certainly it creates a different process. The revenue impact, um,
Purely as on resources that would be required by DFA to create this new process to issue the cards to the farmers and review them to
Speaker 143
57:04
make sure that um those individuals that
are applying for it actually qualify. So, I have a real quick question. So with this card, we're actually going to be able to verify upfront before they buy that they
qualify for the exemption versus what we have been doing is filling out a
card, you do an audit of a business
and you find out they should have collected it then. So we should know up front
Representative Ron McNair
Unverified
57:35
because you're doing your due diligence first that this person qualifies. I agree, and there's also the element of that um. You know, with There's a level of confusion that can exist with individuals that might perceive themselves to be a farmer or a rancher, um, but perhaps they, they are a farmer rancher, but it's not a commercial business. They, they
don't have actual sales of their products, um, they might, you know, raise cattle, they, um, you know, they might grow crops, but they, those might be completely consumed by the farming operation for themselves. They might be given to their neighbors, but they don't actually engage. the business of farming. This could possibly aid in that understanding of when people apply for it, they could see, well, I, maybe I don't actually qualify for this and then when I see what the requirements of the law is to to provide for this card that they won't apply.
There's also the element of is that um they're, you know, we can, we can verify the information that's submitted by the person in our existing tax records to see if they have filed a schedule left with us, and if they have not, then we can
reach out. and possibly figure out why. OK,
Representative Jim Wooten
Unverified
58:48
thank you. Representative and you're recognized. Thank you, Madam Chairman. Let me, let me be sure I understand what, what y'all are saying. You're saying that right now, all y'all do is print a form,
send it out to the merchant, and Somebody comes in and says they're exempt and they sign
Speaker 173
59:07
off and They get exemption. Is that what you're
Representative Ron McNair
Unverified
59:11
saying is that we have a promulgated exemption form that the
Representative Jim Wooten
Unverified
59:14
persons out do you have any idea how much that's costing us a year in sales tax, so
Representative Ron McNair
Unverified
59:21
we do have a part of our Uh, biannual report um that provides a cost for the farm exemption, but I don't
Representative Jim Wooten
Unverified
59:28
have that I'm not talking about the
foreign exemption. Do you have an estimate? Or a cost that it's costing for people that come in and
say they're farming when they really don't, and they get an
Representative Ron McNair
Unverified
59:44
exemption. I don't have that information. Usually Representative Wootten, how that issue comes up, not entirely, but it's usually in the situation of the ATV or the side by side or the mule that's purchased, um, and that's, and that's when we received that and received the exemption form from
the retailer. We do our due diligence on checking the form and see. This person that claimed the exemption, they, they might file an income tax return with us, but there's no Schedule F or
Representative Jim Wooten
Unverified
1:00:14
that they haven't filed an income tax return with us because they're they're out of state, so we're depending on the vendor. To police enforce the exemption. The so the vendor what I when I buy a tractor, they ask me. You know,
Do you give the sales tax exemption. I don't take one because I'm not a regular what you'd call a regular farmer, but if I said yes, what point would it be
Speaker 173
1:00:44
caught that maybe I wasn't entitled to that. So there can be
Representative Ron McNair
Unverified
1:00:48
circumstances where, um, if you walked in and made the claim of an exemption for the purchase of the tractor under current law, you would sign the exemption form, the retailer, um, would sell you the tractor without
collecting sales tax if that retailer was audited by DFA for sales and use tax audit, they would review the exemption claim and just verify the information, um. Within the exemption claim, um, now there are some circumstances that we have seen where this is an issue regarding the ATVs where possibly the The salesperson that was maybe on the staff of the business and the customer might have been, you know,
Buddy buddies is a good is a good term. So saying I can, I'm gonna save you $2000 on this if you just fill out the form, sir, uh, and, uh, so that's, I believe that's why the General Assembly put in that requirement that those forms come directly to us
Speaker 173
1:01:50
to review because those um all terrain vehicles were the source of the large amount
Representative Jim Wooten
Unverified
1:01:58
of the abuse of the process. So, so it really right now we're
depending upon the um the, the, the merchant to police and enforce
can you answer that question, yes or no? I would say no,
Representative Ron McNair
Unverified
1:02:12
there's a level of due diligence on on behalf of of the retailer to just to know that, for example, the repair and replacement parts, those are, those are not exempt, but you, when you purchase the machinery or the equipment, those can be purchased exempt. The the the fa cing of the form comes from our audit staff within DFA to review the claims of exemption
Representative Jim Wooten
Unverified
1:02:37
and verify that the claims are correct the word if. How, how do you, how do you know that they're, they're all audited. They are
not all audits not all of the forms that come in so it wouldn't take very much. Sales of very many tractors to
run up to $340,000 of lost revenue to
Representative Ron McNair
Unverified
1:02:59
the state. There's certainly the possibility that if we had less um improper claims of exemption that tax would be appropriately
Chair
Unverified
1:03:08
collected at the time of sale. Yes, sir. I agree. Thank you, Madam Chair. Representative Carr, you're recognized. Thank you, Madam Chair. I just have a quick uh informational question. Uh, do you guys know how
Representative John P. Carr
Unverified
1:03:22
many farmers there are in Arkansas, by any chance? A little bit over 37,000. I think it's 37,400.
Representative Ry
Unverified
1:03:32
OK, thank you very much. Representative Ry you recognize. Thank you, Madam Chairman. What I wonder on the definition of farmers, you got so different.
Representative Johnny Rye
Unverified
1:03:41
So many different kinds. I'll give you an example
Representative Ry
Unverified
1:03:45
on Crawley's Ridge. You may have a 20 acre uh plot of land for peaches may have um. Sweet potatoes. OK? But then you got another uh farmer
Representative Johnny Rye
Unverified
1:03:57
that may be farming 30,000 acres of land like in Poinsett County and you know, with situation like that, you, you not only do you run into
wondering who would be responsible, I guess you would, but you know, you, you got someone here that's actually renting land and someone that's owning land, would, would the form that they fill out, Paul would that, would that break that out to where you know where you're at. So
Speaker 134
1:04:26
I make sure I understand Representative, you're asking if a, if a if a farmer um actually has to be the
Representative Ron McNair
Unverified
1:04:32
owner of the land on which they're farming, is that or whether they're leasing the land from a from
Representative Johnny Rye
Unverified
1:04:38
a third party? Well, I, I think that in
the case that they were farming, Paul, it
Representative Ron McNair
Unverified
1:04:45
wouldn't matter as long as you knew who was the real farmer. I agree and and certainly the um um The circumstance of whether or not the person that's claiming the exemption is, is the owner of the land or is leasing the land. I believe there is no distinction that if you are, you're still entitled to the benefit of the farming machinery equipment exemption if you are
Representative Johnny Rye
Unverified
1:05:08
engaged in commercial farming as a business. So even though you got those
scenarios of small acreage and big acreage, you could make that. You could make that work within the questionnaire
Representative Ron McNair
Unverified
1:05:23
that they're filling out in the beginning. I agree, and generally what we, what we look for on these exemption claims is um verifying the identity of the person, matching the identity identity of the person claiming the exemption with their income tax record to see if a Schedule F was filed as a with their profit and loss from farming is our is
our initial place. Now there are circumstances where um we also are going to look to those, those internal revenue code factors that we we have adopted. to determine if that person, that person might be filing a Schedule F, but there might be 20 years of losses, um, because they're possibly, you know, it's not, it's not a for-profit enterprise. Now that's not to say there's plenty of farmers that do not have are posting a profit and clearly are engaged in commercial farming, it's just
for, for whatever reasons, the, the, the, the market for their, for their products, um, you know, the, they're, they're expenses certainly we. We certainly understand that, and that's where we're looking purely at just the profit or loss of the business is not the only inquiry that we would look at. We would look at those, those internal revenue code factors that that state whether or
Speaker 150
1:06:37
not a person is um engaged in that in that business for profit or if
Representative Ry
Unverified
1:06:42
they are regarded as a hobby farm. But we, Paul.
It's just like they were saying on a committee earlier, we sure don't want to make anything harder. Because there's already under You know trying to probably fill this out. The first time, but it's just gonna be a one-time deal, isn't this right?
Speaker 182
1:07:02
Yeah, that was one that was one of the um
Representative Ron McNair
Unverified
1:07:05
notes that we did in our fiscal impact is that um for questions that we could discuss with Representative Vaugh is that do we do we issue something that has an expiration date that needs to be renewed, um, um, so that that might be something
that we discuss offline um to to address the Getting an exemption claim that just is permanent to that to that person because at some point a person may no longer be engaged in farming, but would still have that card and maybe not understand that.
Speaker 142
1:07:32
That they could not continue to use it because they're not commercial farmer anymore. Thank you. Thank you, Madam
Representative Rick McClure
Unverified
1:07:41
Chair. Representative McCurry recognize. Let me see if I can summarize this
and make sure it's clear. So I'm an ag, I apply to you for
the card. You bet me whether I get the card, you send me the card, I go to the co op. I go in, I get a load of feed, place a big order for fertilizer, the 50 pounds for dog food and I'm having a bad day. I need a Coke and a Snickers. They scanned my card. I pay taxes on the dog food, the coke, and the Snickers, and I'm tax exempt and out the door. That sounds correct to me, sir. Thank you. If
there's anything that I'm answering Representatives you're recognized. OK,
Representative Les D. Eaves
Unverified
1:08:20
so help me understand this, is the idea to use the card to verify each transaction that a
farmer makes with a vendor. Yes So they're going to scan the card. And the
vendor's going to verify each transaction using a system at DFNA that does not yet exist, and that's why you need the four positions.
Speaker 150
1:08:42
No, so, so let me just what we would have to do is, is that um so one thing about
Representative Ron McNair
Unverified
1:08:51
Um, compliance with our sales and use tax laws is that we are trying to minimize the burden on Um, the, the retailer, that's, that's our primary concern. So we do not want that retailer to have to report to us. They, their transactions that are coming in where a person is presenting a card. The, the card in our, in our um What we would like to do is Have an application process for the card pursuant to the requirements under the bill,
issued the card to the person, but not have to have any type of electronic interchange between the vendor and DFA. I mean that that seems to be very onerous upon, um, both the vendor and for us to have to adopt some type of technology that uh I'm not aware of currently exists, uh, so, but certainly the, the card would be something that the farmer could Provide to the retailer, the retailer could keep on on file uh in Representative McCarro's
example, I sold the snacks. I collect the tax on the snacks, the exempt items were sold. We'll have you would have a a bill of sale in your in your point of sale system that demonstrated what was what was sold, what was taxable. Essentially not making this process
Representative Les D. Eaves
Unverified
1:10:09
more cumbersome, um, upon anyone would be our goal. So Yes or no, or is the vendor going
Representative Ron McNair
Unverified
1:10:15
to have to scan the card into any system at all. That would not be our implementation of this bill. No, sir. That's
not what we unders understand. We don't see that as a requirement of this bill to have any type of scanning process usually um Representative Eaves, when there is a this is akin to an exemption certificate um that would be issued to a business, let's say for example, a business that is a um A reseller of tangible personal property, um, they can obtain an exemption certificate under the same statute, um, that's, that's not a document that is scannable that then is transmitted back and forth to DFA to verify
Speaker 139
1:10:54
whether or not that's a valid exemption certificate.
Representative Les D. Eaves
Unverified
1:10:57
OK, so I'm we're just exchanging a Hard Or from a piece of paper to a card, that's it. And
Speaker 143
1:11:04
also adding the front end requirement that we review the applications. That's the important point how many
Representative Les D. Eaves
Unverified
1:11:10
farmers we have here. I can see why you would need 4 people to do the, the checks, the, the, the,
the pre-qualification, so to speak, of all the farmers and give them their cards, but when you get done with that,
I would imagine that there's not a whole lot of new farmers coming in. to the state. Do you
Representative Ron McNair
Unverified
1:11:32
still need those 4 people once the initial process is over. We, we would certainly be happy to come back and um to represent a vote in this committee and provide the information about the number of these applications that we had processed, um, here after the the law has gone into effect and to let you know exactly how many that we had to, we processed um how many individuals that we had working on, um, issuing the
cards and then what are ongoing needs would be at that point. Certainly there are going to be new people that are going to be applying for the card and as long as this law would be and in fact, but certainly those people that have applied have been issued the card and don't need to come back and get a new, a new card in the future, um. We would
Speaker 150
1:12:16
not need to be reviewing those on an ongoing basis as much as we would
Speaker 158
1:12:21
be reviewing them at the time of application. I would expect that the maintenance would require less staffing in the initial
Representative Les D. Eaves
Unverified
1:12:30
implementation, but going from paper to the card, which also includes the pre-qualification part of it. I mean, that's gonna be 20 grand a year ongoing for the software, I
guess, and then a $340,000. project costs for modifying your current software correct one time, yes, yes, plus 4 full-time. One supervisor and 4 full-time analysts. That, that's correct, sir. To go from paper to a
Representative Ron McNair
Unverified
1:12:55
card. Well, and also, sir, we're going to continue receiving the paper,
um, from that that is a current requirement in the law to receive those directly from the retailers. There's also uh for those, those farmers that are making the claim of exemption that have not applied for the card, that will continue to use the paper process, we will still be reviewing those. This will just be a new process that would require The applications. Now will all 37,000 farmers apply for the card. We don't know, but we certainly want to be prepared for every single one of them that could apply. Is there
Speaker 193
1:13:28
a charge to the farmer for the card? No, sir, not under this
Representative DeAnn Vaught
Unverified
1:13:32
law. I will say whenever I go to tractor supply right now, back to Representative McClure and I get whatever I get that's for the farm and whatever I get that's not taxed, they know in their system, it calculates automatically. What is taxed up because they know whenever I come in, I've got my sheet that I've got a sign they know already what is tax deductible and what is not for a farmer. Representative Jane, you're recognized.
Representative Lane Jean
Unverified
1:14:07
Call for someone that's just gone through this two years ago I bought a new Kubota tractor from a farm and um You fill out the paperwork at the tractor, uh, company, and they have a blank sheet you fill it out and you send it in and then of course there's no tax. Well. I guess about 4 weeks ago. A nice lady from your office called, we'll send a letter first and said uh they needed to verify my information.
Well, I was in the General Assembly, so I didn't do anything to it and then I got another letter in the next week saying this is my 2nd notice. So I, I called her. I gave her my Uh, tax ID number for my corporation. And then she worked on it about it, looked it up for about a day, called me back and verified that this was a legitimate non-tax. That's how, that's how it works and, and y'all just kinda, I don't know what the percentage is y'all spot check
you don't check every, every one, so it that's how it works now what I see we're gonna get a, a card rather than have this blank form that we fill out when we buy the purchase. It's just a convenience for. For the farmer, it's just, I mean when you buy a tractor, any any equipment now it's like a bank loan. It's unbelievable about the things that make you sign for, but that's, that's the day and age rent, so is that pretty much what this this card does. I agree, thank you. It's very.
Chair
Unverified
1:15:42
Representative McNair, you recognize. Thank you, Mr. Madam Chair, uh, I hate to take up the time, but, um, so our farmers are treated differently to all of our other tax exempt businesses. I didn't know that for my lack of knowledge. I mean, you know, tax, tax exempt business, you, you fill out your form where you're tax exempt and you, you, your vendors, you give them a one time deal. But you know, we, when you go
in, you don't have to do this every time. I mean, why have we set
Representative Ron McNair
Unverified
1:16:18
that up that farmers are different than other tax exempt businesses. Well, there are, uh, so there are exempt individuals or businesses, and then there are exempt purchases and so, uh, farmers under our law have our al can qualify
Speaker 171
1:16:30
for exempt purchases, so they don't, they're not able to buy they have to fill the paper
Speaker 156
1:16:36
out every time. That's right, OK. Thank you. Let's be clear if I could very
Speaker 164
1:16:44
quickly, ma'am, um, that's in the code that is not in DFA regulations, we administer the code that you
Speaker 158
1:16:50
pass, and I would just say. This is probably a category you can put a pin in, and we ought to come back to and talk about it at some point in the future, in future sessions about simplification of our sales tax code and opportunities to do that and potentially to address this exemption category because it does, it does raise compliance, difficulty issues, I think for our farming community at times. Representative Ray, you're recognized.
Representative David Ray
Unverified
1:17:16
All right, thank you, Madam Chair. So, Paul, that the, the back end verification that y'all do as Representative Jane described at the spot check. So is the is the card basically gonna replace that? Because you're doing the verification on the front end, or are you going to
Representative Ron McNair
Unverified
1:17:34
continue to do the spot checking on the back end. We, we would certainly continue our audit function within DFA, you know, we certainly, um, uh, Arkansas being a agricultural
state. We certainly have a lot of farmers that are claiming the benefit of the existing exemptions under law that are perfectly accurate and is Representative Jean's example, um, DFA verified the claim of exemption. We saw no problem. We issued no assessment, but certainly we have to be prepared to also um find uh those times that there are claims of an exemption that the person was not qualified for doing for claiming the exemption at the time of.
Representative David Ray
Unverified
1:18:12
sale. OK, so one of the things that I'm trying to weigh it's
just the cost of administering these cards versus the, the size of the exemption overall. I mean, what is the What is the impact of the exemption overall? What's the dollar
Speaker 150
1:18:31
amount so I can kind of put this into context.
Representative Ron McNair
Unverified
1:18:35
I understand it's so we as a part of our Act 819 report that we issued in, I believe, early January, late December, we do, I believe we provide a revenue amount for the agricultural exemptions. I don't have that, but I'd be happy to send you a
copy of the Act 8 819 report that has the dollar cost and estimates
Representative David Ray
Unverified
1:18:55
for the exemptions that exist under Arkansas law. Yeah, if, if there's somebody in the audience that could. pull it up and share it with us before we vote. That, I mean, I think that's really important context, you know, if this is a You know, if this is a $300 million exemption and it's going to cost. You know, a couple $100,000 to administer this, then maybe that makes sense, but so um I guess my next question would be, you
know, are there other exemptions that we administer cards for like this. Is there any sort of analogy to a different exemption. I know you mentioned certificates. I'm just I'm just wondering, uh, so
Representative Ron McNair
Unverified
1:19:34
certainly, um, I'm not immediately thinking of anything that we've actually issued a card for, um, but certainly this statute that is amended provides for exemption certificates to be issued by DFA, but no, I'm not aware that we have any type of
Personal identification card, that's that's issued to a business that is produced in this manner, but one thing I did want to point out is that we have very strict requirements on An identification card, um, and since this would be this, this would not be photo identification that somebody would be able to obtain. It's just that we're careful not to be issuing government-issued identification that has what we would if a person really needed an identification card or they would either get one of those that requires a birth certificate, you know.
Proof of residency. Um, and those types of um Uh document requirements that you would get before you got a driver's license or identification card. This would be essentially a card that would be in the form of what currently is, is provided in the form of an
Speaker 157
1:20:44
exemption certificate. OK. And then uh Ray. Just
Speaker 158
1:20:49
kind of spot checking it here in the report and the print
is small and my eyes are bad, so it's, it's
Representative David Ray
Unverified
1:20:58
in excess of $300 million I think. OK, and then my last question is, is, um, for Representative Baugh, I'm certainly sympathetic to. Making farmers' lives easier. I just, I guess I'm wondering how burdensome is it really to fill out this form? Is it, is it just that you have to sign the form attesting to something, or do you have to go through and Fill out each item that
Representative DeAnn Vaught
Unverified
1:21:22
you're buying and uh tell me how the
farmer, the business also has to hang on to these papers. They can't like get rid of them. They also have to hold on to the papers for several years. It's not like something they can get rid of. So it's
Representative David Ray
Unverified
1:21:39
not just farmers, it is also the businesses that it's It's a big deal for her. I guess I'm wondering, I've never filled one of these forms out. I'm not a farmer, so do I just sign the form or
Speaker 80
1:21:52
fill out 17 different fields. What, what is involved? so in my
knowledge of it, um, it would say, alright, I'm uh I am Mark Lambert Farms LLC. My tax ID number is right is at the top and then it says I'm in the production of commercial farming and I produce cotton. soy beans, rice, corn, and I signed my name at the bottom and say I'm verifying that all the information above is correct and then they go and file it, uh, either the co op, whoever files that, um, we have one gentleman
in Sebastian County. He keeps a file folder on his dash with all these forms in it and every time he goes to a retailer, he pulls one out and takes it in, so I mean it's 34 lines that you have to. Fill out, it's not a long, but if you say, um, I raised cattle. I trim entros and I build fences, well, it could come back and say, well, you're doing landscaping and construction,
but that goes back into the whole question of, you know, what is tax exempt, um, and what is not, and so there's ambiguity in the law and there's not clarification and what I what I said to representative. If you go to the tractor supply in Ashdown and you buy something that's tax exempt, they're gonna charge you tax. If you go to the tractor supply in Texarkana and you buy something that's tax exempt, they're gonna take the tax exempt, they're gonna take the tax off of the tractor supply in
Texarkana, and I'm just using tractor supplies as just a. Um, and I, I guess an example, but that's just that's because it's up to each individual store to say, all right, do we charge the taxes or do we let them file it at the end of the year. And so what this would do is basically just clear all that up to where it gives the storefront cover and it gives the farmer or the person that has this tax tax card cover as well that makes
them to where they don't essentially have to get an accountant at the end of the year. year to get all the tax exempt items back on their taxes at the end of the year
Speaker 192
1:24:09
if that makes sense and I'm not a CPA by any
means. So, uh, There's that explanation. Representative McAlinden
Representative Mindy McAlindon
Unverified
1:24:23
to recognize. Thank you, Chairman. So just following up on that real quick. So if I use the card in my first
city that you talked about, does that Will they now give me tax exempt because I use that card. Is that what you're saying is the intent. That the intent or they will, they should they should they should because you've got a verification that you now, but isn't that what the form was too? Isn't that, I mean, because you're saying in the law, you're saying I can still use that certificate. So wouldn't they treat those the same? I think it
Speaker 204
1:25:03
I just think it's that stores, you know, tolerance for their risk profile, you know, I think it. Do you want to trust a self attestation. The same as you would trust something coming from the state of Arkansas says there's at least been some initial due diligence done. I think that's the difference
Representative Mindy McAlindon
Unverified
1:25:19
probably. OK, what is the penalty then if um if I use a certificate for fencing, but I, it's only good on cattle farming and what's that penalty look like? I mean, you'll have
Representative DeAnn Vaught
Unverified
1:25:28
to go back and pay the taxes. That's the penalty and.
Representative Mindy McAlindon
Unverified
1:25:35
And the interest on that. Yes. OK, and then one more question. What, um, If we have this card, are you reviewing every year? Do people have to reapply every year? Do they have to verify every year that they are still indeed farming and still qualify for tax exempt. If
Speaker 204
1:25:55
I move from the certificate to the card. I think this is gonna, we're going to figure out if, if you actually, you know, pass this in terms of, you know, putting the card out there. What's a reasonable
frequency, you know, for having someone re up on it. I don't know if it's a year or not. I think we just need probably have some flexibility on the cycle for
doing that. Shouldn't be evergreen, I think. not be evergreen. OK, thank you. Representative Lunstrom, you're
Representative Robin Lundstrum
Unverified
1:26:24
recognized. Thank you. I just wanna make sure I understand. So it's 556,000 to start and then every year after that it's another 216,000. To keep the program going, correct?
I, I agree with your math. For that type of money, shouldn't the card when you swipe it, pretty much clear all the purchases and you don't swipe it. It's just a, it's, it's not even a, it's just a
Representative DeAnn Vaught
Unverified
1:26:53
car. So we're not getting, we're not getting much for ma'am. They do have a swipe in Texas. That's why I thought we could do a swap in Arkansas because there is one out there, OK, but this doesn't do that. Well, we've not designed a card yet. OK
Representative Robin Lundstrum
Unverified
1:27:11
All right, I'll get back in
Speaker 202
1:27:13
the queue. I'm, I'm still trying to figure this out.
Speaker 158
1:27:17
Representativestrom, and I don't know what they're swapping in Texas, they may be just swapping it just to confirm the validity of the ID that it's properly issued. But in order for us to adjudicate an actual transaction, we'd have to have every single store skews loaded. In our system, SKUs are changing all the time. I can't imagine another state is actually adjudicating every single
purchase to determine what is taxable and what's not taxable. I just can't envision that's happening out there. We certainly would not be doing that. We would not sign
up for that. It just be impossible to administer,
Representative Richard McGrew
Unverified
1:27:57
let alone the cost would be prohibitive. OK, all right, thank you. Representative McGrew, you're recognized. Thank you, Chairman. This is Jean had. Or actually I bought, I bought a 4-wheeler last year and the dealership presented me with
this form. I have an 80 acre farm held under LLC. It's not a commercial farm. I lease it to someone to keep their cattle on, but I don't use it as a farm. They were going to allow me to fill out that form. It was left up to me whether I filled it out or not, and I didn't. I paid the tax on the vehicle, but if I had have done that and you did the check like you did and caught me. I know I'm going to be in trouble, but is the dealership going to be in trouble for allowing me to do that? Uh, no,
Speaker 150
1:28:42
sir, only in circumstances where we, there was actual fraud or you know that there was some type of agreement between the dealer and the person where they knowingly were presenting a false form because of course
Representative Ron McNair
Unverified
1:28:54
the the the form that's completed, it's under it's not, you're not having to raise your hand and have a notary present, but certainly we're anticipating that people are telling the truth on the form, and if the form is the only time that the retailer would be have any type of responsibility if there was
some type of collusion or fraud that's going on on the on the retailer. in your example, um Representative, if you had completed the form because you honestly believe that you qualified for the exemption, the retailer in that circumstance is relieved of the liability for the sales tax and then the responsibility, then passes over to you as the customer, um, when we would review the claim of exemption. Um, and to verify that you were qualified to buy that ATV under this exemption. If we verified
it and looked at your information and we determined, yes, this is a proper claim of exemption, we would notify you that no other inquiry is further on this transaction, we're done, but if, but if we after our discussions with you and review of your of your transaction, if we determined that you didn't qualify, there would be an assessment. There could be interest also um that would be assessed with the With the sales tax. Now, generally speaking, there's not going to be an assessment of penalty unless it was a routine
matter that this person was coming in buying ATVs repeatedly had been advised repeatedly that they didn't qualify. That's the only time that we're we're negligence would come into play on claiming the
Representative Richard McGrew
Unverified
1:30:26
exemption. OK. So, but there is no responsibility on the the vendor to explain what it is or anything. It seems like to me it opens it up for a lot of fraud, you know, hey, this was a this was a $20,000 side beside the tax was pretty substantial, and
all I got to do is fill out this form. So I guess another question would be how many of these do you spot check
Speaker 150
1:30:52
because it may be worth the gamble, you see what I'm saying? Yeah, and so representative, um, so I believe
Representative Ron McNair
Unverified
1:30:59
he's the the either 17 or the 19th session where this issue had been identified by the um the interim committee to study our tax laws, and the committee was concerned about the claims of the fraudulent exemptions on the ATVs, and that's why The General Assembly enacted a
law so that those forms come directly to us on a monthly basis to verify. So this is the only item that the General Assembly has really identified where we get the claim forms directly to us monthly from the vendor. Everything else is just a a verification and possible audit process that we engage with the, the when we contact the the the seller of the machinery or equipment. Um, after we contact the seller of the machinery equipment. They, the seller produces the exemption forms for all of their
transactions, then there might be a process that we verify those exemption forms with
Representative Johnny Rye
Unverified
1:32:01
the individual taxpayers. All right, thank you very much. Yes, sir. Thank you. Representative Rye, you're recognized. Mark, it, it appears. That this form is very important. OK, and if that's filled out properly, a person is either renting land or they actually the owners of the land. OK, and both cases, like in, in
Representative Richards, uh, uh situation that, that's gonna be um That should be in my opinion, a part of farming. If he use that in his farming up, you know, even if you rented the land out. But that form, if that is done right. This should end for the people that have actually properly filled that out and once that gets done, that card should be able to be scanned and and used without any problems whatsoever. I think.
Representative Jim Wooten
Unverified
1:32:51
Representative Wootton. Well The horse is dead
We, we were about Secretary Hudson, you're telling us. How many employees do
you have over there in TFA told. Am I
the horse in this story? Do what You are the heart. It, it happens every day the
Representative Jim Wooten
Unverified
1:33:24
How about 2300 in all divisions, all divisions all divisions revenue division and then, and DFA 800-ish, Charlie. Well, so
we got about 3100 employees. No, no, no, that's 2300 total
of 300, OK. So uh for 2300, you can't find 2 or 3 or 4 employees for a one time $37,000 don't worry about the swiping of
Speaker 158
1:33:52
the card and all that, uh, you know. I'm just as committed to every single person in this room to running an efficient department that's that's what I'm about. But here's what I know those 2300 employees, they're, they're currently doing something. They're not sitting around waiting for work to be done. And when we're talking about implementing something that's going to be potentially benefiting 30,000 farmers. Who, you know, have things to do and they send us a request for an ID card and they haven't
gotten it and after 4 or 6 weeks they're gonna be calling wanting to know where their card is, so if we're going to provide this service and it is a service, we need to adequately staff it, do it right, once we get it up and running like everything else we do in apartment, there's an opportunity to gain efficiencies, we're going to gain the efficiencies, but I'd rather be upfront with you and say it's gonna cost. something on the front end to get it stood up than to overpromise and
Representative Jim Wooten
Unverified
1:34:49
underdeliver thank you. Are you ready for a motion
Representative Les D. Eaves
Unverified
1:34:56
Representative Es held his hand up. Almost if a farmer is denied a card because I guess you're doing sort of a background check to verify that they are entitled to that these exemptions. If they're denied a card, can they still get the old paper exemption form and use it. And then wait to be audited to maybe get caught. The exemption
Speaker 143
1:35:12
form would continue in use, yes, sir. Sorry, I didn't think about that I can get rid of it
Representative DeAnn Vaught
Unverified
1:35:27
I mean, I can write a bill that gets rid of that little piece of
Speaker 166
1:35:31
paper if you want me to, Representative Eaves.
Speaker 150
1:35:34
I or I can amend this and get rid of it. I think what's also important to comment on that issue is there
Representative Ron McNair
Unverified
1:35:40
there might be farmers that do not want to go through this process and would still want to use the form, uh, potentially, uh, so I mean we would want to make sure that if a if a Someone that is qualified to claim the exemption that they don't necessarily have to go through this process to obtain the card that they could
continue to because there might be a farmer that, you know, is in. Hot springs for the weekend and he sees a great deal on a piece of machinery. We don't want him to have to, to limit that, that retailer for transactions to only people that have applied through our process
Representative Les D. Eaves
Unverified
1:36:11
to get the benefit of the exemption, but to the whole point of the bill, then he's got to carry around this overly
Speaker 188
1:36:17
burdensome piece of paper to get the exemption at this place in Hot Springs, right? Carry
Speaker 150
1:36:22
the form with him. The retailer could continue to have the the blank one, the blank
Representative DeAnn Vaught
Unverified
1:36:27
forms as they currently do right now. OK. Yes, sir. I will say. I don't know a farmer. I know lots of farmers, but I don't know one farmer that will not apply for this because they have all been asking for this for years and years. It's been a priority of farm bureaus for years and years because farmers are constantly asking why is it harder for us to get our tax exempt stuff than it is if I go to a different state and do it. And that's why I brought the piece of legislation.
Chair
Unverified
1:36:59
Representative Berkshire recognized. I just have one quick question relating to this. It's really an identification card. We've established we're not scanning it. Is there anything that the vendor is required to like verify that that's your can I take Mindy's car when I go to Lowe's and buy, you know, is there anything to stop that from happening. anything to stop that now. Right. I
Representative DeAnn Vaught
Unverified
1:37:22
mean, there's really nothing that stops that now. I could go sign Mindy's name or you could go sign Mindy's name and they would never know the
difference. There's nothing that Keeps that from happening as it
is right now. OK. Representative Eaton, you're recognized. Sorry, I did want
Representative James Eaton
Unverified
1:37:40
to address that. If you go by a farm products typically you're going to the same place, so I
would. The people that I know and do that with, they would be a little suspect if you came in and wanted to buy a fencing supplies or fencing supplies actually don't count, but if you want to buy.
fertilizer in my name, they would be a little suspect on that. So I don't think that's as widespread as it might seem like. That's just
my take on that side. I concur with what he said. Thank you, Representative. All right, I think
we have rode this horse to the finish line like my analogy and then now I believe Representative Wootton, you have a motion at the proper time and now is the proper time. Thank you, Madam Chairman.
Representative Jim Wooten
Unverified
1:38:33
They've asked for this for years and wanted it, the farmers have, and it simplifies the process for them rather than having to sign a form every single time that they go in and it's Mr. um Paul pointed out, uh, the forms will still be available if they
don't want to apply for but anyway, um, um, do pass recommend do pay us. We have
a motion to pass any discussion on the motion. No discussion.
Well, Anybody that speak for or against the bill, we've we've gone so
long I forgot that. See none with that we have a motion do pass, all in favor say aye. A poll say nay. No. The eyes have it, congratulations, your bill has passed. Thank you, ma'am. Thank you committee. Thank you. With that members, we're going to move down to SB 200 and my understanding is Representative McClure is going to present this
bill for us because the other horse race lasted a long time. And if you will, please introduce yourself for
Representative Rick McClure
Unverified
1:39:49
the record and you'll be recognized. Representative Rick McClure District 29, filling in for the bill's sponsors and hopefully this will be very short and sweet, very uh very common sense. You have it in front of you there is uh clarification that needs to be made. It finds, uh, we found out that we have
schools that are paying sales tax on some of their least uh least equipment or least curriculums, not curriculums, but subscriptions. So there just needs to be a clarification in that, and that's basically it. There's no financial ins uh impact at all, no resources required. And so that's it. Members, we will be able to take a vote on this one. So are
there any questions members? Saying none, Representative McClure, would you like to close for your bill? I'm closed.
Uh, is anybody speak for or against the bill? Nobody signed up. Thank you. He's closed for his build. Would you like to make a motion? Yes, I'd make a motion to pass. I have a motion to pass all in favor say aye. Again Nate. Congratulations your bill has passed. Thank you. With that, members, that's gonna be the last bill that we're gonna hear today. I thank y'all all for your dedication and I will see Thursday is our next meeting and we do have a special order and then we'll be hearing other bills around the special order.
Agenda
HB1116 Ray TO CREATE THE REMOTE AND MOBILE WORK MODERNIZATION AND COMPETITIVENESS ACT; AND TO PROVIDE INCOME TAX AND WITHHOLDING EXEMPTIONS RELATED TO CERTAIN REMOTE AND MOBILE EMPLOYEES AND NONRESIDENTS.
REGULAR AGENDA
HB1018 Hudson TO CREATE THE STRONG FAMILIES ACT; AND TO CREATE AN INCOME TAX CREDIT FOR EMPLOYERS THAT PROVIDE PAID FAMILY AND MEDICAL LEAVE FOR CERTAIN EMPLOYEES.
HB1076 Hudson TO CREATE THE CARING FOR CAREGIVERS ACT; AND TO PROVIDE AN INCOME TAX CREDIT FOR EXPENSES INCURRED IN CARING FOR CERTAIN FAMILY MEMBERS.
HB1190 Vaught TO CREATE AN INCOME TAX EXEMPTION FOR TEACHERS.
HB1366 Ennett TO CREATE AN INCOME TAX CREDIT FOR QUALIFIED STORM SHELTERS.
HB1388 Vaught TO EXEMPT CERTAIN STORAGE SERVICES FROM SALES TAX; AND TO EXEMPT THE SERVICE OF FURNISHING ACCOMMODATIONS BY A TOURIST CAMP OR A TOURIST COURT FROM SALES TAX, AS AFFIRMED BY REFERRED ACT 19 OF 1958.
HB1500 Beaty Jr. TO ENHANCE ECONOMIC COMPETITIVENESS BY REPEALING THE THROWBACK RULE.
HB1501 Beaty Jr. TO ADOPT FEDERAL INCOME TAX LAW REGARDING DEPRECIATION AND THE EXPENSING OF PROPERTY; AND TO INCREASE THE AMOUNT ALLOWED FOR THE EXPENSING OF CERTAIN DEPRECIABLE BUSINESS ASSETS TO THE AMOUNT ALLOWED UNDER FEDERAL LAW.
HB1538 Ray TO AMEND THE LAW CONCERNING THE NET OPERATING LOSS INCOME TAX DEDUCTION; AND TO INCREASE THE CARRY-FORWARD PERIOD FOR THE NET OPERATING LOSS INCOME TAX DEDUCTION.
HB1540 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.-
HB1594 Vaught TO CREATE A FARMER SALES TAX IDENTIFICATION CARD; AND TO RELIEVE A SELLER OF SALES TAX REMITTANCE LIABILITY UPON GOOD FAITH ACCEPTANCE OF A FARMER SALES TAX IDENTIFICATION CARD.
HB1599 Torres TO PROVIDE FOR CERTAIN PROPERTY TO BE EXEMPT FROM TAXATION.
SB200 K. Hammer TO INCLUDE TEXTBOOKS AND OTHER INSTRUCTIONAL MATERIALS THAT ARE LEASED IN THE EXEMPTION FROM THE GROSS RECEIPTS TAX.
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.
SB263 Crowell TO INCREASE THE HOMESTEAD PROPERTY TAX CREDIT.
HB1657 Beck TO AMEND THE ARKANSAS WOOD ENERGY PRODUCTS AND FOREST MAINTENANCE INCOME TAX CREDIT.
HB1665 Wardlaw TO AMEND THE LAW CONCERNING THE INSURANCE PREMIUM TAX; AND TO REPEAL THE CREDIT ALLOWED AGAINST THE INSURANCE PREMIUM TAX BASED ON THE SALARY AND WAGES OF THE EMPLOYEES OF THE INSURER.
HB1670 L. Johnson TO CREATE THE PRECEPTOR TAX INCENTIVE PROGRAM; AND TO PROVIDE INCENTIVES FOR CERTAIN MEDICAL OR COUNSELING PROFESSIONALS TO TRAIN CERTAIN STUDENTS WHO ARE LEARNING TO BECOME MEDICAL OR COUNSELING PROFESSIONALS.
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.
HB1674 L. Johnson TO CREATE AN INCOME TAX CREDIT FOR CONTRIBUTIONS TO CERTAIN RURAL HOSPITAL ORGANIZATIONS; AND TO CREATE THE HELPING ENHANCE ACCESS TO RURAL TREATMENT (HEART) ACT.
HB1685 Underwood TO CREATE THE GROCERY TAX RELIEF ACT; TO AMEND THE LAW CONCERNING THE SALES AND USE TAXES LEVIED ON FOOD AND FOOD INGREDIENTS, AS AFFIRMED BY REFERRED ACT 19 OF 1958; AND TO EXEMPT GROCERIES FROM STATE SALES AND USE TAXES.
HB1687 K. Moore TO PROVIDE THAT A WATER AUTHORITY IS EXEMPT FROM ALL EXCISE TAXES.
HB1691 Torres TO PROVIDE FOR CERTAIN PROPERTY TO BE EXEMPT FROM TAXATION; AND TO PROVIDE THAT CERTAIN MOTOR VEHICLES USED EXCLUSIVELY FOR PUBLIC CHARITY ARE EXEMPT FROM PERSONAL PROPERTY TAX.
HB1698 Torres TO AMEND THE LAW CONCERNING THE INCOME TAX TREATMENT OF EMPLOYER CONTRIBUTIONS TO 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.
HB1708 Underwood THE KEEP THE BONUS, AXE THE TAX: THE NO-TAX BONUS ACT.
SB219 J. Dismang TO REPEAL THE SUNSET PROVISION OF THE ARKANSAS MEDICAL MARIJUANA SPECIAL PRIVILEGE TAX ACT OF 2017; AND TO DECLARE AN EMERGENCY.
Documents
| Title | Type | Pages | Source |
|---|---|---|---|
| Agenda — REVENUE & TAXATION- HOUSE, Mar 11, 2025 | Agenda | 4 | Official source ↗ |
Speakers
Representative Frances Cavenaugh Chair
Unverified
Representative Bart Schulz
Unverified
Representative David Ray
Unverified
Speaker 17
Speaker 26
Speaker 27
Speaker 16
Representative Rick McClure
Unverified
Representative Roger D. Lynch
Unverified
Speaker 45
Representative Ry
Unverified
Representative Johnny Rye
Unverified
Speaker 28
Speaker 60
Representative Les D. Eaves
Unverified
Speaker 13
Representative DeAnn Vaught
Unverified
Speaker 80
Speaker 105
Representative Jim Wooten
Unverified
Chair
Unverified
Speaker 134
Representative Ron McNair
Unverified
Speaker 142
Speaker 143
Speaker 150
Speaker 157
Speaker 158
Representative Robin Lundstrum
Unverified
Speaker 164
Speaker 169
Speaker 173
Representative John P. Carr
Unverified
Speaker 182
Speaker 139
Speaker 193
Representative Lane Jean
Unverified
Speaker 171
Speaker 156
Speaker 24
Speaker 192
Representative Mindy McAlindon
Unverified
Speaker 204
Speaker 202
Representative Richard McGrew
Unverified
Speaker 230
Speaker 166
Speaker 188
Representative James Eaton
Unverified