Arkansas House Bill HB1146

Arkansas 2023 Regular Session

• Introduced: 1/17/23
• Refer: 1/17/23
• Failed: 5/1/23

Caption

To Protect Arkansas Taxpayers From A Tax To Collect Taxes.

Impact

If enacted, HB1146 would directly amend Arkansas Code § 26-52-203, which currently mandates the payment of a fee prior to the issuance of a sales tax permit. The bill's passage could result in a significant shift in how businesses interact with state tax regulations, allowing more entities to register for tax permits without the added upfront cost. This could enhance compliance and reporting as more businesses may be incentivized to operate within the legal framework of the state tax system.

Summary

House Bill 1146, titled 'To Protect Arkansas Taxpayers From A Tax To Collect Taxes', seeks to prohibit the Department of Finance and Administration from charging any fee for obtaining a sales tax permit. This bill addresses the existing $50 nonrefundable fee that is currently required as a condition for issuing Arkansas gross receipts tax permits. Proponents of the bill argue that eliminating this fee would alleviate financial burdens on new businesses and encourage economic growth in the state by making it easier for entities to establish retail operations.

Contention

The legislative discussions around HB1146 may trigger debates on the balance between state revenue generation and support for local businesses. While the removal of such fees is generally supported by business advocates concerned with reducing barriers to entry, there may be resistance from lawmakers who argue that the fees provide necessary funding for regulatory oversight. The implications of reducing fees could also lead to discussions on the potential impact on state revenue streams, which are vital for funding public services.