Arkansas House Bill HB1379

Arkansas 2023 Regular Session

• Introduced: 2/8/23
• Refer: 2/8/23
• Report Pass: 2/21/23
• Engrossed: 2/22/23
• Refer: 2/22/23
• Report Pass: 3/1/23
• Enrolled: 3/2/23
• Chaptered: 3/6/23
• Passed: 3/6/23

Caption

To Require The Electronic Filing Of Certain Sales And Use Tax Returns.

Impact

The implementation of HB1379 is expected to modernize the tax filing process, reducing paperwork and potential errors involved in manual submissions. By requiring electronic filing, the state aims to enhance compliance rates and accelerate the processing of tax returns. Additionally, the Secretary of the Department of Finance and Administration is given the authority to waive these electronic requirements in cases where filing electronically poses undue hardship on the taxpayer, thereby providing a safety net for small businesses or taxpayers facing challenges with digital processes.

Summary

House Bill 1379 aims to mandate the electronic filing of certain sales and use tax returns for taxpayers in Arkansas. Starting from tax years beginning on or after January 1, 2024, taxpayers with an average monthly gross receipts tax liability of $5,000 or more will be required to submit their returns and remittances electronically. This bill is part of an effort to streamline tax administration across the state, promoting efficiency and accuracy in the tax collection process.

Sentiment

The sentiment surrounding HB1379 appears generally positive among supporters who view it as a necessary step in updating Arkansas tax laws for the digital age. Proponents argue that electronic filing can lead to improved efficiency, reduced costs for the state, and thorough tax compliance. However, there are concerns about the potential burdens on smaller businesses that may struggle with the transition to electronic systems, especially in rural areas where internet access may be limited.

Contention

A notable point of contention during discussions around HB1379 is the balance between modernization of tax processes and the readiness of all taxpayers to transition to electronic filing. Critics, while acknowledging the benefits, emphasize the need for adequate support and resources for small businesses to adapt to the forthcoming changes. Ensuring that the transition does not disproportionately affect those who may lack the necessary infrastructure or technical support remains a crucial issue among legislators and community stakeholders.