Arkansas House Bill HB1491

Arkansas 2023 Regular Session

• Introduced: 2/23/23
• Refer: 2/23/23
• Failed: 5/1/23

Caption

To Require The Department Of Finance And Administration To Adopt Rules Before Assessing Or Collecting Certain Taxes.

Impact

The provisions of HB1491 are expected to significantly alter the way tax assessments are executed within the state. By requiring prior legislative approval for new tax assessments, the bill seeks to provide citizens and businesses with a clearer understanding of their tax obligations. This change emphasizes accountability within the Department of Finance and Administration, ensuring that all taxation is legally grounded and transparent, which could lead to increased public trust in the tax system.

Summary

House Bill 1491 introduces amendments to Arkansas's tax collection process, specifically focusing on the assessment and collection of taxes on various items and services. The bill mandates that the Department of Finance and Administration must not assess or collect taxes on any item or service unless the department has previously done so or there has been a corresponding change in statutory law. This legislative measure aims to enhance taxation transparency and ensure that tax collection aligns closely with existing laws, thereby minimizing instances of unexpected tax assessments on citizens.

Contention

While the intent behind HB1491 may be to streamline and clarify the tax collection process, there is potential for contention among stakeholders. Proponents of the bill argue that it protects taxpayers from arbitrary tax increases and ensures due process in tax-related matters. However, critics may express concerns regarding the bill leading to delays in tax collection or creating loopholes that could be exploited. Furthermore, the requirement for legislative approval of new tax provisions may complicate and slow down the introduction of necessary tax changes, potentially hindering the state's ability to respond promptly to economic needs.