AR SB865

Amends Arkansas Code § 26-18-406(e) to allow taxpayers to be awarded reasonable attorney fees in court proceedings if the director's final assessment or determination was without reasonable basis in law, fact, or both.

Creates new section 26-18-813 establishing a right to reimbursement of fees and other costs for taxpayers seeking administrative relief, including expert witness fees, study/analysis costs, and attorney fees.

Limits reimbursement to the lesser of $20,000 or actual amount spent, with attorney fees capped at $200 per hour unless cost of living increases or special factors justify higher rates.

Requires taxpayers to submit itemized fees within 30 days after final determination, with hearing officers having 30 days to validate the costs.

Allows taxpayers denied administrative relief but subsequently granted judicial relief to recover reasonable fees and costs for the administrative proceeding under the same standards and restrictions.