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AR HB1512

Bill

Status

Failed

5/1/2017

Primary Sponsor

Andy Davis

Click for details

Origin

House of Representatives

91st General Assembly (2017 Regular)

AI Summary

  • Authorizes the Director of the Department of Finance and Administration to collect sales and use tax from remote sellers (those without physical presence in Arkansas) beginning January 1, 2017

  • Requires the director to certify net general revenues from remote seller collections for the period July 1, 2017 through June 30, 2018, and use any amount exceeding $70 million to reduce the individual income tax rate from 6.9% to 4.5%

  • Establishes new Section 26-52-211 allowing the Department of Finance and Administration to inquire whether permit applicants or holders have a physical presence in the state

  • Modifies food and food ingredients tax provisions (Sections 26-52-317 and 26-53-145) to remove conditions tied to collection timelines and adjust trigger thresholds for tax rate changes

  • Declares an emergency effective upon gubernatorial approval, stating that higher income tax rates harm Arkansas competitiveness with neighboring states and that remote seller tax revenue can offset income tax reductions

Legislative Description

To Reduce The Income Tax Rates Applicable To Individuals, Trusts, And Estates Using Revenues Derived From Sales And Use Tax From Sellers That Do Not Have A Physical Presence In The State; And To Declare An Emergency.

Last Action

Died in House Committee at Sine Die Adjournment

5/1/2017

Committee Referrals

Revenue and Taxation2/13/2017

Full Bill Text

No bill text available