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AR HB1830

Bill

Status

Failed

4/24/2019

Primary Sponsor

Grant Hodges

Click for details

Origin

House of Representatives

92nd General Assembly (2019 Regular)

AI Summary

  • Creates an exemption from Arkansas income tax for nongrantor trusts administered by a trustee who is a resident of Arkansas under Arkansas Code Title 26, Chapter 51, Subchapter 3.

  • Applies the exemption only to trusts that are not considered grantor trusts under 26 U.S.C. § 671 et seq., as those provisions existed on January 1, 2019.

  • Intended to increase Arkansas's competitiveness in the financial services sector by attracting out-of-state trust assets to be administered by Arkansas trustees.

  • Aims to discourage Arkansas residents from establishing nongrantor trusts in foreign states by removing the tax incentive to do so.

  • Effective for tax years beginning on or after January 1, 2019.

Legislative Description

To Amend The Income Tax Laws Relating To Certain Trusts; To Preserve Certain Trust Assets; And To Exempt Certain Trusts From Income Tax.

Last Action

Died on House Calendar at Sine Die Adjournment

4/24/2019

Committee Referrals

Revenue and Taxation3/14/2019

Full Bill Text

No bill text available