SB561 - Arkansas Tax Reform Act of 2019

• Transfers administration and collection of corporate franchise tax from Secretary of State to Department of Finance and Administration, effective May 1, 2021

• Eliminates franchise tax penalty on closed businesses that can demonstrate they were not doing business in the state and intend to dissolve

• Requires biennial reports to Legislature and Governor analyzing effects of income tax and sales/use tax exemptions, discounts, credits, and deductions, including revenue loss estimates for six-year periods

• Establishes mandatory guidelines for county assessors regarding assessment of exempt property and business inventory, with penalties for noncompliance and potential funding reductions

• Exempts certain advertising (newspapers, publications, billboards, and public transit buses) from sales tax and regulates all-terrain vehicle farm equipment exemption with required reporting forms