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AR HB1624

Bill

Official Source

Status

Failed

10/15/2021

Primary Sponsor

Clint Penzo

Click for details

Origin

House of Representatives

93rd General Assembly (2021 Regular)

AI Summary

  • Adds a new exemption from Arkansas income tax for nongrantor trusts administered by a resident trustee of Arkansas
  • Exemption applies only to trusts that do not qualify as grantor trusts under 26 U.S.C. § 671 et seq., based on federal law and regulations as they existed on January 1, 2021
  • Intended to increase Arkansas 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 trusts in other states to avoid trust-level taxation by removing the tax incentive
  • Effective for tax years beginning on or after January 1, 2021

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 in House Committee at Sine Die Adjournment

10/15/2021

Committee Referrals

Revenue and Taxation3/3/2021

Full Bill Text

No bill text available