AR HB1750

Repeals the Arkansas Corporate Franchise Tax Act of 1979 in its entirety, eliminating the annual franchise tax currently imposed on corporations and limited liability companies doing business in Arkansas

Removes the requirement for corporations to file annual franchise tax reports with the Secretary of State, which previously required information on capital stock, officers, and property values

Eliminates franchise tax rates that ranged from $150 minimum for general corporations to $400 for insurance companies with capital stock of $500,000 or more, calculated at 0.3% of par value of outstanding capital stock

Makes conforming changes to multiple Arkansas Code sections, including removing franchise tax references from certificate of existence requirements, benefit corporation reporting, and the Educational Adequacy Fund revenue sources

Arkansas joins 34 other states without this type of franchise tax, which the legislature found burdensome on new businesses, low-profit-margin businesses, and businesses experiencing economic downturns since it taxes capital stock rather than revenue or profit