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AR HB1932

Bill

Status

Failed

5/5/2025

Primary Sponsor

Austin Mccollum

Click for details

Origin

House of Representatives

95th General Assembly (2025 Regular)

AI Summary

  • Repeals the Arkansas Corporate Franchise Tax Act of 1979, eliminating the annual franchise tax that corporations and LLCs paid ranging from $150 to $400 depending on capital stock and entity type

  • Replaces the franchise tax with a new annual report requirement for corporations and LLCs filed with the Secretary of State, containing company status, officer names, capital stock information, and other data

  • Exempts nonprofit corporations, federally tax-exempt organizations, and partnerships from the annual report requirement

  • Removes approximately $8 million annually from the General Revenue Fund and additional amounts from the Educational Adequacy Fund that were previously funded by franchise tax collections

  • Applies only to franchise taxes imposed after the effective date and does not affect liability for taxes already due or delinquent

Legislative Description

To Amend Laws Concerning The Corporate Franchise Tax; To Repeal The Arkansas Corporate Franchise Tax Act Of 1979; And To Require An Annual Report For Corporations.

Last Action

Died in House Committee at Sine Die adjournment.

5/5/2025

Committee Referrals

Revenue and Taxation3/31/2025

Full Bill Text

No bill text available