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AR SB233

Bill

Status

Failed

5/5/2025

Primary Sponsor

Clint Penzo

Click for details

Origin

Senate

95th General Assembly (2025 Regular)

AI Summary

  • Exempts nongrantor trusts from Arkansas state income tax when administered by a trustee who is an Arkansas resident

  • Nongrantor trust status is determined by federal tax code (26 U.S.C. § 671 et seq.) as it existed on January 1, 2025

  • Aims to make Arkansas more competitive in attracting out-of-state trust assets for administration by Arkansas trustees

  • Addresses Arkansas residents currently establishing trusts in other states to avoid trust-level taxation

  • Effective for tax years beginning on or after January 1, 2025

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 Senate Committee at Sine Die adjournment.

5/5/2025

Committee Referrals

Revenue & Taxation2/13/2025

Full Bill Text

No bill text available