HB1108
An Act For The Office Of The Treasurer Of State - Refund Of Local Taxes Appropriation For The 2025-2026 Fiscal Year.
AI-Generated Summary
This bill appropriates funds for the refund of local sales and use taxes in Arkansas for the fiscal year ending June 30, 2026. Specifically, it allocates $1,100,000,000 for refunding cities' shares of these taxes and $990,000,000 for refunding counties' shares. The funds are to be disbursed by the Office of the Treasurer of State from the Local Sales and Use Tax Trust Fund. The act mandates compliance with various state fiscal control laws and regulations. It also states legislative intent that funds be disbursed according to the stated reasons for the act's adoption. An emergency clause is included, declaring the act necessary for the immediate preservation of public peace, health, and safety, making its effective date July 1, 2025.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be cities and counties in Arkansas. The legislation specifically appropriates substantial sums to the Office of the Treasurer of State for the purpose of refunding each city's and county's share of local sales and use taxes. This suggests that entities within these local governments, potentially including municipal and county treasuries or general funds, would receive these refunded tax revenues, which could then be used for public services or other governmental functions.
Who Might Suffer?
The primary entities that could be negatively impacted by this bill are the sources from which the Local Sales and Use Tax Trust Fund is derived, as these appropriations represent significant outgoing funds. If the intent is to refund taxes that were already collected and allocated, this could lead to a deficit in the fund or necessitate drawing from other revenue streams to cover these refunds. While the bill itself appropriates funds for refunds, the underlying mechanism that would cause these taxes to be refunded needs further context to determine direct negative impacts on taxpayers or specific industries, as it implies an overcollection or an error in taxation that requires correction.