HB1203
To Protect Arkansas Taxpayers From A Tax To Collect Taxes.
AI-Generated Summary
This bill, House Bill 1203, proposes to amend existing Arkansas law regarding the issuance of sales tax permits. Specifically, it aims to prohibit the Secretary of the Department of Finance and Administration from charging a fee for obtaining a new sales tax permit. The current law mandates a nonrefundable fee of fifty dollars ($50.00) to be submitted with each new permit application. This bill would strike that requirement. It also addresses existing provisions for persons without a permanent domicile in Arkansas who are required to make a cash deposit or bond to cover their annual sales tax. The bill clarifies how funds received under these provisions are to be deposited and used by the Revenue Division of the Department of Finance and Administration. The stated purpose of the bill is to protect Arkansas taxpayers from a tax to collect taxes.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be businesses seeking to obtain a sales tax permit in Arkansas. This includes both new businesses and businesses already operating in the state that need to acquire a permit. Specifically, entities that currently have to pay the $50 nonrefundable fee to obtain a new permit would no longer incur this cost. This could potentially lower the barrier to entry for new businesses and reduce administrative costs for existing ones operating in Arkansas.
Who Might Suffer?
The negatively impacted entity would primarily be the State of Arkansas, specifically through its Department of Finance and Administration and the State Central Services Fund. By eliminating the $50 fee for sales tax permits, the state will forgo a source of revenue that currently contributes to the State Central Services Fund. While the bill aims to protect taxpayers, this revenue reduction could potentially impact the funding available for state services funded by this particular fee, depending on the volume of permits issued.