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HB 1932

NURSING SCHOLARSHIP PROGRAM

104th Regular Session Introduced by Camille Lilly

HB 1932 aimed to repeal Arkansas' corporate franchise tax and require corporations to file annual reports, simplifying compliance while easing tax burdens.

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 1932

Summary of House Bill 1932

Bill Information

  • Bill Number: HB 1932
  • Title: 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.
  • Status: Died in House Committee at Sine Die adjournment.
  • Introduced: March 31, 2025
  • Classification: Bill

Purpose and Intent

House Bill 1932 aimed to amend existing laws related to the corporate franchise tax in Arkansas. The primary objectives of the bill were to:
- Repeal the Arkansas Corporate Franchise Tax Act of 1979.
- Establish a requirement for corporations to file an annual report with the Secretary of State.
- Make necessary conforming changes to existing statutes.

Key Provisions

The bill proposed several significant changes, including:

Repeal of Existing Tax Act

  • The bill sought to repeal the Arkansas Corporate Franchise Tax Act of 1979, effectively eliminating the corporate franchise tax as it currently stands.

Annual Reporting Requirements

  • Definition of Corporations: The bill defined "corporation" to include various entities such as limited liability companies, both domestic and foreign, while excluding nonprofit organizations and certain tax-exempt entities.
  • Annual Report Filing: Corporations would be required to file an annual report detailing their status and condition as of the end of their preceding fiscal year. This report would include:
    • Name and address of the corporation.
    • Names of principal officers.
    • Total authorized and issued shares.
  • Confidentiality: Most information in the annual report would be confidential, with only specific details available for public inspection.

Administrative Provisions

  • The Secretary of State would be responsible for providing annual report forms and maintaining a list of corporations.
  • Corporations failing to receive the report forms by March 20 would need to request them by March 31.

Impact

The proposed changes would have affected all corporations operating in Arkansas, requiring them to adapt to new reporting obligations while eliminating the franchise tax burden. The bill aimed to streamline corporate compliance and reduce administrative overhead for both the state and businesses.

Procedural Aspects

  • Legislative Timeline:
    • March 31, 2025: Bill filed.
    • April 1, 2025: Read for the first time, rules suspended, and referred to the Committee on Revenue & Taxation.
    • May 5, 2025: Bill died in House Committee at Sine Die adjournment.

In summary, HB 1932 proposed significant reforms to corporate tax and reporting requirements in Arkansas, aiming to simplify compliance for businesses while eliminating the corporate franchise tax. However, the bill ultimately did not progress beyond the committee stage.

Compiled from official sources — confirm details with the bill’s official record.

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