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Bill

Bill

HB 1497

RELATING TO AGRICULTURE.

2025 Regular Session Introduced by Luke Evslin and 4 co-sponsors

House Bill 1497 allows the Department of the Military to offset state tax refunds for individuals with unpaid fines, improving debt collection efficiency.

Reported from AEN (Stand. Com. Rep. No. 1077) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
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Bill Summary · HB 1497

Summary of House Bill 1497 (HB 1497)

Title

Relating to Agriculture

Status

  • Reported from AEN (Stand. Com. Rep. No. 1077) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
  • Introduced on February 17, 2025.

Purpose

House Bill 1497 aims to amend existing legislation to include the Department of the Military as a claimant agency authorized to offset state income tax refunds for individuals who owe debts to the department. This bill seeks to enhance the state's ability to collect unpaid fines and improve the efficiency of tax refund processing.

Key Provisions

  1. Addition of Claimant Agency:

    • The bill amends Arkansas Code § 26-36-303(1)(A) to add the Department of the Military to the list of claimant agencies. This allows the department to collect debts by offsetting state tax refunds.
  2. Definition of Debt:

    • The bill also amends § 26-36-303(2)(D) to include fines imposed under specific sections of the law (namely § 12-64-301 and §§ 12-64-403 – 405) in the definition of "debt." This means that unpaid fines can now be collected through tax refund offsets.
  3. Implementation Requirements:

    • Updates to computer programs, tax forms, and instructions will be necessary, with estimated programming costs for the Arkansas Integrated Revenue System (AIRS) at approximately $4,000.

Impact

  • Taxpayers: Individuals who owe fines to the Department of the Military may have their state income tax refunds offset to satisfy these debts. This could affect taxpayers who are unaware of their outstanding fines.
  • Administrative Changes: Department employees and the tax community will need training on the new provisions, and instructional materials will require updates to reflect the inclusion of the Department of the Military as a claimant agency.

Procedural Timeline

  • February 17, 2025: Bill introduced and passed first reading.
  • February 20, 2025: Recommended for passage by the Finance Committee.
  • March 10, 2025: Amendment No. 1 adopted, and the bill was reported correctly engrossed.
  • March 20, 2025: Passed third reading in both the House and Senate.
  • March 25, 2025: Notification that HB 1497 is now Act 411.

Conclusion

House Bill 1497 represents a significant step in enhancing the state's ability to collect debts owed to the Department of the Military by allowing for the offset of state tax refunds. This legislative change aims to streamline the collection process and ensure that fines imposed by the department are effectively addressed.

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

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