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Bill Summary · SB 412

Summary of Senate Bill 412 (SB 412)

Purpose and Intent

Senate Bill 412 (SB 412) aims to amend the income tax deductions related to travel and transportation expenses in the state of Arkansas. The bill authorizes the Secretary of the Department of Finance and Administration (DFA) to set the per-mile deduction for these expenses by proclamation, aligning state tax benefits more closely with federal standards.

Key Provisions

  • Per-Mile Deduction Authority: The Secretary of the DFA is empowered to establish the per-mile deduction for travel and transportation expenses, with a maximum limit of $1.00 per mile.
  • Alignment with Federal Standards: The Secretary must set the state deduction as close to the federal per-mile deduction as is fiscally responsible, ensuring that taxpayers do not face undue hardship.
  • Timely Updates: The Secretary is required to issue a proclamation to adjust the state per-mile deduction within 30 days of any changes made by the Internal Revenue Service (IRS).
  • Amendments to Existing Laws: The bill amends several sections of the Arkansas Code to reflect these changes, including provisions related to business expenses, medical expenses, and moving expenses.

Impact

  • Taxpayer Benefits: Taxpayers will benefit from a more streamlined process for claiming travel and transportation deductions, ensuring they receive similar benefits at the state level as they do federally.
  • Administrative Changes: The DFA will need to update computer programs, tax forms, and instructions to implement the new provisions. Additionally, education for department employees and the tax community will be necessary to facilitate these changes.

Procedural Timeline

  • Introduced: March 10, 2025
  • Reported from Committee: The bill was reported from the EIG/GVO committee with recommendations for passage on February 6, 2025.
  • Passed: The bill passed through various readings and was ordered enrolled by April 8, 2025.
  • Governor's Approval: SB 412 was delivered to the Governor on April 9, 2025, and subsequently became Act 614 on April 14, 2025.

Conclusion

SB 412 represents a significant update to Arkansas's tax code regarding travel and transportation deductions. By allowing the DFA Secretary to set the per-mile deduction through proclamation, the bill aims to enhance taxpayer benefits and ensure timely alignment with federal tax regulations.

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

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