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HB 1716

Supporting employers providing child care assistance to employees by establishing a business and occupation tax credit for businesses and requiring the department of revenue to provide a report to the legislature.

2023-2024 Regular Session Introduced by Mike Chapman and 6 co-sponsors

HB1716 bars DFA from re-assessing gross receipts or use tax on the same tangible property after a final favorable exemption decision, unless the exemption law changes.

Public hearing in the House Committee on Finance at 8:00 AM.
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Bill Summary · HB 1716

Summary — HB 1716

Bill number: HB 1716
Primary subject (substantive): Limits on reassessment of sales and use tax by the Department of Finance and Administration (DFA)
Introduced: December 30, 2024
Primary sponsors (Arkansas): Rep. Cavenaugh; Sen. Caldwell
Companion: SB 469
Status: Records are inconsistent. The top summary provided lists the bill as “Died In Committee.” Some embedded legislative-action entries (apparently from other sources) conflict with that. This summary focuses on the bill text and DFA fiscal analysis supplied in the documents.

Note: The bill header/title included in the materials (“Appropriation; reappropriate 2024 local projects funds to Marshall County…”) does not match the bill text or DFA fiscal analysis. The substantive materials amend Arkansas tax law concerning DFA assessments; this summary treats that as the operative content.

Purpose / Intent

HB 1716 would protect taxpayers from repeat assessments of gross receipts (sales) or compensating (use) tax by DFA on tangible personal property when the taxpayer previously obtained a final favorable determination that the sale or purchase was exempt. The intent is to prevent DFA from re-assessing the same tax on the same property and use after an administrative or judicial decision in the taxpayer’s favor, except when the law changes.

Key provisions

  • Adds a new subsection to Ark. Code § 26-18-401 prohibiting the Secretary of DFA from issuing a subsequent assessment of gross receipts or compensating use tax on the sale or purchase of the same tangible personal property when the taxpayer previously appealed and received a determination that the transaction qualified for an exemption under relevant Arkansas tax statutes.
  • Specifies eligible favorable determinations as those issued by:
    • The Office of Hearings and Appeals (§ 26-18-405), or
    • The Tax Appeals Commission (§ 26-18-1116), or
    • A circuit court (§ 26-18-406), or
    • The Arkansas Supreme Court, provided the decision is final (not pending review or overturned on review).
  • Limits the protection to the same taxpayer and when the property is used in the same manner that was determined to be exempt.
  • Creates exceptions: the prohibition does not apply if there is a material change in the law affecting the exemption, specifically:
    • New legislation by the General Assembly;
    • An amendment or repeal of the relevant statute;
    • A newly promulgated or amended administrative rule approved by the Legislative Council under § 10-3-309; or
    • A subsequent Arkansas Supreme Court decision altering the legal basis for the exemption.

Who would be affected

  • Protected: taxpayers who previously obtained a final, favorable administrative or judicial exemption determination for a particular purchase and continue to use the tangible personal property the same way.
  • Impact on DFA: limits instances where DFA can reassess previously-litigated exemption determinations.
  • Potential secondary effects: reduces uncertainty for taxpayers relying on final exempt determinations; may affect DFA audit and collection practices.

Fiscal and administrative impact

  • DFA fiscal impact statement: No fiscal impact (no additional resources required; adequate time for implementation).
  • Taxpayer impact (as summarized by DFA): Provides assurance that DFA shall not reassess sales/use tax for the same taxpayer and same use of property after a favorable determination unless the law materially changes.

Procedural / timeline notes

  • Introduced December 30, 2024.
  • Sponsor information and committee actions in the provided materials are inconsistent; the top metadata lists status as “Died In Committee.” Interested readers should verify current status and actions in the official Arkansas General Assembly records or legislative website.
  • Companion bill: SB 469.

Additional note

Materials included in the package also contained unrelated or conflicting content (an Illinois HB1716 election-code draft and other legislative-action entries). This summary confines itself to the Arkansas tax-assessment amendment text and DFA fiscal statement.

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

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