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HB 1971

TO AMEND THE REQUIREMENTS CONCERNING THE INFORMATION THAT SHALL BE PROVIDED TO A CITY OR COUNTY BY THE DEPARTMENT OF FINANCE AND ADMINISTRATION.

2025 Regular Session Introduced by Howard Beaty and 1 co-sponsor

HB 1971 allows local governments to access vendor tax information, enhancing transparency for tax collection while ensuring confidentiality of sensitive data.

Died in House Committee at Sine Die adjournment.
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Bill Summary · HB 1971

Summary of House Bill 1971 (HB 1971)

Purpose and Intent

House Bill 1971 (HB 1971) was introduced to amend the Arkansas Tax Procedure Act, specifically regarding the confidentiality of tax records and the information that the Department of Finance and Administration (DFA) must provide to city and county governments. The bill aimed to streamline the process for local governments to access information about vendors operating within their jurisdictions, enhancing transparency and facilitating local tax administration.

Key Provisions

HB 1971 proposed several significant changes to existing law:

  1. Vendor Information Disclosure:

    • The DFA would be required to provide a report to city or county governments upon request, detailing vendors within the jurisdiction who hold permits under the Arkansas Gross Receipts Act and the Arkansas Compensating Tax Act.
    • Requests for this information could be made at any time but must be submitted electronically by an official of the requesting government before August 1 of the calendar year for which the information is sought.

  2. Report Details:

    • The report would include a list of valid sales tax permit holders as of September 1 of the requested year, along with the North American Industry Classification System (NAICS) code for each vendor.
    • Reports would be delivered electronically after October 1 of the requested year.

  3. Fees for Information:

    • A reasonable fee could be charged based on the number of permit holders in the requesting jurisdiction. These fees would be deposited into the State Central Services Fund to reimburse the DFA for the costs incurred in providing the information.

  4. Confidentiality:

    • The bill emphasized that any information received by city or county governments would remain confidential and not subject to public disclosure, except as permitted by the law.

  5. Effective Date:

    • The provisions of the bill were set to take effect on January 1, 2026.

Impact

If enacted, HB 1971 would have impacted local governments by providing them with better access to vendor information, potentially improving local tax collection efforts and compliance. The confidentiality provisions would also ensure that sensitive tax information remained protected.

Legislative Actions

  • Introduced: April 2, 2025
  • Committee Referral: The bill was read for the first time, rules were suspended, and it was referred to the Committee on Revenue & Taxation on April 3, 2025.
  • Outcome: HB 1971 died in the House Committee at Sine Die adjournment on May 5, 2025, meaning it did not advance for further consideration.

This summary provides an overview of HB 1971, detailing its intent, key provisions, potential impacts, and legislative journey.

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

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