The bill, HB1239, proposes significant amendments to the Arkansas Corporate Franchise Tax Act of 1979, primarily by repealing the existing act and introducing a new section, 4-25-111, which outlines the requirements for annual reports for corporations. This new section defines what constitutes a corporation, details the responsibilities of the Secretary of State in providing annual report forms, and emphasizes the confidentiality of the information contained in these reports. Corporations are mandated to file annual reports detailing their status and condition, with penalties established for false declarations. The bill also clarifies that certain organizations, such as nonprofit corporations and those exempt from federal income tax, are not included under the definition of a corporation for these reporting purposes.

In addition to repealing the minimum franchise tax requirement of $150 and exempting organizations formed under the Uniform Limited Liability Company Act from this tax, the bill modifies the filing process for franchise tax reports. It introduces provisions for waiving penalties and interest for taxpayers who can demonstrate reasonable mistakes or financial hardship. Furthermore, it establishes restrictions on corporations with past-due franchise taxes, preventing them from filing any forms with the Secretary of State and barring individuals associated with these corporations from creating new legal entities. Overall, the legislation aims to streamline corporate reporting processes and provide relief options for financially struggling corporations.

Statutes affected:
Old version HB1239 Original - 1-24-2023 02:21 PM: 4-27-1622, 4-20-105(a), 4-27-121(a), 26-54-101, 4-36-401(a), 4-36-401(b), 4-37-205(a), 4-37-206, 26-54-105, 4-38-212(f), 19-5-1227(b), 19-6-201(3)
Old version HB1239 V2 - 3-27-2023 10:55 AM: 4-27-1622, 4-20-105(a), 4-27-121(a), 26-54-101, 4-25-111, 4-36-401(a), 4-36-401(b), 4-37-205(a), 4-37-206(a), 4-38-212(f), 19-5-1227(b), 19-6-201(3)
Old version HB1239 V3 - 3-27-2023 11:57 AM: 4-27-1622, 4-20-105(a), 4-27-121(a), 26-54-101, 4-25-111, 4-36-401(a), 4-36-401(b), 4-37-205(a), 4-37-206(a), 4-38-212(f), 19-5-1227(b), 19-6-201(3)
HB 1239: 4-27-1622, 4-20-105(a), 4-27-121(a), 26-54-101, 4-25-111, 4-36-401(a), 4-36-401(b), 4-37-205(a), 4-37-206(a), 4-38-212(f), 19-5-1227(b), 19-6-201(3)