The bill amends existing Arkansas tax law to update the income tax deductions for moving and travel expenses. It authorizes the Department of Finance and Administration to set the per-mile deduction for travel and transportation expenses through a proclamation. Specifically, the bill introduces new provisions that allow the Secretary of the Department to determine the per-mile deduction amount, which cannot exceed one dollar ($1.00) per mile. Additionally, the Secretary is required to align the per-mile deduction as closely as possible with the amount established by the Internal Revenue Service, issuing a proclamation within thirty days of any changes made by the IRS.

The bill also makes several amendments to existing code sections, including the removal of outdated references and the addition of new subdivisions that clarify the definitions of rules related to proclamations issued by the Secretary. Notably, it deletes previous language regarding the determination of travel expenses and replaces it with the new framework for setting the per-mile deduction. Other adjustments include changes to the treatment of deductions for moving expenses and the categorization of certain expenses under the Arkansas Administrative Procedure Act. Overall, the bill aims to streamline the process for determining travel-related tax deductions while ensuring they remain fiscally responsible for taxpayers.

Statutes affected:
SB 412: 10-3-309(b), 25-15-202(9), 26-51-403(b), 26-51-423(a), 26-51-423(c), 26-51-423(g), 26-51-437(b)
Act 614: 10-3-309(b), 25-15-202(9), 26-51-403(b), 26-51-423(a), 26-51-423(c), 26-51-423(g), 26-51-437(b)