The bill amends the Arkansas Code concerning the assessment and collection of taxes by the Secretary of the Department of Finance and Administration. It introduces a new provision that prohibits the assessment of gross receipts or compensating use tax against a taxpayer if they have previously appealed an assessment or denial of a refund and received a favorable decision regarding an exemption under the Arkansas Gross Receipts Act or the Arkansas Compensating Tax Act. This protection applies only if the taxpayer is using the tangible personal property in the same manner as previously determined to be exempt.

However, the bill also outlines exceptions to this prohibition. If there is a material change in the law regarding the qualifications for the exemption that was the basis of the previous decision, the Secretary may reassess the tax. Such changes could arise from new laws enacted by the General Assembly, amendments or repeals of existing laws, newly promulgated rules, or subsequent Supreme Court decisions. This legislation aims to provide clarity and protection for taxpayers while allowing for adjustments in response to changes in the law.

Statutes affected:
HB 1716: 26-18-401