This 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 related to the same item of tangible personal property and received a favorable decision confirming the exemption under the Arkansas Gross Receipts Act or the Arkansas Compensating Tax Act. This protection applies only if the taxpayer continues to use the property in the same manner as previously determined to be exempt.

However, the bill also includes a caveat that allows for the assessment of taxes if there is a material change in law regarding the qualifications for the exemption that was the basis of the favorable decision. Such changes could arise from new laws enacted by the General Assembly, amendments or repeals of existing laws, newly promulgated rules, or subsequent decisions by the Supreme Court. This legislation aims to provide clarity and protection for taxpayers while allowing for adjustments in response to changes in tax law.

Statutes affected:
HB 1716: 26-18-401
Act 498: 26-18-401