The bill seeks to repeal the Arkansas Corporate Franchise Tax Act of 1979, citing the tax's burdensome nature on businesses, as it is levied on capital stock regardless of profitability. It highlights that only 16 states impose a similar tax, indicating that Arkansas's approach may not align with national trends. Key provisions include the repeal of various sections of the Arkansas Code related to the corporate franchise tax, which eliminates the requirement for corporations to file annual franchise tax reports and the associated penalties for non-compliance. The bill also amends sections concerning benefit corporations to remove references to the franchise tax, further supporting the repeal.

Additionally, the bill introduces significant amendments to existing laws governing corporate franchise taxes, including the removal of provisions that classified certain information as confidential. It outlines the Secretary of State's responsibilities regarding tax computation and penalties, establishes guidelines for resolving disputes, and allows for the waiver of penalties under specific circumstances. Corporations with past-due franchise taxes will face restrictions on filing documents and creating new entities, and they must identify individuals responsible for tax payments in their articles of incorporation. The Secretary of State is empowered to remove individuals fraudulently listed as officers or directors from liability for past-due taxes, provided proper documentation is submitted. Overall, the bill aims to streamline tax compliance while ensuring corporate accountability.

Statutes affected:
Old version HB1750 V2 - 3-17-2025 11:42 AM: 4-27-128(b), 4-27-1601(e), 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, 03-17-2025, 4-38-212(f), 19-5-1227(b), 19-6-201(3)
Old version HB1750 Original - 3-12-2025 09:47 AM: 4-27-128(b), 4-27-1601(e), 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)
HB 1750: 4-27-128(b), 4-27-1601(e), 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)