This bill seeks to repeal the Arkansas Corporate Franchise Tax Act of 1979, addressing the burden it places on new and low-profit-margin businesses, particularly during economic downturns. The legislation recognizes that Arkansas is one of only sixteen states imposing a corporate franchise tax based on capital stock rather than revenue or profit, prompting the need for reform. To facilitate this repeal, the bill includes several deletions from existing law, such as the removal of annual franchise tax report requirements for corporations and provisions related to the certificate of existence and good standing.

In addition to repealing the franchise tax, the bill amends the Arkansas Benefit Corporation Act to eliminate references to the annual franchise tax report and outlines the responsibilities of the Secretary of State regarding tax computation and compliance. It establishes guidelines for settling disputes over interest or penalties and allows for waivers under specific circumstances. Furthermore, the bill restricts corporations with past-due franchise taxes from filing documents or creating new entities, while defining "past-due franchise taxes" and detailing the responsibilities of corporate officers regarding tax payments. Overall, the legislation aims to streamline tax compliance and enforcement while providing relief options for financially struggling corporations.

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)