This bill seeks to amend the corporate franchise tax laws in Arkansas by repealing the Arkansas Corporate Franchise Tax Act of 1979 and instituting a new requirement for corporations to file an annual report. The new section, designated as 4-25-111, defines a corporation to include both domestic and foreign entities while excluding certain organizations such as nonprofit corporations and those exempt from federal income tax. The Secretary of State will provide annual report forms that detail the corporation's condition and status as of the end of the previous fiscal year, with newly formed corporations exempt from filing until the following calendar year. The bill also emphasizes the confidentiality of the information in these reports, with specific exceptions, and mandates that state officials maintain a list of corporations and report relevant changes to the Secretary of State.

Additionally, the bill modifies existing franchise tax regulations by eliminating the fixed fee requirement for corporations without authorized capital stock and replacing it with a tax structure based on the proportion of the corporation's real and personal property value in Arkansas. It establishes a minimum tax of $150 and clarifies tax obligations for corporations in liquidation and those formed under the Uniform Limited Liability Company Act. The bill outlines procedures for filing franchise tax reports, introduces penalties for non-compliance, and allows for potential waivers under certain circumstances. It also removes previous restrictions on corporations and limited liability companies that owe past-due franchise taxes, clarifying definitions related to tax obligations and ensuring that the act applies only to franchise taxes imposed after its effective date, without retroactively affecting past liabilities.

Statutes affected:
HB 1932: 4-27-128(b), 4-27-1601(e), 4-27-1622, 4-20-105(a), 4-27-121(a), 26-54-101, 4-25-111, 4-36-401(a), 4-36-401(b), 4-37-205(a), 4-37-206(a), 4-38-212(f), 19-5-1227(b), 19-6-201(3)