This bill proposes significant changes to the corporate franchise tax laws in Arkansas by repealing the Arkansas Corporate Franchise Tax Act of 1979 and introducing a new requirement for corporations to file an annual report with the Secretary of State. The bill defines "corporation" to include various entities, such as limited liability companies, while excluding nonprofit corporations and certain tax-exempt organizations. The Secretary of State will provide annual report forms and ensure the confidentiality of submitted information, with specific exceptions. Additionally, the bill makes conforming changes throughout existing laws to replace references to the now-repealed franchise tax with the new annual report requirements, including the removal of the term "franchise tax" from multiple provisions.

Furthermore, the bill outlines the penalties for non-compliance with filing and remittance requirements, including a $25 penalty plus interest on overdue taxes, and establishes a process for reinstating corporations whose charters have been revoked due to non-payment of taxes. It mandates that all taxes and penalties collected be deposited into the State Treasury, with allocations to the General Revenue Fund and the Educational Adequacy Fund. The bill also clarifies that it applies only to franchise taxes imposed on or after the effective date of the act, ensuring that past liabilities are not retroactively affected. Overall, the bill aims to streamline corporate reporting processes, eliminate outdated tax regulations, and provide relief options for corporations facing financial difficulties.

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)