This bill amends the Arkansas Tax Procedure Act to enhance the confidentiality and accessibility of tax records provided to city and county governments by the Department of Finance and Administration. It specifies that upon request, the Department must provide a report that includes a list of vendors holding permits under the Arkansas Gross Receipts Act and the Arkansas Compensating Tax Act. The requests can now be made electronically at any time by officials from the respective local governments, rather than being restricted to a written request before August 1 of the calendar year. Additionally, the report will include the vendors' names and their North American Industry Classification System codes.

The bill also establishes that the information received by local governments will remain confidential and cannot be disclosed except as permitted by the law. It requires that local governments register for an account with the Arkansas Taxpayer Access Point to receive the reports. Furthermore, the Department is prohibited from discussing the details of the reports with the requesting governments or third parties. The new provisions will take effect on January 1, 2026.

Statutes affected:
HB 1971: 26-18-303(h)