Revenue & Tax Committee advances package of tax‑related bills including sales‑tax exemptions, ABLE changes, and credit adjustments
April 19, 2021 | REVENUE & TAX - SENATE, Senate, Committees, Legislative, Arkansas
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The Senate Revenue & Tax Committee considered a sequence of bills and amendments and moved multiple measures forward by voice vote. Key actions included:
- SB 336 (Mark Johnson): Adopted an amendment narrowing a sales/use tax exemption to collector currency that is or was legal tender; DFA estimated FY22 loss ≈ $766,000 and a full‑year estimate ≈ $1.1 million; the bill passed as amended.
- House Bill 1023 (Rep. Lowery): Clarified that PTOs/PTAs and similar school fundraising organizations are exempt from sales tax on fundraising sales; sponsor said fiscal impact is minimal and the committee passed the bill.
- House Bill 1684 (Julie Mayberry and Grant Wallace): Aligned state ABLE account rules with 529 plans (cleanup language, four‑year carryforward, payroll deduction option for state employees); sponsors reported $1.8 million in assets under management, ~700 accounts and average balances; the committee passed the bill.
- House Bill 1314 (Sen. Ricky Hill): Modernized the Water Conservation and Development Incentives Act—roughly a 33% increase in certain tax credits, extended claim period to 15 years, and doubled the per‑year cap from $10 million to $20 million; sponsor said it targets groundwater conservation and Delta economic activity; the bill passed.
- SB 1469 (Sen. Dismang): Authorized BLR to obtain redacted data from DFA and contract consultants to provide a second review of revenue impacts; sponsor emphasized redaction and that DFA retains independence; the bill passed.
- SB 1513: Created a tax credit for individuals spending at least 1,000 hours on cold‑case investigations (cap $3,500; pro rata allowed); estimated FY revenue impact ~$25,000; the bill passed.
- SB 1555: Increased an existing revitalization credit cap from $4 million to $8 million and extended the sunset from 2027 to 2037; the bill passed.
- SB 1596 (Sen. Dismang): Clarified that specialty/job printers should qualify for manufacturing exemptions for purchases and machinery when producing items for resale, addressing a legal distinction stemming from the Noritsu Supreme Court case; the committee passed the bill and adjourned.
Most items advanced by voice vote with limited recorded tallies; DFA and witnesses provided fiscal context where available. The committee adjourned after completing its agenda.
- SB 336 (Mark Johnson): Adopted an amendment narrowing a sales/use tax exemption to collector currency that is or was legal tender; DFA estimated FY22 loss ≈ $766,000 and a full‑year estimate ≈ $1.1 million; the bill passed as amended.
- House Bill 1023 (Rep. Lowery): Clarified that PTOs/PTAs and similar school fundraising organizations are exempt from sales tax on fundraising sales; sponsor said fiscal impact is minimal and the committee passed the bill.
- House Bill 1684 (Julie Mayberry and Grant Wallace): Aligned state ABLE account rules with 529 plans (cleanup language, four‑year carryforward, payroll deduction option for state employees); sponsors reported $1.8 million in assets under management, ~700 accounts and average balances; the committee passed the bill.
- House Bill 1314 (Sen. Ricky Hill): Modernized the Water Conservation and Development Incentives Act—roughly a 33% increase in certain tax credits, extended claim period to 15 years, and doubled the per‑year cap from $10 million to $20 million; sponsor said it targets groundwater conservation and Delta economic activity; the bill passed.
- SB 1469 (Sen. Dismang): Authorized BLR to obtain redacted data from DFA and contract consultants to provide a second review of revenue impacts; sponsor emphasized redaction and that DFA retains independence; the bill passed.
- SB 1513: Created a tax credit for individuals spending at least 1,000 hours on cold‑case investigations (cap $3,500; pro rata allowed); estimated FY revenue impact ~$25,000; the bill passed.
- SB 1555: Increased an existing revitalization credit cap from $4 million to $8 million and extended the sunset from 2027 to 2037; the bill passed.
- SB 1596 (Sen. Dismang): Clarified that specialty/job printers should qualify for manufacturing exemptions for purchases and machinery when producing items for resale, addressing a legal distinction stemming from the Noritsu Supreme Court case; the committee passed the bill and adjourned.
Most items advanced by voice vote with limited recorded tallies; DFA and witnesses provided fiscal context where available. The committee adjourned after completing its agenda.
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