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Stricken language would be deleted from and underlined language would be added to present law. Act 78 of the Regular Session *JLL102* 01-10-2017 11:39:25 JLL102
State of Arkansas As Engrossed: S1/19/17
1 91st General Assembly A Bill
2 Regular Session, 2017
SENATE BILL 115 3
4 By: Senators J. Hendren, Hester, Bledsoe, E. Cheatham, J. Dismang, L. Eads, J. English, Files, S. 5 Flowers, T. Garner, J. Hutchinson, Irvin, B. Johnson, Rapert, B. Sample, D. Sanders, Teague, D. 6 Wallace, E. Williams 7 By: Representatives Pitsch, Collins, Davis, Dotson 8
9 For An Act To Be Entitled 10 AN ACT TO CREATE THE TAX REFORM AND RELIEF ACT OF 11 2017; TO AMEND THE INCOME TAX RATES APPLICABLE TO 12 INDIVIDUALS, TRUSTS, AND ESTATES; TO CREATE THE 13 ARKANSAS TAX REFORM AND RELIEF LEGISLATIVE TASK 14 FORCE; TO DECLARE AN EMERGENCY; AND FOR OTHER 15 PURPOSES. 16
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18 Subtitle 19 TO CREATE THE TAX REFORM AND RELIEF ACT 20 OF 2017; AND TO DECLARE AN EMERGENCY. 21
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23 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
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SECTION 1. DO NOT CODIFY. This act shall be known and may be cited as 26 the "Tax Reform and Relief Act of 2017". 27
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SECTION 2. Arkansas Code § 26-51-201(a)(7) and (8), concerning the 29 income tax imposed on individuals, trusts, and estates, is amended to read as 30 follows: 31
(7) For tax years beginning on and after January 1, 2016, every 32 Every resident, individual, trust, or estate having net income greater than 33 or equal to twenty-one thousand dollars ($21,000), but less than or equal to 34 seventy-five thousand dollars ($75,000), shall determine the amount of income 35 tax due under this subsection in accordance with the table set forth below: 36
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From Less Than or Equal To
Rate 1
$0
$4,299
0.9% 0.75% 2
$4,300 $8,399
2.5% 3
$8,400 $12,599
3.5% 4
$12,600 $20,999
4.5% 5
$21,000 $35,099
5% 6
$35,100 $75,000
6% 7
(8) For tax years beginning on and after January 1, 2015, every 8 Every resident, individual, trust, or estate having net income of less than 9 twenty-one thousand dollars ($21,000) shall determine the amount of income 10 tax due under this subsection in accordance with the table set forth below: 11
From Less Than or Equal To
Rate 12
$0
$4,299
0.9% 0% 13
$4,300 $8,399
2.4% 2% 14
$8,400 $12,599
3.4% 3% 15
$12,600 $20,999
4.4% 3.4% 16
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SECTION 3. TEMPORARY LANGUAGE. DO NOT CODIFY. Arkansas Tax Reform 18 and Relief Legislative Task Force – Creation – Membership – Duties. 19
(a) There is created the Arkansas Tax Reform and Relief Legislative 20 Task Force. 21
(b)(1) The task force shall consist of the following sixteen (16) 22 members of the General Assembly: 23
(A) The President Pro Tempore of the Senate, or his or her 24 designee who is a member of the Senate; 25
(B) Five (5) members of the Senate appointed by the 26 President Pro Tempore of the Senate; 27
(C) The Senate Majority Leader, or his or her designee who 28 is a member of the Senate; 29
(D) The Senate Minority Leader, or his or her designee who 30 is a member of the Senate; 31
(E) The Speaker of the House of Representatives, or his or 32 her designee who is a member of the House of Representatives; 33
(F) Five (5) members of the House of Representatives 34 appointed by the Speaker of the House of Representatives; 35
(G) The House Majority Leader, or his or her designee who 36
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is a member of the House of Representatives; and 1
(H) The House Minority Leader, or his or her designee who 2 is a member of the House of Representatives. 3
(2) If a vacancy occurs on the task force, the vacancy shall be 4 filled by the same process as the original appointment. 5
(3) The members of the task force shall be paid per diem and 6 mileage as authorized by law for attendance at meetings of interim committees 7 of the General Assembly. 8
(c)(1) The Speaker of the House of Representatives shall call the 9 first meeting of the task force within thirty (30) days of sine die 10 adjournment of the 2017 regular session. 11
(2) The Speaker of the House of Representatives shall designate 12 a member of the task force to serve as chair of the first meeting of the task 13 force. 14
(3) At the first meeting of the task force, the members of the 15 task force shall elect from its membership a chair or co-chairs and other 16 officers as needed for the transaction of its business. 17
(4)(A) The task force shall conduct its meetings in Pulaski 18 County at the State Capitol or another site with teleconferencing 19 capabilities. 20
(B) Meetings of the task force shall be held at least one 21 (1) time every two (2) months but may occur more often at the call of the 22 chair. 23
(5) The task force shall establish rules and procedures for 24 conducting its business. 25
(6)(A) A majority of the members of the task force shall 26 constitute a quorum for transacting business of the task force. 27
(B) An affirmative vote of a majority of a quorum present 28 shall be required for the passage of a motion or other task force action. 29
(7) The Bureau of Legislative Research shall provide staff for 30 the task force. 31
(d)(1) The purpose of the task force is to examine and identify areas 32 of potential reform within the tax laws of the State of Arkansas and to 33 recommend legislation to the General Assembly for consideration during the 34 2019 regular session in order to: 35
(A) Modernize and simplify the Arkansas tax code; 36
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(B) Make the Arkansas tax laws competitive with other 1 states in order to attract businesses to the state; 2
(C) Create jobs for Arkansans; and 3
(D) Ensure fairness to all individuals and entities 4 impacted by the tax laws of the State of Arkansas. 5
(2) If the task force determines it is necessary, it may 6 contract with one (1) or more outside consultants to assist the task force 7 with its study. 8
(3)(A) On or before December 1, 2017, the task force shall file 9 with the Governor, the Speaker of the House of Representatives, and the 10 President Pro Tempore of the Senate a written preliminary report of the task 11 force’s activities, findings, and recommendations. 12
(B) The task force shall file with the Governor, the 13 Speaker of the House of Representatives, and the President Pro Tempore of the 14 Senate a final written report on or before September 1, 2018. 15
(e) The task force shall expire on December 31, 2018. 16
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SECTION 4. EFFECTIVE DATE. Section 2 of this act is effective for tax 18 years beginning on and after January 1, 2019. 19
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SECTION 5. EMERGENCY CLAUSE. It is found and determined by the 21 General Assembly of the State of Arkansas that income tax rates for Arkansas 22 residents are too high in comparison to the income tax rates in surrounding 23 states; that these burdensome income tax rates prevent Arkansas from being 24 competitive with surrounding states in the region; and that this act is 25 immediately necessary because it is in the best interests of the state to 26 increase Arkansas's ability to compete in the region by dedicating as much 27 funding as is economically possible and prudent to relieve the income tax 28 burden suffered by lower income taxpayers in the state. Therefore, an 29 emergency is declared to exist, and this act being immediately necessary for 30 the preservation of the public peace, health, and safety shall become 31 effective on: 32
(1) The date of its approval by the Governor; 33
(2) If the bill is neither approved nor vetoed by the Governor, 34 the expiration of the period of time during which the Governor may veto the 35 bill; or 36
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(3) If the bill is vetoed by the Governor and the veto is 1 overridden, the date the last house overrides the veto. 2
3 /s/J. Hendren 4
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6 APPROVED: 02/01/2017 7
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