Bill Drafting Template - Arkansas
Stricken language would be deleted from and underlined language would be added to present law.Act 141 of the Regular Session1State of Arkansas291st General Assembly3Regular Session, 2017As Engrossed:H1/24/17A BillHOUSE BILL 116245By: Representatives C. Fite, Baltz, Barker, Beck, Brown, Burch, Capp, Cavenaugh, Coleman, Drown,6Farrer, K. Ferguson, L. Fite, Fortner, Gazaway, House, Ladyman, Leding, Lowery, McCollum, G.7McGill, D. Meeks, Nicks, Pilkington, Rye, B. Smith, Speaks, Wardlaw, J. Williams, Wing, Womack8By: Senators J. English, Bledsoe, Files, Hester, J. Hutchinson, D. Wallace, E. Williams, L. Eads, T.9Garner, Irvin, B. Johnson, G. Stubblefield, Flippo, J. Hendren10For An Act To Be Entitled1112AN ACT TO AMEND ARKANSAS TAX LAW AND THE USE OF TAX13REVENUES; TO CREATE AN INCOME TAX EXEMPTION FOR14MILITARY RETIREMENT AND SURVIVOR BENEFITS; TO LEVY15INCOME TAX ON UNEMPLOYMENT COMPENSATION BENEFITS; TO16AMEND THE DEFINITIONS OF THE ARKANSAS GROSS RECEIPTS17TAX ACT OF 1941 TO INCLUDE THE DEFINITION OF CANDY18AND SOFT DRINKS; TO IMPOSE THE FULL GROSS RECEIPTS19TAX AND COMPENSATING TAX ON THE SALE OF CANDY AND20SOFT DRINKS; TO LEVY THE FULL GROSS RECEIPTS TAX ON21THE SALE OF SPECIFIED DIGITAL PRODUCTS AND DIGITAL22CODES; TO AMEND THE ARKANSAS SOFT DRINK TAX ACT, AS23AFFIRMED BY REFERRED ACT 1 OF 1994, TO REDUCE THE24RATE OF TAX; TO SUPPLEMENT THE ARKANSAS MEDICAID25PROGRAM TRUST FUND TO OFFSET THE DECREASE IN SOFT26DRINK TAX REVENUES DEPOSITED INTO THE FUND; AND FOR27OTHER PURPOSES.2829Subtitle3031TO AMEND ARKANSAS TAX LAW CONCERNING32INCOME TAX, SALES AND USE TAXES, AND THE33SOFT DRINK TAX; AND TO SUPPLEMENT THE34ARKANSAS MEDICAID PROGRAM TRUST FUND TO35OFFSET DECREASED DEPOSITS FROM TAX36REVENUES.*JLL091*01-12-2017 09:09:20 JLL091
As Engrossed:H1/24/17HB116212BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:34SECTION 1.Arkansas Code § 19-5-402(a), concerning the maximum5allocations of general revenues in a fiscal year, is amended to add an6additional subdivision to read as follows:78(3)(A)For the fiscal year beginning July 1, 2017, two millionnine hundred fifty-four thousand five hundred dollars ( 2,954,500) shall be:910(i)subdivision (a)(1) of this section; and1112(ii)(B)(i)Included and added to the amount distributed insubdivision (a)(1) of this section; and1718For fiscal years beginning on and after July 1, 2018,five million nine hundred nine thousand dollars ( 5,909,000) shall be:1516Distributed by the Treasurer of State inmonthly amounts to the Arkansas Medicaid Program Trust Fund under § 19-5-985.1314Included and added to the amount distributed in(ii)Distributed by the Treasurer of State inmonthly amounts to the Arkansas Medicaid Program Trust Fund under § 19-5-985.19202122SECTION 2.Arkansas Code § 19-5-985(b), concerning the ArkansasMedicaid Program Trust Fund, is amended to read as follows:(b)(1)The fund shall consist of the following:23(A)All revenues derived from taxes levied on soft drinks24sold or offered for sale in Arkansas under the Arkansas Soft Drink Tax Act, §2526-57-901 et seq., there to be used exclusively for the state match of26federal funds participation under the Arkansas Medicaid Program;2728The additional ambulance annual fees stated in § 20-(C)The special revenues specified in §§ 19-6-301(156) and13-212;2930(B)19-6-301(236); and31(D)The amounts collected under §§ 26-57-604 and 26-57-60532above the forecasted level for insurance premium taxes set by the Chief33Fiscal Officer of the State under § 10-3-1404(a)(1)(A); and343536(E)(2)The amount provided for in § 19-5-402(a)(3).If the Arkansas Medicaid Program should be discontinued forany reason, the revenues derived from the soft drink tax levied in the201-12-2017 09:09:20 JLL091
As Engrossed:H1/24/17HB11621Arkansas Soft Drink Tax Act, § 26-57-901 et seq., and the funds described in2subdivision (b)(1)(E) of this section shall be used exclusively to provide3services to Arkansas residents comparable to the services now provided under4the Arkansas Medicaid Program.56SECTION 3.Arkansas Code § 26-51-307 is amended to read as follows:726-51-307.Retirement or disability benefits.8(a)(1)9The first six thousand dollars ( 6,000) of benefits received byany a resident of this state from an individual retirement account or the10first six thousand dollars ( 6,000) of retirement benefits received by any a11resident of this state from public or private employment-related retirement12systems, plans, or programs, regardless of the method of funding for these13systems, plans, or programs, shall be is exempt from the state income tax.14(2)(A)Only individual retirement account benefits received by15an individual retirement account participant after reaching fifty-nine and16one-half (59½) years of age qualify for the exemption.17(B)The only other distributions or withdrawals from an18individual retirement account that qualify for the exemption before the19individual retirement account participant reaches fifty-nine and one-half20(59½) years of age are those made on account of the participant's death or21disability.22(C)All other premature distributions or early23withdrawals, including, but not limited to, without limitation those taken24for medical-related expenses, higher education expenses, or a first-time home25purchase, do not qualify for the exemption.26(b)(1)(A)Except as provided in subdivision (b)(2) of this section and27subsection (e) of this section, the exemption provided for in subsection (a)28of this section for benefits received from an individual retirement account29or from a public or private employment-related retirement system, plan, or30program shall be is the only exemption from the state income tax allowed for31benefits received from an individual retirement account or from any publicly32or privately supported employment-related retirement system, plan, or33program, excepting only benefits received under systems, plans, or programs34which are by federal law exempt from the state income tax.3536(B)No Except as provided in subsection (e) of thissection, a taxpayer shall not receive an exemption greater than six thousand301-12-2017 09:09:20 JLL091
As Engrossed:1H1/24/17HB1162dollars ( 6,000) during any tax year under the provisions of this section.2(2)The provisions of this This section shall does not apply to3retirement or disability benefits received under a plan, system, or fund4described in § 26-51-404(b)(6).5(c)(1)Title 26 U.S.C. § 72, as in effect on January 1, 2009, is the6sole method by which a recipient of benefits from an individual retirement7account or from public or private employment-related retirement systems,8plans, or programs may deduct or recover his or her cost of contribution to9the plan when computing his or her income for state income tax purposes.1011(2)A taxpayer shall not be allowed to deduct or recover anyportion of the taxpayer's cost of contribution to the plan that the taxpayer:12(A)Has once already deducted or recovered; or13(B)Would have been allowed to deduct or recover under any14provision of law or court decision.15(d)(1)An individual who is sixty-five (65) years of age or older and16who does not claim an exemption under subsection (a) of this section shall be17is entitled to an additional state income tax credit of twenty dollars18( 20.00).19202122(2)This credit is in addition to all other credits allowed bylaw.(e)(1)The following are exempt from the income tax imposed under thischapter:23(A)Retirement benefits received by a member of the24uniformed services from any of the uniformed services identified in25subdivision (e)(2) of this section; and26(B)27282930Survivor benefits that are funded by the retirementpay of a member of the uniformed services.(2)As used in this subsection, "member of the uniformedservices" means a retired member of any of the following:(A)The United States Army, the United States Marine31Corps, the United States Navy, the United States Air Force, or the United32States Coast Guard;3334(B)A reserve component of any of the United States ArmedForces listed in subdivision (e)(2)(A) of this section;35(C)The National Guard of any state;36(D)The commissioned regular or reserve corps of the401-12-2017 09:09:20 JLL091
As Engrossed:H1/24/17HB11621United States Public Health Service; or2(E)34The National Oceanic and Atmospheric AdministrationCommissioned Officer Corps.(f)A taxpayer claiming an exemption under subsection (e) of this5section is not eligible for an exemption under subsection (a) of this6section.78910SECTION 4.of "gross income", is amended to add additional subdivisions to read asfollows:1112Arkansas Code § 26-51-404(a)(1), concerning the definition(G)Unemployment compensation benefits paid from federalunemployment funds; and13(H)Unemployment insurance benefits received from14unemployment compensation paid under Title IV of the Social Security Act, 4215U.S.C. § 601 et seq., except for unemployment or sickness payments made16pursuant to 45 U.S.C. § 352, as it existed on January 1, 2017.171819SECTION 5.Arkansas Code § 26-51-404(b)(6)(B), concerning exemptionsfrom the definition of "gross income", is amended to read as follows:20(B)Social Security payments, railroad retirement21benefits, unemployment compensation benefits paid from federal unemployment22trust funds, and unemployment insurance benefits received from the railroad23retirement boards, and unemployment compensation paid under Title IV of the24Social Security Act, 42 U.S.C. § 601 et seq.;2526SECTION 6.Arkansas Code § 26-52-103(12)(B), concerning the27definitions used under the Arkansas Gross Receipts Act of 1941, is amended to28read as follows:2930(B)“Food” and “food ingredients” do not include candy, asoft drink, an alcoholic beverage, tobacco, or a dietary supplement;3132SECTION 7.Arkansas Code § 26-52-103(13), concerning the definitions33to be used under the Arkansas Gross Receipts Act of 1941, § 26-52-101 et34seq., is amended to read as follows:3536(13)(A)“Gross receipts”, “gross proceeds”, or “sales price”means the total amount of consideration, including cash, credit, property,501-12-2017 09:09:20 JLL091
As Engrossed:H1/24/17HB11621and services, for which tangible personal property, specified digital2products, a digital code, or services are sold, leased, or rented, valued in3money, whether received in money or otherwise, without any a deduction for4the following:5(i)6(ii)The seller's cost of the property sold;The cost of materials used, labor or service7cost, interest, any loss, any cost of transportation to the seller, any tax8imposed on the seller, and any other expense of the seller;(iii)9Any A charge by the seller for any service10necessary to complete the sale, other than a delivery charge or an11installation charge;12(iv)Delivery charge;13(v)(a)Installation charge.(b)14Installation charges will shall not be15included in the “gross receipts”, “gross proceeds”, or “sales price” if they16are not a specifically taxable service under this chapter or the Arkansas17Compensating Tax Act of 1949, § 26-53-101 et seq., and the installation18charges have been separately stated on the invoice, billing, or similar19document given to the purchaser; or(vi)20(B)2122Credit for any trade-in.“Gross receipts”, “gross proceeds”, or “sales price”does not include:(i)23A discount including cash, term, or a coup product or code.(B)18“End user” does not include a person who receives by19contract a product transferred electronically for further commercial20broadcast, rebroadcast, transmission, retransmission, licensing, relicensing,21distribution, redistribution, or exhibition of the product, in whole or in22part, to another person or persons;23(31)“Ringtones” means digitized sound files that:24(A)Are downloaded onto a device; and25(B)May be used to alert the customer with respect to a262728communication;(32)(A)“Soft drink” means a nonalcoholic beverage that containsnatural or artificial sweeteners.(B)29“Soft drink” does not include a beverage that contains30milk or milk products, soy, rice, or similar milk substitutes, or that is31greater than fifty percent (50%) of vegetable or fruit juice by volume;32(33)“Specified digital products” means the following when33transferred electronically:34(A)Digital audio works;35(B)Digital audio-visual works; and36(C)Digital books; and801-12-2017 09:09:20 JLL091
As Engrossed:(34)12H1/24/17HB1162“Transferred electronically” means obtained by thepurchaser by means other than tangible storage media.3456SECTION 11.Arkansas Code § 26-52-110(b), concerning sellers andaffiliated persons, is amended to read as follows:(b)A seller is presumed to be engaged in the business of selling7tangible personal property, specified digital products, a digital code, or8taxable services for use in the state if an affiliated person is subject to9the sales and use tax jurisdiction of the state and the:(1)10Seller sells a similar line of products as the affiliated11person and sells the products under the same business name or a similar12business name;(2)13Affiliated person uses its in-state employees or in-state14facilities to advertise, promote, or facilitate sales by the seller to15consumers;(3)16Affiliated person maintains an office, distribution17facility, warehouse or storage place, or similar place of business to18facilitate the delivery of property, specified digital products, a digital19code, or services sold by the seller to the seller's business;(4)20Affiliated person uses trademarks, service marks, or trade21names in the state that are the same or substantially similar to those used22by the seller; or(5)2324Affiliated person delivers, installs, assembles, or performsmaintenance services for the seller's purchasers within the state.25262728SECTION 12.Arkansas Code § 26-52-110(d), concerning sellers andaffiliated persons, is amended to read as follows:(d)(1)If there is not an affiliated person with respect to a seller29in the state, the seller is presumed to be engaged in the business of selling30tangible personal property, specified digital products, a digital code, or31taxable services for use in the state if the seller enters into an agreement32with one (1) or more residents of the state under which the residents, for a33commission or other consideration, directly or indirectly refer potential34purchasers, whether by a link on an Internet website or otherwise, to the35seller.36(2)However, subdivision (d)(1) of this section applies only if901-12-2017 09:09:20 JLL091
As Engrossed:H1/24/17HB11621the cumulative gross receipts from sales by the seller to purchasers in the2state who are referred to the seller by all residents according to the type3of agreement described in subdivision (d)(1) of this section exceed ten4thousand dollars ( 10,000) during the preceding twelve (12) months.56789SECTION 13.Arkansas Code § 26-52-201(e), concerning the permitrequired to transact business in the state, is amended to read as follows:(e)The director is authorized to establish types and classificationsof Arkansas gross receipts tax permits, including, not by without limitation,10special permits for taxpayers whose principal line of business does not11include the retail selling of tangible personal property, specified digital12products, or a digital code or the performing of taxable services.1314SECTION 14.Arkansas Code § 26-52-210(a)(2), concerning the automatic15expiration of the permit required to transact business in the state, is16amended to read as follows:17(2)This section shall does not apply to a permit that is issued18pursuant to under § 26-52-201(e) to a taxpayer whose principal line of19business does not include the retail selling of tangible personal property,20specified digital products, or a digital code or the performing of taxable21services.2223SECTION 15.Arkansas Code § 26-52-301(1), concerning the levy of the24gross receipts tax on sales of enumerated items and services, is amended to25read as follows:26(1)The following items:27(A)Tangible personal property;28(B)Specified digital products sold:29(i)30(ii)To a purchaser who is an end user; andWith the right of permanent use or less than31permanent use granted by the seller regardless of whether the use is32conditioned on continued payment by the purchaser; and(C)33Digital codes;343536SECTION 16.Arkansas Code § 26-52-301(3)(B)(viii)(b), concerning thegross receipts tax levied on certain sales, is amended to read as follows:1001-12-2017 09:09:20 JLL091
As Engrossed:H1/24/17HB1162(b)1A contractor is deemed to be a consumer or2user of all tangible personal property, specified digital products, or3digital codes used or consumed by the contractor in providing the nontaxable4services, in the same manner as when performing any other contract.56SECTION 17.726-52-302.8(a)(1)9Arkansas Code § 26-52-302 is amended to read as follows:Additional taxes levied.In addition to the excise tax levied upon the gross proceeds orgross receipts derived from all sales by this chapter, except for food and10food ingredients that are taxed under § 26-52-317, there is levied an excise11tax of one percent (1%) upon all taxable sales of property, specified digital12products, digital codes, and services subject to the tax levied in this13chapter.(2)14This tax shall be collected, reported, and paid in the same15manner and at the same time as is prescribed by law for the collection,16reporting, and payment of all other Arkansas gross receipts taxes.(3)17In computing gross receipts or gross proceeds as defined in18§ 26-52-103, a deduction shall be allowed for bad debts resulting from the19sale of tangible personal property.20(b)(1)In addition to the excise tax levied upon the gross proceeds or21gross receipts derived from all sales by this chapter, except for food and22food ingredients that are taxed under § 26-52-317, there is hereby levied an23excise tax of one-half of one percent (0.5%) upon all taxable sales of24property, specified digital products, digital codes, and services subject to25the tax levied in this chapter.(2)26This tax shall be collected, reported, and paid in the same27manner and at the same time as is prescribed by law for the collection,28reporting, and payment of all other Arkansas gross receipts taxes.(3)29However, in computing gross receipts or gross proceeds as30defined in § 26-52-103, a deduction shall be allowed for bad debts resulting31from the sale of tangible personal property.32(c)(1)Except for food and food ingredients that are taxed under § 26-3352-317, there is levied an additional excise tax of one-half of one percent34(0.5%) upon all taxable sales of property, specified digital products,35digital codes, and services subject to the tax levied by this chapter.36(2)The tax shall be collected, reported, and paid in the same1101-12-2017 09:09:20 JLL091
As Engrossed:H1/24/17HB11621manner and at the same time as is prescribed by this chapter, for the2collection, reporting, and payment of Arkansas gross receipts taxes.3(d)(1)Except for food and food ingredients that are taxed under § 26-452-317, there is levied an additional excise tax of seven-eighths of one5percent (0.875%) upon all taxable sales of property, specified digital6products, digital codes, and services subject to the tax levied by this7chapter.(2)8910The tax shall be collected, reported, and paid in the samemanner and at the same time as prescribed by this chapter, for thecollection, reporting, and payment of Arkansas gross receipts taxes.1112SECTION 18.Arkansas Code § 26-52-305 is amended to read as follows:1326-52-305.14Sales of tangible personal property, specified digital products, aFinancial institutions.15digital code, and services to financial institutions shall be are subject to16the Arkansas gross receipts tax levied in this chapter the same as such sales17to other business corporations.18192021SECTION 19.Arkansas Code § 26-52-307(a)(1), concerning contractors asconsumer users, is amended to read as follows:(a)(1)Sales of services, specified digital products, digital codes,22and tangible personal property, including materials, supplies, and equipment,23made to contractors who use them in the performance of any a contract are24declared to be sales to consumers or users and not sales for resale.2526SECTION 20.Arkansas Code § 26-52-315(e)(2), concerning the definition27of “ancillary service” to be used regarding the sales tax on28telecommunications and related services, is amended to read as follows:29(2)(A)“Ancillary service” means a service that is associated30with or incidental to the provision of a telecommunications service,31including without limitation detailed telecommunications billing, directory32assistance, vertical service, and voice mail services;.(B)3334“Ancillary service” does not include specified digitalproducts or a digital code;3536SECTION 21.Arkansas Code § 26-52-315(e)(19)(C), concerning items1201-12-2017 09:09:20 JLL091
As Engrossed:H1/24/17HB11621excluded from the definition of “telecommunications service” to be used2regarding the sales tax on telecommunications and related services, is3amended to read as follows:(C)4“Telecommunications service” does not include:(i)5Data processing and information services that6allow data to be generated, acquired, stored, processed, or retrieved and7delivered by an electronic transmission to a purchaser when the purchaser’s8primary purpose for the underlying transaction is the processed data or9information;(ii)1011equipment on a customer’s premises;12(iii)13(iv)14Tangible personal property;Advertising, including but not limited towithout limitation directory advertising;(v)1516Installation or maintenance of wiring orBilling and collection services provided tothird parties;17(vi)Internet access service;18(vii)(a)Radio and television audio and video19programming services, regardless of the medium, including the furnishing of20transmission, conveyance, and routing of the services by the programming21service provider.(b)22Radio and television audio and video23programming services shall include but not be limited to, including without24limitation cable service as defined in 47 U.S.C. § 522(6), as in effect on25January 1, 2007, and audio and video programming services delivered by26commercial mobile radio service providers, as defined in 47 C.F.R. § 20.3, as27in effect on January 1, 2007;28(viii)29(ix)Ancillary services; orA digital product delivered electronically,30including but not limited to without limitation software, music, video,31reading material, or a ring tone;32(x)33(xi)Specified digital products; orA digital code;343536SECTION 22.Arkansas Code § 26-52-401(1) and (2), concerning sales taxexemptions for various products and services, are amended to read as follows:1301-12-2017 09:09:20 JLL091
As Engrossed:H1/24/17(1)1HB1162The gross receipts or gross proceeds derived from the sale2of tangible personal property, specified digital products, a digital code, or3services by churches, except when the organizations may be engaged in4business for profit;(2)5The gross receipts or gross proceeds derived from the sale6of tangible personal property, specified digital products, a digital code, or7service by charitable organizations, except when the organizations may be8engaged in business for profit;91011SECTION 23.Arkansas Code § 26-52-401(7)-(10), concerning sales taxexemptions for various products and services, are amended to read as follows:(7)12Gross receipts or gross proceeds derived from the sale of13specified digital products, a digital code, tangible personal property,14including but not limited to without limitation office supplies; office15equipment; program items at camp such as bows, arrows, and rope; rifles for16rifle range and other rifle items; food, food ingredients, or prepared food17for camp; lumber and supplies used in camp maintenance; camp equipment; first18aid supplies for camp; the leasing of cars used in promoting scouting; or19services to the Boy Scouts of America chartered by the United States Congress20in 1916 or the Girl Scouts of the United States of America chartered by the21United States Congress in 1950 or any of the scout councils in the State of22Arkansas;23(8)Gross receipts or gross proceeds derived from sales of24tangible personal property, specified digital products, a digital code, or25services to the Boys & Girls Club of America;26(9)Gross receipts or gross proceeds derived from sales of27tangible personal property, specified digital products, a digital code, or28services to the Poets’ Roundtable of Arkansas;29(10)Gross receipts or gross proceeds derived from sales of30tangible personal property, specified digital products, a digital code, or31services to 4-H clubs and FFA clubs in this state, to the Arkansas 4-H32Foundation, the Arkansas Future Farmers of America Foundation, and the33Arkansas Future Farmers of America Association;343536SECTION 24.Arkansas Code § 26-52-401(21)(A), concerning sales taxexemptions for various products and services, is amended to read as follows:1401-12-2017 09:09:20 JLL091
As Engrossed:H1/24/17(21)(A)1HB1162Gross receipts or gross proceeds derived from the sale2of any tangible personal property, specified digital products, a digital3code, or services as specifically provided in this subdivision (21) to any a4hospital or sanitarium operated for charitable and nonprofit purposes or any5a nonprofit organization whose sole purpose is to provide temporary housing6to the family members of patients in a hospital or sanitarium.789SECTION 25.Arkansas Code § 26-52-401(29), concerning sales taxexemptions for various products and services, is amended to read as follows:(29)10Gross receipts or gross proceeds derived from the sale of11any tangible personal property, specified digital products, or a digital code12specifically exempted from taxation by the Arkansas Compensating Tax Act of131949, § 26-53-101 et seq.;141516SEC
27 pay of a member of the uniformed services. 28 (2) As used in this subsection, "member of the uniformed 29 services" means a retired member of any of the following: 30 (A) The United States Army, the United States Marine . 32 consumer that is separately stated on t
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BILL DRAFTING GUIDE 2021 PREFACE The office of the code reviser created this bill drafting guide for the preparation of bills for the W ashington legislature. It consists of four parts: Part I - W orking Procedures provides a short, nontechnical explana-tion for submitting bill drafting requests to the code reviser's office.
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Buried in family cemetery near Searcy, White Co.; Chapter: Little Red River *Eno, Clara, Revolutionary Soldiers Buried in Arkansas, p 53-62. Arkansas History . Arkansas, DAR AR State Historian File. Cousott, Francois Buried Arkansas Co. at or near Arkansas Post; Chapters: Arkansas Post, Grand Prairie Plaque honoring 26 Rev.
A. C. A. means Arkansas Code Annotated. CHIEF means the Chief of the Arkansas Highway Police Division of the Arkansas Highway and Transportation Department. COMMANDER means the Arkansas Highway Police officer in charge of the Arkansas Highway Police Permit Section. COMMISSION means the Arkansas State Highway Commission (ASHC).
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