Arkansas House Bill HB1108

Arkansas 2025 Regular Session

• Introduced: 1/13/25
• Refer: 1/13/25
• Report Pass: 1/21/25
• Engrossed: 1/22/25
• Enrolled: 1/23/25
• Chaptered: 1/27/25
• Passed: 1/27/25

Caption

An Act For The Office Of The Treasurer Of State - Refund Of Local Taxes Appropriation For The 2025-2026 Fiscal Year.

Summary

HB1108 is an annual appropriation bill for the Arkansas Office of the Treasurer of State to refund local sales and use taxes for fiscal year 2025-2026. It provides funding from the Local Sales and Use Tax Trust Fund for two separate refund pools: $1.1 billion for the city share and $990 million for the county share. The bill is framed as a budget measure rather than a policy change, and it authorizes the Treasurer to make these refunds under the existing local tax statutes. The bill also includes standard fiscal controls, requiring compliance with state procurement, accounting, budgetary, revenue stabilization, and salary procedures laws, along with Department of Finance and Administration regulations. It contains a legislative intent section tying expenditures to the budget materials and official legislative records, and an emergency clause making the act effective July 1, 2025 so the Treasurer can continue administering the refund program without interruption.

Impact

HB1108 does not create new taxes or alter the underlying local sales and use tax statutes; instead, it appropriates money to administer refunds already authorized under Arkansas Code sections 26-75-307 and 26-74-307. Its practical effect is to fund the state-level pass-through of local sales tax revenues to cities and counties through the Treasurer of State, ensuring the Local Sales and Use Tax Trust Fund has authority for those disbursements during the 2025-2026 fiscal year. The bill affects the Office of the Treasurer of State, local governments receiving their shares, and the state fiscal system that processes and controls these payments.

Sentiment

The available voting record suggests strong bipartisan support and little controversy. The bill passed the House 100-0 and the Senate 33-0 on third reading, indicating broad agreement that the appropriation is routine and necessary for ongoing state and local finance operations. No committee transcript is available, but the unanimous votes imply the measure was viewed as a standard budget bill rather than a disputed policy proposal.

Contention

There is no recorded substantive opposition in the available materials. Any potential points of concern would likely be limited to the size of the appropriations and the need to ensure compliance with fiscal control laws, but no legislator or committee member is shown raising objections. Because the bill is an appropriation for existing refund mechanisms, the main issue appears to have been administrative continuity rather than policy disagreement.