To Amend Laws Concerning The Corporate Franchise Tax; To Repeal The Arkansas Corporate Franchise Tax Act Of 1979; And To Require An Annual Report For Corporations.
HB1932 would substantially reorganize Arkansas law governing corporate franchise taxation and corporate reporting. The bill repeals the Arkansas Corporate Franchise Tax Act of 1979 and replaces its framework with a new annual reporting structure for corporations and certain limited liability companies. It directs the Secretary of State to furnish annual report forms, requires covered entities to file annual reports showing their condition and status, and sets out filing timing, signatures under penalty of perjury, confidentiality rules, and administrative duties for state and local officials who issue business permits or maintain corporate records.
The bill also makes conforming changes throughout the Arkansas Code to replace references to the old franchise tax act with the new annual report provisions. It updates rules for certificates of existence, corporate records, benefit corporations, protected series LLCs, and LLC annual report compliance so that those obligations are tied to the new reporting system. In addition, it repeals the statutory section that treated corporate franchise taxes as general revenue and revises the disposition of collected funds, including a transfer structure that sends revenues first to general revenue up to a stated annual cap and then to the Educational Adequacy Fund.
A major policy change in HB1932 is the elimination of the old franchise tax chapter and its replacement with a more detailed administrative regime. The bill preserves the Secretary of State’s role in collecting reports, tracking corporate status, and handling delinquency, but it also adds new provisions addressing confidentiality, notices, penalties, revocation, reinstatement, and restrictions on filings by entities with past-due franchise taxes. It applies prospectively only to franchise taxes imposed on or after the effective date and does not alter liabilities already due or delinquent.
Because there are no committee transcripts or recorded votes in the provided materials, the overall sentiment cannot be measured from debate or roll-call history. Based on the bill text alone, the measure appears to be presented as a technical and structural overhaul rather than a controversial policy expansion, with an emphasis on replacing outdated law and standardizing reporting requirements. The absence of recorded opposition or support in the supplied context suggests no documented public legislative debate is available here.
The main points of potential contention are likely to involve the repeal of the existing franchise tax act, the new reporting burdens on corporations and LLCs, the confidentiality rules for report information, and the enforcement provisions that restrict filings or new entity formation for those with past-due taxes. Business entities may focus on administrative burden and privacy, while state officials may view the bill as improving compliance, recordkeeping, and revenue administration.
HB1932 would repeal Arkansas Code Title 26, Chapter 54, the Arkansas Corporate Franchise Tax Act of 1979, and replace its operative provisions with a new annual reporting and tax-administration structure centered on the Secretary of State. It would amend multiple code sections to conform references to the new framework, affecting domestic and foreign corporations, LLCs, benefit corporations, and protected series LLCs. The bill also changes how franchise-tax-related revenues are allocated, including a transfer mechanism to general revenue and then to the Educational Adequacy Fund, while preserving liability for taxes already due or delinquent before the act’s effective date.
No committee transcripts or votes were provided, so there is no recorded legislative debate to gauge support or opposition. From the bill text, the measure reads as a broad administrative modernization of corporate tax and reporting law, suggesting a generally procedural rather than ideological posture. The lack of recorded action in the supplied context means sentiment is best characterized as unknown, with no documented floor or committee controversy available.
The likely areas of contention are the repeal of the long-standing franchise tax chapter, the creation of a new annual report regime, and the compliance consequences for delinquent entities. Businesses may object to additional filing requirements, the rule limiting filings by entities with past-due franchise taxes, and the breadth of the Secretary of State’s authority to require information and maintain confidential records. On the other hand, state administrators and proponents may support the bill for improving compliance, clarifying reporting duties, and strengthening enforcement and recordkeeping around corporate status and tax collection.