TO ADD THE DEPARTMENT OF THE MILITARY TO THE LIST OF CLAIMANT AGENCIES FOR PURPOSES OF THE SETOFF AGAINST STATE TAX REFUNDS; AND TO AMEND THE DEFINITION OF "DEBT" FOR PURPOSES OF THE SETOFF AGAINST STATE TAX REFUNDS.

Fiscal Impact Statement Bill: HB1497 Bill Subtitle: TO ADD THE DEPARTMENT OF THE MILITARY TO THE LIST OF CLAIMANT AGENCIES FOR PURPOSES OF THE SETOFF AGAINST STATE TAX REFUNDS. --------------------------------------------------------------------------------------------------------------------------------------- Sponsors: Reps. Painter and Ray Sen. Crowell Basic Change: HB1497 amends § 26-36-303(1)(A) to add the Department of the Military as a claimant agency who can offset a taxpayer’s state income tax refund to satisfy a debt. Fiscal Impact: None. Taxpayer Impact: A taxpayer owing unpaid fines to the Department of the Military under § 12-64-301 and §§ 12-64-403 – 12-64-405 may have his or her state income tax refund offset to satisfy the debt. Resources Required: Computer programs, tax forms, and instructions will need to be updated. Programming costs for the Arkansas Integrated Revenue System (AIRS) are estimated to be $4,000. Time Required: Adequate time is provided for implementation. Procedural Changes: Department employees will need to be educated as well as the tax community. Instruction manuals would need to be updated to add another claimant agency to the setoff program. O

Fiscal Impact Statement Bill: HB1497 Amendment Number: H1 Bill Subtitle: TO ADD THE DEPARTMENT OF THE MILITARY TO THE LIST OF CLAIMANT AGENCIES FOR PURPOSES OF THE SETOFF AGAINST STATE TAX REFUNDS. --------------------------------------------------------------------------------------------------------------------------------------- Sponsors: Reps. Painter and Ray Sen. Crowell Basic Change: House Amendment No. 1 --- HB1497-H1 amends the bill, as originally introduced, to: • Add "The Department of the Military" to the definition of "claimant agencies" in § 26-36-303(1)(A); and • Add the fines imposed under § 12-64-301 and §§ 12-64-403 – 405 to the definition of "debt" in § 26-36-303(2). Original Bill --- HB1497 amends § 26-36-303(1)(A) to add the Department of the Military as a claimant agency who can offset a taxpayer’s state income tax refund to satisfy a debt. Fiscal Impact: None. Taxpayer Impact: A taxpayer owing unpaid fines to the Department of the Military under § 12-64-301 and §§ 12-64-403 – 12-64-405 may have his or her state income tax refund offset to satisfy the debt. Resources Required: Computer programs, tax forms, and instructions will need to be updated. Programming c