TO REPEAL THE ARKANSAS CORPORATE FRANCHISE TAX ACT OF 1979; AND TO MAKE CONFORMING CHANGES.

Fiscal Impact Statement Bill: HB1750 Bill Subtitle: TO REPEAL THE ARKANSAS CORPORATE FRANCHISE TAX ACT OF 1979; AND TO MAKE CONFORMING CHANGES. --------------------------------------------------------------------------------------------------------------------------------------- Sponsors: Rep. Cavenaugh and Sen. Crowell Basic Change: HB1750 repeals the Arkansas Corporate Franchise Tax Act of 1979. The Act requires every corporation and limited liability company to file an annual franchise tax return with the Secretary of State and pay an annual franchise tax. The amount of tax due varies based on the type of entity filing the return and factors such as the amount of the corporation's outstanding capital stock. A minimum annual tax payment of $150 is required for corporations and limited liability corporations and a $300 minimum tax payment is required for various types of insurance companies. Under current law, the first $8,000,000 of franchise tax collections are deposited into state general revenue and the remaining franchise tax collections are deposited into the Educational Adequacy Fund. Fiscal Impact: FY2026 - $8M General Revenue Reduction $28M Education Adequacy Fund Reducti