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Committee hears bill to ease tax filings for remote and mobile workers; no vote taken
Summary
Representative David Ray presented HB 1116 to create filing thresholds and allow reciprocity agreements to simplify tax compliance for remote or mobile workers; the committee heard testimony and questions but did not take a vote.
Representative David Ray (R-District 69) introduced House Bill 1116 as a measure to reduce state income-tax compliance burdens for remote, hybrid and mobile workers who conduct short-term work in Arkansas.
Ray said the bill would do three things: establish a filing threshold, create an employer-withholding threshold (set in the bill as a 15-day threshold for withholding), and authorize the Department of Finance and Administration (DFA) to enter reciprocity agreements with other states so commuters pay income tax only to their state of residence when agreements exist.
Ray and Andrew Wilford of the National Taxpayers Union Foundation cited national indices showing Arkansas ranks poorly on measures of tax treatment for mobile workers and said thresholds and reciprocity would improve competitiveness and reduce compliance costs. Committee members asked technical questions about how the bill would interact with existing wage-based thresholds (such as a $2,500 income floor), whether day- or wage-based thresholds were preferable, and whether reciprocity would simplify filings for Arkansans who work out of state.
DFA members were present but did not offer detailed opposition; Representative Ray acknowledged DFA’s technical comments and said he would be open to amendments. The committee did not take a vote on HB 1116 during the hearing; the presenter closed and asked for cosponsors.
Quotes in this article are from presenters recorded in the hearing and are attributed to the speakers who made them.
