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Arkansas committee hears bill to repeal $50 sales-tax permit fee; no vote taken
Summary
Rep. Underwood presented HB 1203 to repeal the one-time $50 sales-tax permit fee, saying it poses a barrier for small businesses. State Department of Finance and Administration witnesses said the fee produces about $432,000 a year and supports revenue-division operations. The committee held discussion only and did not vote.
Representative Underwood introduced House Bill 1203 to eliminate the one-time $50 fee charged when a business applies for a state sales-tax permit, saying the fee discourages small entrepreneurs from registering and remitting taxes.
Underwood, state representative for District 16, said the measure would remove a practical barrier for small vendors and help encourage voluntary compliance. "Essentially, what this bill does is it eliminates the $50 fee, for the tax registration fee that you for applying for your sales tax permit," Underwood said. She described a small family-run linen-rental side business as an example of the kind of operation she said would benefit from…
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