Arkansas SB233: TO AMEND THE INCOME TAX LAWS RELATING TO CERTAIN TRUSTS; TO PRESERVE CERTAIN TRUST ASSETS; AND TO EXEMPT CERTAIN TRUSTS FROM INCOME TAX

What the bill says

An act to be entitled an act to amend the income tax laws relating to certain trusts; to preserve certain trust assets; to exempt certain trusts from income tax; and for other purposes. subtitle to amend the income tax laws relating to certain trusts; to preserve certain trust assets; and to exempt certain trusts from income tax.

From the introduced text:

An Act To Be Entitled AN ACT TO AMEND THE INCOME TAX LAWS RELATING TO CERTAIN TRUSTS; TO PRESERVE CERTAIN TRUST ASSETS; TO EXEMPT CERTAIN TRUSTS FROM INCOME TAX; AND FOR OTHER PURPOSES. Subtitle TO AMEND THE INCOME TAX LAWS RELATING TO CERTAIN TRUSTS; TO PRESERVE CERTAIN TRUST ASSETS; AND TO EXEMPT CERTAIN TRUSTS FROM INCOME TAX. BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: SECTION 1. DO NOT CODIFY. Legislative intent. It is the intent of the General Assembly to: (1) Reform Arkansas trust tax law to increase the state's competitiveness in the financial services sector by attracting out-of-state trust assets for administration by Arkansas trustees; (2) Recognize that Arkansas citizens currently establish trusts in foreign states to avoid trust-level taxation; (3) Recognize that foreign states are reaping the benefit that comes with the management and administration of trust assets in those states; and (4) Amend the law to remove the incentive for Arkansas residents to set up nongrantor trusts in foreign states that will encourage Arkansans to keep trust assets in state where Arkansas trustees will manage and administer the trust assets. *JLL182* 02/13/2025 3:36:48 PM JLL182 SB233 SECTION 2. Arkansas Code Title 26, Chapter 51, Subchapter 3, is amended to add an additional section to read as follows: 26-51-317. Nongrantor trusts. There is …

Read the full official text

Sponsors

• Clint Penzo (R, 31) · primary sponsor
• Robin Lundstrum (R, 18)
• John Maddox (R, 86)

Latest actions

1. May 5, 2025: Died in Senate Committee at Sine Die adjournment.
2. February 13, 2025: Read first time, rules suspended, read second time, referred to REVENUE & TAX - SENATE
3. February 13, 2025: Filed

Common questions

What is SB233?

SB233 is a bill in the Arkansas Legislature (95th General Assembly (2025 Regular)): TO AMEND THE INCOME TAX LAWS RELATING TO CERTAIN TRUSTS; TO PRESERVE CERTAIN TRUST ASSETS; AND TO EXEMPT CERTAIN TRUSTS FROM INCOME TAX.

What does SB233 do?

In its own words: An act to be entitled an act to amend the income tax laws relating to certain trusts; to preserve certain trust assets; to exempt certain trusts from income tax; and for other purposes. subtitle to amend the income tax laws relating to certain trusts; to preserve certain trust assets; and to exempt certain trusts from income tax.

What is the status of SB233?

Failed as of May 5, 2025. Latest action: Died in Senate Committee at Sine Die adjournment. (May 5, 2025).

Who sponsored SB233?

Clint Penzo (R, 31), with 2 co-sponsors.

Where is the official record for SB233?

On the Arkansas Legislature website: https://www.arkleg.state.ar.us/Bills/Detail?ddBienniumSession=2025%2F2025R&measureno=SB233