§ 15-4-2711 - Administration.
15-4-2711. Administration.
(a) A person claiming credit under the provisions of 15-4-2706(c) is a "taxpayer" within the meaning of 26-18-104(16) and shall be subject to all applicable provisions of that section.
(b) Administration of the provisions of 15-4-2706(c) shall be under the Arkansas Tax Procedure Act, 26-18-101 et seq.
(c) (1) All claims for sales and use tax refunds under 15-4-2706(d) and (e) shall be filed annually with the Revenue Division of the Department of Finance and Administration within three (3) years from the date of the qualified purchase or purchases.
(2) Claims filed after three (3) years from the date of the qualified purchase or purchases shall be disallowed.
(d) (1) The time limitation for 15-4-2706(d) and (e) for filing claims shall be tolled if:
(A) A program participant fails to pay sales tax on an item that was taxable; and
(B) The applicable tax is subsequently assessed as a result of an audit by the Revenue Division.
(2) All claims for sales and use tax refunds relating to an audited purchase shall be entitled to a refund of interest paid on the amount of tax assessed on the audited purchase if a refund is approved for the purchase.
(e) A business must reach the investment thresholds under 15-4-2706 within four (4) years from the date of the signed financial incentive agreement.
(f) (1) All claims for payroll rebate payments under 15-4-2707 shall be certified to the Department of Finance and Administration and shall be recertified annually thereafter during the term of the financial incentive agreement.
(2) Failure to annually certify or recertify payroll figures and claim the rebate payment shall result in:
(A) A ten percent (10%) reduction of the earned rebate if not claimed within twelve (12) months from the end of the tax year in which the rebate was earned; or
(B) A one hundred percent (100%) forfeiture of the earned rebate if not claimed within twenty-four (24) months from the end of the tax year in which the rebate was earned.
(g) (1) If the annual payroll of the business applying for benefits under this subchapter is not met within twenty-four (24) months after signing the financial incentive agreement, the business may request in writing an extension of time to reach the required payroll threshold.
(2) (A) If the Director of the Arkansas Economic Development Commission and the Director of the Department of Finance and Administration find that the approved business has presented compelling reasons for an extension of time, the Director of the Arkansas Economic Development Commission may grant an extension of time not to exceed forty-eight (48) months.
(B) However, the extension on projects applying for benefits under 15-4-2705 is limited to a twenty-four-month extension.
(3) (A) If a business fails to reach the annual payroll threshold before the expiration of the twenty-four (24) months or the time period established by a subsequent extension of time, the business will be liable for the repayment of all benefits previously received by the business.
(B) After a business has failed to reach the annual payroll threshold in a timely manner, the Department of Finance and Administration shall have two (2) years to collect benefits previously received by the business or file a lawsuit to enforce the repayment provisions.
(h) (1) If a business fails to reach the investment threshold before the expiration of the four-year time limit, the business will be liable for the repayment of all benefits previously received by the business.
(2) After a business has failed to reach the investment threshold of this subchapter in a timely manner, the Department of Finance and Administration shall have two (2) years to collect benefits previously received by the business or file a lawsuit to enforce the repayment provisions.
(i) (1) If the annual payroll of a business receiving benefits under this subchapter falls below the payroll threshold for qualification in a year subsequent to the one in which it initially qualified for the incentive, the benefits outlined in the financial incentive agreement will be terminated unless the business files a written application for an extension of benefits with the Arkansas Economic Development Commission explaining why the payroll has fallen below the level required for qualification.
(2) The Director of the Arkansas Economic Development Commission and the Director of the Department of Finance and Administration may approve the request for extension of time, not to exceed twenty-four (24) months, for the business to bring the payroll back up to the requisite threshold amount and may approve the continuation of benefits during the period the extension is granted.
(3) (A) If a business fails to reach the payroll threshold before the expiration of the twenty-four (24) months or the time period established by a subsequent extension of time, the business shall be liable for the repayment of all benefits previously received by the business.
(B) After a business has failed to reach the payroll threshold in a timely manner, the Department of Finance and Administration shall have two (2) years to collect benefits previously received by the business or file a lawsuit to enforce the repayment provisions.
(j) (1) If a business fails to reach the average hourly wage requirement for benefits under this subchapter within twenty-four (24) months of the effective date of the financial incentive agreement, the business will be liable for the repayment of all benefits previously received by the business.
(2) After a business has failed to meet the hourly wage requirements, the Department of Finance and Administration shall have two (2) years to collect benefits previously received by the business or file a lawsuit to enforce the repayment provisions.
(k) (1) If a business fails to meet the nonretail business requirements of this subchapter, the business will be liable for the repayment of all benefits previously received by the business.
(2) After a business has failed to meet the nonretail business requirements, the Department of Finance and Administration shall have two (2) years to collect benefits previously received by the business or file a lawsuit to enforce the repayment provisions.
(l) (1) Eligible businesses whose qualification depends on receiving seventy-five percent (75%) of their sales revenue from out-of-state customers shall meet this requirement within three (3) years from the date of their financial incentive agreement.
(2) (A) If the requirement is not met within three (3) years of the signed financial incentive agreement, the business may request in writing an extension of time to reach the required sales threshold.
(B) If the Director of the Arkansas Economic Development Commission finds that the business has presented compelling reasons for an extension of time, the Director of the Arkansas Economic Development Commission may grant an extension of time not to exceed twenty-four (24) months.
(m) (1) If a business fails to timely meet the out-of-state revenue requirements of this subchapter, the business will be liable for the repayment of all benefits previously received by the business.
(2) After a business has failed to meet the out-of-state revenue requirements, the Department of Finance and Administration shall have two (2) years to collect benefits previously received by the business or file a lawsuit to enforce the repayment provisions.
(n) (1) If a business fails to notify the Department of Finance and Administration that the annual payroll of the business has fallen below the payroll threshold for qualification for and retention of any incentive authorized by this subchapter, the business will be liable for the repayment of all benefits that were paid to the business after it no longer qualified for the benefits.
(2) After a business has failed to notify the Department of Finance and Administration that the business has fallen below the payroll threshold, the Department of Finance and Administration shall have two (2) years to collect benefits previously received by the business or file a lawsuit to enforce the repayment provisions.
(3) Interest shall also be due at the rate of ten percent (10%) per annum.
(o) (1) For a qualified business taking advantage of one (1) or more of the investment incentives offered in 15-4-2706, if the project costs exceed the initial project cost estimate included in the approved financial incentive agreement, the business shall submit an amended project plan to include updated cost figures as soon as the cost overrun is recognized.
(2) (A) An amendment that exceeds twenty-five percent (25%) of the original financial incentive agreement estimate will not be considered and shall be submitted as a new project.
(B) An amendment shall not change the start date of the original project.
(p) The Department of Finance and Administration may obtain whatever information is necessary from a participating business and from the Department of Workforce Services to verify that a business that has entered into financial incentive agreements with the Arkansas Economic Development Commission is complying with the terms of the financial incentive agreements and reporting accurate information concerning investments, payrolls, and out-of-state revenues to the Department of Finance and Administration.
(q) The Department of Finance and Administration may file a lawsuit in the Pulaski County Circuit Court or the circuit court in any county where a program participant is located to enforce the repayment provisions of this subchapter.
(r) (1) If a business fails to satisfy or maintain any other requirement or threshold of this subchapter, the business will be liable for the repayment of all benefits that were paid to the business after it no longer qualified.
(2) After a business has failed to comply with the requirements or thresholds of this subchapter, the Department of Finance and Administration shall have two (2) years to collect benefits previously received by the business or file a lawsuit to enforce the repayment provisions.
(s) If a repayment is required as a result of not complying with the requirements or thresholds of this subchapter, interest shall be due at the rate of ten percent (10%) per annum.