Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 6 - LICENSES, PERMITS, AND REGISTRATIONS (§§ 26-18-601 — 26-18-602) › Section 26-18-601 - Cancellation or refusal of license or permit

(a)
(1)
The Secretary of the Department of Finance and Administration may cancel or refuse to issue, extend, or reinstate a license, permit, or registration under any state tax law to a person or taxpayer who has within the last three (3) years failed to comply with a state law concerning the timely reporting and payment of a state tax administered by the secretary or failed to observe or fulfill the conditions upon which the license or permit was issued.
(2)
A failure to pay assessed interest and penalties on a delinquent state tax is grounds for a decision to cancel or refuse to issue, extend, or reinstate a license, permit, or registration under this subsection.
(b)
(1)
When the secretary determines, in his or her sole discretion, that an emergency situation exists and that the public welfare and safety are endangered, he or she may issue an order temporarily suspending a license, permit, or registration pending a hearing before him or her or the Tax Appeals Commission under the Independent Tax Appeals Commission Act, §
26-18-1101
et seq., on the subject of the cancellation of the license, permit, or registration.
(2)
The secretary shall give notice of the temporary suspension at the same time that he or she gives notice of his or her intention to cancel or to refuse to issue, extend, or reinstate any license, permit, or duplicate copy of a license or permit, as provided by this section.
(3)
The temporary suspension shall be made permanent without a hearing unless the taxpayer seeks administrative review and relief from the order of temporary suspension by filing a protest under §
26-18-404
or by filing a petition under the Independent Tax Appeals Commission Act, §
26-18-1101
et seq.
(4)
If a taxpayer seeks administrative review and relief under subdivision (b)(3) of this section, a hearing shall be held within three (3) days after the request for review and relief, and a decision shall be issued within three (3) business days after the conclusion of the hearing.
(c)
(1)
Except as set out in subsection (b) of this section, before the secretary may cancel or refuse to issue, extend, or reinstate any license, permit, or registration, he or she shall give notice of his or her proposed action, and the owner or applicant shall have twenty (20) days after receipt of the secretary's decision to request a hearing under §
26-18-405
or under the Independent Tax Appeals Commission Act, §
26-18-1101
et seq.
(2)
A decision of the secretary or the Tax Appeals Commission shall be issued within twenty (20) days after the conclusion of the hearing authorized in subdivision (c)(1) of this section.
(3)
(A)
The taxpayer may request a revision of an adverse decision of a hearing officer appointed under §
26-18-405
by submitting the request in writing within twenty (20) calendar days of the date of the decision.
(B)
If the secretary refuses to make a revision under subdivision (c)(3)(A) of this section or if the taxpayer does not request a revision, the affected taxpayer may seek relief from the hearing officer's decision by following the method provided in §
26-18-602
.
(d)
(1)
When a license, permit, or registration is cancelled by the secretary, all accrued fees, taxes, and penalties, even though not due and payable at the time of cancellation under the state tax law imposing and levying the tax, shall become due concurrently with the cancellation of the license, permit, or registration.
(2)
The licensee or permittee shall within five (5) business days of cancellation make a report to the secretary covering the period not previously covered by reports filed by that person and ending with the date of the cancellation and shall pay all accrued fees, taxes, and penalties at the time the report is made.
(3)
Violation of this subsection is a Class C misdemeanor.
(e)
The hearings and decisions of the secretary and the commission under this section shall not be subject to the provisions of the Arkansas Administrative Procedure Act, §
25-15-201
et seq.
(f)
(1)
Violations of this section shall be punished as provided in §
26-18-206
.
(2)
The secretary may seek to enjoin any violation of any state tax law the secretary is charged to enforce.
(g)
Administrative relief from a decision of the secretary to temporarily suspend, cancel, or refuse to issue, extend, or reinstate a license, permit, or registration made on or after January 1, 2023, is available only to a taxpayer under the Independent Tax Appeals Commission Act, §
26-18-1101
et seq.
Amended by Act 2021, No. 593,§ 18, eff. 1/1/2023.
Amended by Act 2017, No. 762,§ 1, eff. 1/1/2018.
Acts 1979, No. 401, § 16; 1983, No. 379, § 23; A.S.A. 1947, § 84-4716.