§ 15-4-3107 - Administration.
15-4-3107. Administration.
(a) (1) All claims for sales and use tax refunds under 15-4-3105 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.
(b) (1) The time limitation imposed by 15-4-3105 for filing claims shall be tolled if:
(A) A nonprofit organization fails to pay sales or use 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.
(c) A nonprofit organization must reach the investment threshold under 15-4-3105(b)(2) within four (4) years from the date of the signed financial incentive agreement.
(d) (1) All claims for payroll rebates under 15-4-3106 shall be certified to the Department of Finance and Administration and shall be recertified annually during the term of the financial incentive agreement.
(2) Failure to certify payroll figures and recertify those figures annually may result in a denial of payments.
(3) (A) If the annual payroll of the nonprofit organization applying for benefits under this subchapter is not met within twenty-four (24) months after the signing of the financial incentive agreement, the nonprofit organization may request in writing an extension of time to reach the required payroll threshold.
(B) If the Director of the Arkansas Economic Development Commission and the Director of the Department of Finance and Administration find that the nonprofit organization 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.
(e) (1) If the annual payroll of a nonprofit organization receiving benefits under this subchapter falls below the 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 shall be terminated unless the nonprofit organization 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 nonprofit organization to bring the payroll back up to the requisite payroll threshold amount and may approve the continuation of benefits during the period the extension is granted.
(3) If a nonprofit organization 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 nonprofit organization shall be liable for repayment of all payroll benefits previously received by the nonprofit organization.
(f) (1) If a nonprofit organization fails to maintain the average hourly wage requirements for benefits under this subchapter, the nonprofit organization shall be liable for the repayment of all payroll benefits previously received by the nonprofit organization.
(2) After a nonprofit organization has failed to maintain the average hourly wage requirements, the Department of Finance and Administration shall have two (2) years to collect benefits previously received by the nonprofit organization or to file a lawsuit to enforce the repayment provisions.
(g) (1) If a nonprofit organization fails to notify the Department of Finance and Administration that the annual payroll of the nonprofit organization has fallen below the threshold for qualification for and retention of any incentive authorized by this subchapter, the nonprofit organization shall be liable for the repayment of all payroll benefits that were paid to the nonprofit organization after it no longer qualified for the benefits.
(2) After a nonprofit organization has failed to notify the Department of Finance and Administration that the nonprofit organization has fallen below the payroll threshold, the Department of Finance and Administration shall have two (2) years to collect benefits previously received by the nonprofit organization or to file a lawsuit to enforce the repayment provisions.
(3) Interest shall also be due at the rate of ten percent (10%) per annum.
(h) (1) If the project costs of a qualified nonprofit organization taking advantage of the sales and use tax refund offered in 15-4-3105 exceed the initial project cost estimate included in the approved financial incentive agreement, the nonprofit organization shall submit an amended project plan to include the updated cost figures as soon as the cost overrun is recognized.
(2) (A) Amendments that exceed twenty-five percent (25%) of the original financial incentive agreement estimate shall not be considered and shall be submitted as a new project.
(B) An amendment shall not change the start date as specified in the original project.
(i) The Department of Finance and Administration may obtain necessary information from a participating nonprofit organization and from the Department of Workforce Services to verify that a nonprofit organization that has entered into financial incentive agreements with the commission is complying with the terms of the financial incentive agreements and reporting accurate information concerning investments and payrolls to the Department of Finance and Administration.
(j) The Department of Finance and Administration may file a lawsuit in Pulaski County Circuit Court or the circuit court in any county where a qualifying nonprofit organization is located to enforce the repayment provisions of this subchapter.
(k) The commission shall have the power to promulgate rules necessary to implement, enforce, and administer this subchapter.