§ 26-18-1003 — Judicial relief - Definitions

(a) As used in this section: (1) "Administrative decision" means a decision issued under § 26-18-1002 to affirm the decision of the Secretary of the Department of Finance and Administration to close the business of a noncompliant taxpayer; (2) "Business" means a business subject to an administrative decision; and (3) "Business closure order" means a notice of closure issued by the secretary under § 26-18-1001 . (b) (1) A noncompliant taxpayer may seek judicial relief from an adverse administrative decision under this subchapter by filing suit within twenty (20) calendar days of the date of the administrative decision. (2) Jurisdiction for a suit under subdivision (b)(1) of this section is in the Pulaski County Circuit Court or the circuit court of the county in which the noncompliant taxpayer resides or has his or her principal place of business, where the matter shall be tried de novo. (3) The secretary may seek judicial relief under § 26-18-1117 from an adverse administrative decision issued by the Tax Appeals Commission by filing suit in the Pulaski County Circuit Court or in the circuit court of the county in which the noncompliant taxpayer resides or has its principal place of business in the state within twenty (20) days of the date of the administrative decision, where the matter shall be tried de novo. (c) (1) (A) A noncompliant taxpayer shall not operate a business after twenty (20) calendar days from issuance of an administrative decision unless the noncompliant taxpayer obtains an order from the circuit court staying the effect of the administrative decision. (B) An order of a circuit court to stay the effect of an administrative decision may be revoked if the secretary provides proof that the taxpayer has failed to timely file returns for or make full payment of the taxes identified in § 26-18-1001(a) after the date suit is filed under this section. (2) If a noncompliant taxpayer fails to obtain an order staying the effect of the administrative decision or if an order staying the effect of the administrative decision is later revoked, the secretary shall follow the procedures in §§ 26-18-1004 and 26-18-1005 to enforce the closure of the business pending the outcome of the suit filed under this section. (d) The noncompliant taxpayer or the secretary may file an appeal of the circuit court decision to the appropriate appellate court as provided by law. (e) (1) If a circuit court issues an order under this section affirming a business closure order, the order of the circuit court shall constitute an injunction prohibiting further operation of the business. (2) In order to operate a business while an appeal is pending under subsection (d) of this section, a noncompliant taxpayer shall obtain an order from the appellate court staying the decision of the circuit court. (f) The procedures established by this section are the sole methods for seeking judicial relief from an administrative decision. (g) A noncompliant taxpayer shall not continue to operate a business if: (1) The noncompliant taxpayer fails to seek judicial relief from a business closure order under this section; (2) The noncompliant taxpayer fails to obtain a stay of the effect of a business closure order under subsections (c) and (e) of this section; or (3) A business closure order is upheld on an appeal filed under subsection (d) of this section. (h) Upon conviction, any person responsible for the decision to operate a business in violation of this subchapter is guilty of a Class A misdemeanor.

Legislative History

Amended by Act 2021, No. 593,§ 22, eff. 1/1/2023. Amended by Act 2019, No. 910,§ 3656, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 3655, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 3654, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 3653, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 3652, eff. 7/1/2019. Amended by Act 2017, No. 759,§ 2, eff. 8/1/2017. Acts 2003 (2nd Ex. Sess.), No. 46, § 2; 2005, No. 1962, § 114.