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Lawsuit challenges state's effort to collect taxes - KTBS.com - Shreveport, LA News, Weather and Sports

Lawsuit challenges state's effort to collect taxes

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A lawsuit filed in Pulaski County challenges the secretary of state's ability to block individuals from establishing new corporations when they owe debts for old ones.

A spokesman for Secretary of State Mark Martin says the office refuses to accept new papers of incorporation filed by individuals whose former corporations' statues were revoked for not paying franchise taxes. A representative must file an application with the secretary of state's office and pay any due franchise tax to dissolve a corporation.

The Arkansas Democrat-Gazette reports that Sherwood attorney A. Vaughan Hankins filed the lawsuit on behalf of a Pulaski County real-estate developer who tried to form a limited-liability company but was refused because he was told that he was a member of another corporation that owed delinquent franchise taxes.

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