What Does Government Transformation Mean for Arkansas Taxpayers?

While Arkansas taxpayers' attention in the 2019 session focused on enactment of tax reform legislation, another major change adopted by the legislature was comprehensive, statewide governmental transformation, in the form of the Transformation and Efficiencies Act of 2019 (Act 910). This is reorganizing the myriad state agencies into 15 cabinet-level agencies, each headed by a secretary. The reorganization was effective July 1, 2019, but—like any merger—the implementation will take months or even years for the complete impact to be felt: One of the selling points of the legislation was that no one would immediately be made redundant, but, over time, it the administration will try to wring out efficiencies through consolidation and shared services. [More]

Administrative Hearing: "Tax-Included" Invoicing Creates Remittance Obligation Regardless of Taxability

States vary in the degree to which they allow sellers to bundle ("tax included") sales tax instead of collecting from the customer as a separate line-item, and Arkansas practice is generally fairly liberal. But this can be a double-edged sword, as shown in Department of Finance and Administration (DFA) Administrative Decision nos. 19-415 & 416 (Jun. 28, 2019), which held that a "tax included" legend meant that the seller was collecting sales tax. As a collector, that seller had an obligation to remit the deemed collected tax regardless of the underlying taxability of the transaction and was found liable for tax for failing to do so. [More]

COST Southeast Regional State Tax Seminar in Memphis on June 27

Dover Dixon Horne is proud to co-sponsor the Council on State Taxation (COST) Southeast Regional State Tax Seminar on Thursday, June 27, 2019, in Memphis. This all-day seminar will cover national state and local tax trends and with a particular focus on developments in the South. Speakers include representatives of the Arkansas, Mississippi, and Tennessee revenue agencies, COST's in-house experts, and experienced SALT lawyers from Brunini, Carter Shelton, Dean Mead, and Dover Dixon Horne. [More]