(501) 375-9151 425 West Capitol Suite 3700 Little Rock, AR 72201

Arkansas Tax and Incentives Update

2015 Arkansas Tax Advisory Council Year-Ending Report Released

Posted On: Thursday, October 20, 2016

The 2015 Year-Ending Report of the Arkansas Tax Advisory Council was released in late September. This document summarizes the activities of the Tax Advisory Council, a statutorily-mandated body that meets several times a year to provide a forum for taxpayer input on DFA's administration of tax. The Dover Dixon Horne state tax team attends Tax Advisory Council meetings on behalf of the Arkansas Bar Association and suggests ways to make the system more taxpayer-friendly. Read More

What's the Deal With Ballot Issue #3? (the Economic Development Amendment)

Posted On: Wednesday, October 12, 2016

In a few weeks, Arkansas voters are going to have a chance to approve an amendment to the state constitution that would enhance economic development capabilities at both the state and local levels. Read More

Arkansas Revenue & Tax Committees' Joint Hearing Considers Reducing Sales Tax Vendor Discount and Other Changes

Posted On: Wednesday, October 05, 2016

Today's joint meeting of the Arkansas House and Senate Committees on Revenue and Taxation featured two topics: (1) property tax administration reform and (2) a proposal to reduce sales tax vendor discounts while also prohibiting financial institutions from charging interchange fees on tax amounts. Read More

Conservative tax reform in 2017? Studies are underway...

Posted On: Monday, October 03, 2016

Will Arkansas have conservative tax reform in 2017? A study is underway by the Tax Foundation and the Arkansas Center for Research in Economics (ACRE). The Senate and House Interim Committees on Revenue and Taxation held a hearing on September 20, 2016, to hear from representatives of these organizations as well as testimony from the conservative Advance Arkansas Institute and UALR tax law professor Philip Oliver. The ACRE speakers addressed ideal tax structure and the perceived  challenges of incentives / tax expenditures. The Tax Foundation discussed the uncompetitiveness of Arkansas's tax code and potential solutions. Testimony from Professor Oliver and the Advance Arkansas Institute focused on the extent of distortionary special provisions and the need for a simplified, broad-based tax. The overall consensus was (1) expansion of sales tax on consumer purchases, (2) reduction of sales tax on business inputs, (3) reduction of income tax rates, and (4) reduction or elimination of credits and other special incentives or exemptions. Read More

Arkansas Tax Traps and Found Money in Little Rock on November 16

Posted On: Sunday, September 18, 2016

We're bringing it home: The Dover Dixon Horne state tax team (Michael Parker, Matt Boch, & T.J. Lawhon) is going to present our "Arkansas Tax Traps and Found Money" seminar at the Arkansas State Chamber in Little Rock on November 16, 2016.  Read More

Retirements and Reshuffling at Arkansas DFA

Posted On: Tuesday, August 23, 2016

John Theis, Assistant Commissioner – Policy & Legal, retired at the end of June, as did Roberta Overman, the Sales & Use Tax Manager. The departure of two well-regarded DFA leaders is a loss to the agency, particularly where John Theis’s role is not exactly being replaced: Instead of hiring or promoting a new Assistant Commissioner, Paul Gehring will become the new Assistant Commissioner—Policy & Legal while also retaining his Chief Counsel role. At the same time, some of the duties that John Theis historically had undertaken, including review of DFA hearing decisions, will be assumed by Walter Anger who is now the Lead Revenue Assistant Commissioner for all offices within DFA Revenue. Walther was previously the Assistant Commissioner – Operations & Administration.
 Read More

Arkansas DFA "Vodafones" Taxpayer's Refund Claims

Posted On: Sunday, July 10, 2016

Make sure that you get your apportionment right on the original return:  In a Department of Finance and Administration hearing decision, nos. 16-202 and 16-203 (May 27, 2016), the administrative law judge upheld the use of alternative apportionment to deny a refund claim.  The facts unfortunately resemble the unfairness of Tennessee's Vodafone case: The taxpayer realized that the wrong sourcing methodology had been used on the original returns and filed refund claims claiming the benefit of the statutory methodology. The tax administrator invoked alternative apportionment (Ark. Code Ann.§ 26-51-718) to require the original return methodology and thereby deny the claims. Read More

Arkansas Supreme Court: Drinking Water Treatment Is Not Manufacturing

Posted On: Thursday, May 19, 2016

The Supreme Court of Arkansas rejected allowing the sales and use tax manufacturing exemption to water purification equipment in Walther v. Carrothers Construction Company of Arkansas, LLC, 2016 Ark. 209 (May 19, 2016).  This decision restricts the application of the exemption where the taxpayer is engaged in cleaning or purifying a product. Read More

InvestArk Safe for Now

Posted On: Friday, May 06, 2016

In a win for Arkansas manufacturing competitiveness, Governor Hutchinson has announced that cuts to the InvestArk investment incentive will not be a part of his highway funding proposal. As we had previously covered, InvestArk was at risk of being cut to raise revenue in a political climate that is increasingly critical of incentives. InvestArk is a vital tool in encouraging growth and investment by existing Arkansas businesses. Read More

Big Thaw: DFA Reverses Opinion and Treats Freezer as Manufacturing

Posted On: Thursday, April 28, 2016

The Department of Finance and Administration (DFA) recently published a letter opinion, no. 20151008-S (Apr. 4, 2016), allowing a poultry blast freezer to obtain the reduced rate of sales tax on electricity used in manufacturing. This letter opinion was a reversal of a previously issued opinion, no. 20151008 (Feb. 9, 2016), which had wrongly denied the low rate on the basis that blast freezing was not actual manufacturing. (See our prior post criticizing the opinion.) This about-face demonstrates a benefit of tax transparency: The taxpayer community can identify erroneous legal interpretations and get them corrected. Read More


Go Back

Subscribe


Click here to subscribe

Recent Posts


Arkansas Tax Reform Task Force Takes on Sales, Use and Excise Taxes - November 8, 2017

Taxpayer Strikes Out Again vs. APSC Tax Division - November 2, 2017

Call the Movers: DFA ALJs Will Be Reassigned and Relocated for Increased Independence - October 13, 2017


Tag Cloud



Tag List