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Arkansas Tax and Incentives Update

Arkansas Supreme Court Gives University of Arkansas Sovereign Immunity from Local Property Taxes

Posted On: Thursday, February 18, 2016

The Arkansas Supreme Court dramatically broadened state government's immunity from ad valorem property tax by applying the doctrine of sovereign immunity in Washington County v. Board of Trustees of the University of Arkansas, 2016 Ark. 34 (Feb. 4, 2016). The decision marks a departure from a prior case where state-owned property could be subjected to tax.
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Chim Chim Cheroo! DFA Interprets "Cleaning Service" Narrowly

Posted On: Thursday, February 04, 2016

Burt from Mary Poppins would leap with joy: The Department of Finance and Administration, in Opinion No. 20160105, has advised that chimney cleaning services are not taxable.  The ruling is a reminder that while the state does tax "cleaning services," not every cleaning service is taxable. Read More

Repeal of InvestArk Credits Would Reduce Arkansas Manufacturing Competitiveness

Posted On: Friday, January 29, 2016

The repeal of the InvestArk sales tax credit program is under consideration as a revenue raiser to help pay for Arkansas highways.  This program, which provides a sales tax credit for major upgrades of manufacturing equipment and other investments, is critical to the state's competitiveness in retaining manufacturing jobs.  Potentially affected companies need to contact their representatives.  For a detailed explanation, please see our Arkansas Tax Update bulletin authored by Mike Parker.  Read More

You Don't Need a Megaproject: Southworth Products Expansion in Manila Yields Incentive Benefits

Posted On: Sunday, January 10, 2016

Earlier this week, the Arkansas Economic Development Commission announced an expansion by the Southworth Products Corporation at its facility in manila (Mississippi County).  The company is creating 35 new jobs and investing $935,000.  Its incentive package consisted of Cash Back sales tax incentives, Advantage Arkansas job creation incentives, and state and local community development block grants of $350,000 each. (See Arkansas Business coverage.) Read More

DFA Legal Opinion and Hearing Decision Databases Online

Posted On: Monday, January 04, 2016

As required by tax fairness legislation enacted last year (Act 896 of the 2015 Regular Session), the Arkansas Department of Finance and Administration has established online databases to publish its legal opinions and hearing decisions.  Legal opinions from Revenue Legal Counsel are at available at https://www.ark.org/dfa-act896/index.php/search/opinion/; hearing officer decisions or revisions are available at https://www.ark.org/dfa-act896/index.php/search/decision/.  The opinions and decisions are redacted to protect taxpayer confidentiality.  Read More

DFA Opinion Takes Narrow Reading of Arkansas Sales Tax Charitable Exemption

Posted On: Monday, January 04, 2016

One of the tax pitfalls for nonprofits is assuming that federal 501(c)(3) status means that the nonprofit is also eligible for other charitable tax exemptions. The DFA's first published opinion, No. 20140807 (Dec. 18, 2015), takes such a narrow reading of the Arkansas sales tax charitable exemption, denying the taxpayer the benefit of the exemption and exposing it to potential liability for failing to collect and pay sales tax. Read More

Welcome to the Arkansas Tax and Incentives Update

Posted On: Friday, January 01, 2016

Dover Dixon Horne is proud to announce its first blog, the Arkansas Tax and Incentives Update. Leveraging the firm's leadership in the area of Arkansas state and local taxes, this blog will provide Arkansas businesses, taxpayers, and tax professionals with the news and insights needed to stay abreast of developments in the world of Arkansas taxes and incentives. We will cover all forms of Arkansas taxes--income, sales and use, property, and other miscellaneous taxes--as well as state and local economic development incentives. Read More

Incentives Roundup: J.B. Hunt, Bad Boy Mowers, and Simmons Foods Expansions

Posted On: Tuesday, December 15, 2015

Mid-December has seen a spate of expansion announcements from the Arkansas Economic Development Commission (AEDC). From an incentives perspective, the highlights are as follows: Read More

Arkansas Court of Appeals: You Need a Lawyer to File a Petition to Appeal an Ad Valorem Tax Assessment to County Court

Posted On: Monday, November 30, 2015

Taxpayers need to be careful to use an attorney when required in the property tax appeals process. The Arkansas Court of Appeals, in Stephens Production Company v. Bennett, 2015 Ark. App. 617 (Oct. 28, 2015), affirmed a lower court's dismissal of appeals of the taxpayer's 2011 and 2012 Franklin County tax assessments. The taxpayer had disagreed with the County Assessor's assessments of the taxpayer’s mineral interests, and it appealed the assessments to the Franklin County Board of Equalization. After the Board of Equalization affirmed the assessments, the taxpayer filed petitions to appeal to County Court with the County Clerk, following the prescribed statutory procedure. These petitions to appeal were signed by a taxpayer employee, its tax accounting manager. The County Court affirmed the assessments. On further appeal to the Circuit Court, the assessments were dismissed for three reasons: (1) lack of jurisdiction because the appeal to County Court was filed by a non-attorney, (2) failure to join necessary parties (the Franklin County Equalization Board and the Arkansas Assessment Coordination Department), and (3) exclusive jurisdiction by the Arkansas Public Service Commission. Appeal to the Arkansas Court of Appeals followed.
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