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Arkansas Tax and Incentives Update

Summary of 2017 Arkansas Property Tax Legislation

Posted On: Wednesday, April 26, 2017

Here is a summary of 2017 Arkansas property tax legislation. The most significant bill is Act 659, a property tax procedure fairness bill supported by the Arkansas State Chamber that should bring significantly more equity to Arkansas property tax disputes.  Read More

Summary of 2017 Arkansas Sales and Use Tax Legislation

Posted On: Wednesday, April 12, 2017

There were relatively limited changes to Arkansas sales and use tax laws in the 2017 legislative session. The big news is Act 465, which phases out the InvestArk sales/use tax credit program while bringing in an exemption for manufacturing partial repairs and replacement parts. While a welcome simplification of the Arkansas tax system, the loss of InvestArk will affect many Arkansas manufacturers. Businesses should consider filing a final InvestArk application by June 30, 2017. Beyond Act 465, the Act 141 expansion of the tax base to include digital products is significant and may affect taxpayers engaged in e-commerce. Read More

Summary of 2017 Arkansas Income Tax Legislation

Posted On: Tuesday, April 11, 2017

With the legislature in recess before returning for sine die in early May, here is a summary of the 2017 income tax legislation. Particularly significant adjustments have been made to passthrough taxation in terms of (1) federal S corporation election conformity, (2) passthrough entity-level apportionment instead of separate allocation, and (3) passthrough withholding on nonresident corporate partners; all are effective January 1, 2018. (If an effective date is not specifically listed, it should be 90 days after adjournment sine die, on or around July 30, 2017.) Read More

The "Arkansas Two-Step": Arkansas Income Tax for Multistate Passthroughs Before and After HB1562

Posted On: Wednesday, March 22, 2017

House Bill 1562, now Act 482, was a technical change to Arkansas taxation of multistate passthrough enterprises that basically conforms the law to what has been common compliance practice of apportionment at the partnership level. Arkansas law will continue to treat the resulting passthrough Arkansas income as allocable up to the partners.  Read More

Manufacturing Process Resumed: DFA Hearing Allows Manufacturing Exemption for Packaging Equipment

Posted On: Monday, February 06, 2017

An Arkansas manufacturer was allowed to claim the manufacturing machinery and equipment exemption on equipment used in preparing goods for shipment in a notable hearing decision issued at the end of 2016. Department of Finance and Administration Hearing nos. 16-444, 16-445 (Dec. 27, 2016). Read More

Gov. Hutchinson Proposes Income Tax Cuts and Revenue Offsets

Posted On: Tuesday, December 13, 2016

Today Governor Hutchinson announced his much-awaited tax cut proposals. There are two main parts. First, income tax cuts for poorest Arkansans. Second, tax exemption for retired military benefits (and a reduction in the soda tax) paid for by an income tax increase on unemployment compensation and sales tax increases on manufactured housing and candy and soft drinks.The main tax cut is rate reductions for poorer Arkansans: Read More

Arkansas Election Aftermath - Incentives & Tax

Posted On: Thursday, November 10, 2016

Some Arkansas tax and incentives updates from the election on Tuesday: 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 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

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


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Recent Posts


Will the FLIS Enterprises Case Be a Refund Opportunity for Sales Tax on Withdrawals from Stock? - June 1, 2017

Arkansas Tax Reform Task Force Gearing Up - May 29, 2017

Summary of 2017 Tax and Incentives Legislation - May 20, 2017


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