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Arkansas Tax and Incentives Update

DFA Hearing Calls Party Foul on Restaurant's Tax-Included Drink Pricing

Posted On: Tuesday, August 08, 2017

While Arkansas Department of Finance and Administration generally tolerates retailers not collecting sales tax as a separately stated amount, sellers need to understand the risk of being required to absorb the tax and pay it out-of-pocket instead of treating the sale as tax-included pricing and backing out the tax from the tax base of gross receipts. Hearing nos. 16-209, 16-210, 16-211 (May 8, 2017) illustrates this risk: A restaurant that also sold mixed drinks claimed a tax-included pricing approach, but this was rejected by the Department, likely effectively increasing the tax imposed by 50%. 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

Arkansas Taxing Lawn-less "Lawn Care"

Posted On: Wednesday, October 26, 2016

Perhaps the scariest aspect of law to a small business is when words are defined to have a special meaning inconsistent with ordinary usage. An herbicide-spraying taxpayer learned this to its detriment in the Department of Finance and Administration's Office of Hearings and Appeals Administrative Decision no. 16-387 (Oct. 10, 2016), which upheld taxation of herbicide spraying as "lawn care" even in instances where no lawn apparently was involved. Read More


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Recent Posts


Property Tax Reform? Committee on Economic and Tax Policy Hears Testimony - September 22, 2017

Tax Reform Task Force Selects PFM as Outside Consultant - September 7, 2017

Matt Boch to Speak at Arkansas Sales and Use Tax for Manufacturers Seminar - September 5, 2017


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