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Arkansas Tax and Incentives Update

Arkansas Tax Reform Task Force Gearing Up

Posted On: Monday, May 29, 2017

The Arkansas Tax Reform and Legislative Relief Task Force convened for the first time on May 22. Its membership had been set the prior week based on appointments from House Speaker Jeremy Gillam, Senate President Pro Tempore Jonathan Dismang, and other legislative leaders. Read More

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

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

Caution! Income Tax Apportionment Bill (MTC UDITPA Amendments) Advancing Quickly

Posted On: Thursday, March 09, 2017

Among the hundreds of bills filed on the March 6 deadline was HB2100, sponsored by House Revenue & Taxation Committee Chair Joe Jett. This is a Department of Finance and Administration bill that takes up the model amendments to the Uniform Division for Income Tax Purposes Act (UDITPA) that were adopted by the Multistate Tax Commission (MTC) in 2015. The legislation makes significant changes to Arkansas apportionment, particularly for receipts from services and intangibles. The expansion of the throwback rule and the adoption of a throwout rule particularly stand out for concern. Any affected taxpayers interested in adjusting the bill should act soon: the legislation already has moved out of the House Revenue & Taxation Committee and could be heard on the House floor next week. Read More

SB362 to Phase Out InvestArk and the Tax on Manufacturing Repair Parts and Services

Posted On: Sunday, February 19, 2017

A proposal is underway for major simplification of Arkansas sales and use taxes on manufacturing: SB362 would phase out both the InvestArk investment incentive program and the sales tax on partial replacements and repairs of manufacturing machinery and equipment. Manufacturers should consider whether they can apply for one more InvestArk project by June 30, 2017, after which InvestArk will cease taking new applications and will begin to wind down. Read More

SB140 Economic Nexus Bill Fails in House Revenue & Taxation Committee

Posted On: Tuesday, February 14, 2017

Senator Jake Files's economic nexus bill, SB140, failed a do pass vote in the House Revenue & Taxation Committee today; the legislation's prospects are now unclear. SB140, which had passed the Senate, is an economic nexus bill modeled on South Dakota's. It would provide a $100,000 or 200-transaction threshold to trigger a sales/use tax collection obligation for an out-of-state seller. Senator Files submitted an amendment to the House committee today that would add a use tax reporting alternative to create a hybrid remote seller bill giving sellers exceeding the threshold a choice of Colorado-style information reporting or sales tax collection; this amendment was approved. Read More

COST Recognizes Arkansas as "Most Improved" in Fariness of Tax Administration

Posted On: Thursday, December 22, 2016

The Council on State Taxation (COST) has declared Arkansas the "most improved" state in its triennial survey of the fairness of states' tax administration systems. The state's grade jumped to B+ from 2013's C-, which had listed Arkansas as one of the worst states.  Read More

Tax Foundation / ACRE Tax Reform Study Released

Posted On: Monday, November 14, 2016

The Tax Foundation and the Arkansas Center for Research in Economics (ACRE) today released their official report, "Arkansas: The Road Map to Tax Reform." These two organizations have collaborated over the past several months, interviewing numerous stakeholders in business and government throughout the state. Their preliminary analysis and conclusions had been highlighted in a legislative hearing back in September (prior post). Today featured a press release and a legislative hearing before the Economic and Tax Policy Committee. 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


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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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