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

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

Arkansas Tax Reform Task Force Hears Competing Views in July 11 Meeting

Posted On: Friday, July 14, 2017

The Arkansas Tax Reform and Legislative Relief Task Force met on July 11, 2017, for the first round of policy presentations by local and national organizations and to conduct other business. Arkansas Advocates for Children and Families (AACF) led by advocating various measures to benefit low income consumers. AACF criticized recent cuts in personal income tax rates and recommends Arkansas adopt a state earned income tax credit (EITC) based on the federal model. In the sales tax area, AACF recommends increasing taxes on business and reducing taxes on personal consumption. It also recommends increasing state investment in schools, highways, community safety and improving community amenities. With respect to highways, AACF recommends updating the fuel tax structure while offsetting the impact on low income working families using the EITC. AACF’s “Briefing Memo” is available hereRead More

2017 Arkansas Tax Legislative Developments for the Environmental / Industrial Community

Posted On: Monday, July 03, 2017

The May/June Arkansas Environmental Federation newsletter, Industries for the Environmentfeatured a summary of the 2017 Arkansas tax legislative developments likely of interest to AEF members, entitled "The Dust Settles: Arkansas Tax Developments from the 2017 Legislative Session," and authored by DDH attorneys Matt Boch and T.J. Lawhon. A reprint of the article is available hereRead More

Summary of 2017 Arkansas Tax Procedure Legislation

Posted On: Tuesday, May 02, 2017

The 2017 legislative session saw seemingly minor adjustments to tax procedure, but with significant impacts to affected taxpayers: 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

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

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 Election Aftermath - Incentives & Tax

Posted On: Thursday, November 10, 2016

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


Go Back

Subscribe


Click here to subscribe

Recent Posts


DFA Hearing Calls Party Foul on Restaurant's Tax-Included Drink Pricing - August 8, 2017

Matt Boch to Discuss Tax Legislation and Reform at the Fayetteville Chamber of Commerce - August 2, 2017

DDH Partners Author Arkansas Pass-Through Entity Navigator for Bloomberg BNA - July 14, 2017


Tag Cloud



Tag List