AEDC Proposes Updates to Consolidated Incentives Rules

The Arkansas Economic Development Commission has proposed a number of revisions to its Consolidated Incentives Act rules. These lengthy proposed changes generally implement the numerous changes made by Act 327 of 2019, which was a once-in-a-decade updating of the Consolidated Incentives Act of 2003, Ark. Code Ann. §§ § 15-4-2701 et seq. Businesses considering economic development projects should be careful that they understand and are following the updated law. In many cases the changes slightly expanded the incentives, but in some areas requirements were tightened (Tax Back, R&D credits). [More]

Register for the 2020 Arkansas Tax Conference on November 17!

The agenda is now finalized and registration is open for the Arkansas State Chamber of Commerce's 2020 Arkansas Tax Conference. You can attend virtually or in person. This is the third Arkansas Tax Conference that the Chamber has put on, and this will be the first one just before the legislative session. Attendees will learn about recent developments impacting Arkansas taxpayers and preview tax proposals likely to surface in the 2021 session that will begin in January. The event also provides a chance to hear from and interact with a deep bench of the Arkansas Department of Finance and Administration's senior administrators and leading Arkansas practitioners. DDH is proud to be a presenting sponsor of the event. [More]

Retirement and Reshuffling of Arkansas DFA Administrators

We recently saw a notable retirement at the Department of Finance and Administration: Tom Atchley, the longstanding Administrator of Sales and Use Tax, has retired. Tom has been well known and regarded for expertise in transaction tax matters, including work with the Streamlined Sales Tax Project. With Tom's retirement, the remaining tax Administrators will be moving to new areas or around November 1, 2020. [More]

Court of Appeals Takes Broad Read of County Court Property Tax Exclusive Original Jurisdiction

The recent Court of Appeals decision in David L. Eddy, P.A. v. Haley, 2020 Ark. App. 430 (Sept. 23, 2020), continues a trend of Arkansas courts recognizing county courts as judicial venues with broad jurisdiction over property tax cases. Taxpayers considering lawsuits relating to property taxes should consider whether jurisdiction for the initial suit lies in county court instead of circuit court. [More]

DFA Updated COVID-19 FAQ Advises Taxability of Arkansas Ready for Business Grants

The Arkansas Department of Finance and Administration (DFA) has updated its "Frequently Asked Questions Regarding the Impact of Coronavirus (COVID-19)" (rev. Sept. 18, 2020) to specify that receipt of an Arkansas Ready for Business grant is taxable income for Arkansas income tax purposes that generally will be offset by expense deductions for purchases under the program. This guidance seems correct given the legal framework of Arkansas income tax, although it conceivably could be changed by legislation in the upcoming legislative session. (And regardless of what the Arkansas General Assembly does, it would also seem to be required for federal income tax purposes.) [More]