Taxing the Coronavirus Economy: Arkansas DFA Opines that Disinfecting Services and Videoconferencing Are Taxable

Recent weeks have seen a high volume of Arkansas Department of Finance and Administration (DFA) legal opinions and hearing decisions being published. This includes a pair of opinions regarding sales tax on services in high demand during the coronavirus epidemic: disinfecting / deep cleaning and videoconferencing. DFA Revenue Legal Counsel has advised that both are taxable, as cleaning and janitorial services and telecommunications services respectively. [More]

Get Ready for Round 2 of Arkansas Ready for Business Grants!

Arkansas businesses that did not previously apply should get ready today to apply quickly tomorrow, May 5, for Arkansas Ready for Business grants. These are $1,000-per-employee grants that can be used for PPE, disinfection deep cleaning, and other health and safety equipment or services related to opening or operating a business during the coronavirus epidemic (see our prior post for details). Very small (50 employees or under) or women/minority-owned businesses should especially consider applying because of funding set-asides. Applications may continue to be first-come first-served, so businesses should apply as soon at the application system opens tomorrow, May 5. (We will update this post as additional details become available.) [More]

$15 Million Arkansas Ready for Business Grant Program Starts (and Finishes) Taking Applications Today

Today Governor Hutchinson announced a new $15 million grant program to be administered by the Arkansas Economic Development Commission to help businesses with costs associated with assuring the health and safety of employees and patrons during the coronavirus epidemic. Applications begin today, April 29, at 5:00 p.m. Given the pattern of coronavirus relief funding being used up quickly (think federal SBA PPP funding), interested businesses should apply as soon as possible. [More]

Arkansas COVID-19 Tax Extensions - Individuals & Passthroughs Delayed; Corporations Not (Except for Franchise Tax)

So far Arkansas is taking a limited approach to tax deadline extensions compared with other states, with the relief focused on individuals and small businesses:
- 2019 individual, passthrough, and fiduciary/estate income tax returns and payments extended to July 15.
- 2019 corporate income tax returns not extended.
- 2020 income tax estimated payments not extended (including estimated payments for individuals).
- Sales tax or excise tax reporting and payment deadlines not extended.
- Franchise tax late payment penalties and interest waived if filed and paid by July 15.
- Property tax payment deadline of October 15 and personal property rendition due May 31 have not been extended. [More]

Is COVID-19 Sterilization a Taxable Service in Arkansas?

With the demand for COVID decontamination on the upswing, businesses providing COVID-19 cleaning or sterilization services in Arkansas should consider the sales taxability of such services. Arkansas taxes cleaning and janitorial services. Ark. Code Ann. § 26-52-301(3)(D)(i)(b); Gross Receipts Tax Rule GR-9.4. DFA's applied interpretation of cleaning is sometimes broader than ordinary janitorial services; for example providers of industrial cleanup services may be surprised to see DFA take the position that such services are taxable. [More]