AEDC Proposes Railroad Maintenance Credit Emergency Rule and Amendments to Motion Picture and Digital Product Credit Rule

The Arkansas Economic Development Commission, part of the Department of Commerce, has been diligently updating its rules to reflect credits and incentives legislation from the 2021 legislative session. Two proposed rulemakings are underway for specific industry credits:

An emergency rule for the Railroad Modernization Act of 2021, which created a transferrable income tax credit for 50% of qualifying track maintenance costs on regional and short line (Class II and Class III) railroads.
A proposed rulemaking for the amendments to the Digital Product and Motion Picture Industry Development Act, which generally enhanced the incentives available and also made them discretionary.
Interested businesses and their advisers should review and may wish to comment on these proposals. [More]

Arkansas to 4.9%: Comprehensive Tax Cut Legislation Introduced in the General Assembly Special Session

The Arkansas General Assembly reconvenes on December 7 for its Second Extraordinary Session, with a principal purpose of cutting income taxes. Identical bills SB1 (Dismang) and HB1001 (Maddox) have been filed with large majorities of both chambers signed up as cosponsors. The bills are expected to move quickly through the legislature. They will provide phased in top rate cuts, bracket harmonization yielding further relief for the middle class, and other reforms. It is expected to be the largest tax cut in Arkansas history. [More]

Arkansas DFA Revenue Legal Counsel Narrows Opinion Letter Practice

The Office of Revenue Legal Counsel at the Department of Finance and Administration has substantially restricted its opinion letter practice and is currently only accepting opinion requests that meet its interpretation of Rule GR-75. Income tax opinion requests or requests for opinions for undisclosed taxpayers may not be accepted. Taxpayers and their representatives should consider whether Revenue Legal Counsel is likely to accept an opinion request under this new approach before preparing and submitting a request. [More]

Arkansas Court of Appeals Recognizes Challenge to Property Tax Assessment on Mineral Rights

The Arkansas Court of Appeals recognized the validity of a taxpayer's challenge to the valuation of mineral rights in SWN Production Company (Arkansas), LLC V. Stobaugh, 2021 Ark. App. 324 (September 8, 2021). The opinion, which reversed the circuit court's dismissal of the valuation challenge, continues the trend of limiting authority of Assessment Coordination Division (ACD) guidelines and is also notable for recognizing that a valuation challenge no longer involves deference to the assessor. [More]