DFA Assessment Coordination Division Proposes Property Tax Exemption Rules Requiring Every Exempt Parcel to Reapply

The Assessment Coordination Division (ACD) of the Arkansas Department of Finance and Administration has proposed rules on tax exemption determinations as mandated by Act 819 of 2019. The rules would require every exempt parcel to reapply for exemption in 2023, and the draft exemption application would require a large amount of information to prove entitlement to the exemption. The rules do not provide substantive guidance about what kinds of uses of property should or should not qualify for exemption. The deadline for comments on the proposed rule is May 31, and a hearing on the proposed rules will be held June 1. Interested parties should consider participating in the rulemaking process. [More]

Free Webinar: New Arkansas Tax Legislation & What It Means for Your Business

With the legislative session wrapping up, Dover Dixon Horne member Matt Boch and Arkansas Department of Finance Assistant Commissioner Paul Gehring will present a webinar to discuss new Arkansas tax legislation passed by the 93rd General Assembly. The webinar is being provided by the Arkansas State Chamber of Commerce as part of its RechARge Arkansas series. Matt and Paul will cover the new tax laws and with a focus on how they will impact your business. [More]

Arkansas Supreme Takes Expansive Reading of Manufacturing Exemption for Pipemaker's Steel Grit

The Arkansas Supreme Court upheld the sales and use tax manufacturing exemption for steel grit used to make pipes in Walther v. Welspun Tubular, LLC, 2021 Ark. 90 (Apr. 22, 2021). This case provides significant clarification of (1) the plant expansion exemption, (2) the articles of commerce requirement, and (3) the continuing utility of equipment requirement. As such, it should be of interest to almost all manufacturers. The positions on each of these issues that were upheld by the court are broader than what the Department of Finance and Administration (DFA) generally has allowed. Arkansas manufacturers should consider whether they can benefit from applying these principles to their own tax situations. [More]

Arkansas Creates the Independent Tax Appeals Commission

In a landmark development for the Arkansas tax system, Governor Hutchinson has signed Act 586 (HB1468) to establish an independent Arkansas Tax Appeals Commission. The legislation was sponsored by Rep. Joe Jett and Sen. Blake Johnson and also closely supported by Sen. Jonathan Dismang. The Commission will provide a neutral panel of experienced tax professionals to hear and resolve taxpayer disputes with the Department of Finance and Administration (DFA). It will be established by July 2022 and will begin hearing cases in January 2023. [More]