Governor's 2022 Budget Plans for $50 Million of Tax Cuts

On November 10, Governor Hutchinson announced several tax proposals for his legislative agenda as part of the FYE 2022 budget (Arkansas's fiscal year runs from July to June). These proposals — and the overall budgetary context — set the agenda for the upcoming legislative session where fiscal space will be tight but with room for a few tax cuts and reforms. Hutchinson's tax proposals are aimed largely at low- and middle-income Arkansans, including a sales tax reduction on mid-priced used cars. [More]

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]

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]