All Manufacturers Need to Be Claiming Reduced Sales & Use Tax Rates on Manufacturing Repair Parts and Services

Manufacturers—particularly smaller ones that do not have direct pay permits—need to make sure that they are claiming the benefit of the reduced sales and use tax rate on manufacturing repair parts and services. This is a significant benefit that refunds part of the state-level tax, as a phase-in before full exemption begins July 1, 2022. With a 12-month limitations period for making a claim, taxpayers need processes in place to assure that timely claims are being made. [More]

Arkansas Court of Appeals Upholds Charitable Exemption for Hospital Clinics

In a unanimous opinion, the Court of Appeals has upheld a charitable exemption from property tax for clinics and lots acquired by a charitable hospital. Hardesty v. North Arkansas Medical Services, Inc., 2019 Ark. App. 410 (Sept. 25, 2019). This straightforward opinion reaffirms existing case law about the requirements for charitable exemption for a hospital, which do not include a minimum percentage of charity care. With this decision, Arkansas seems set to avoid the kind of high-stakes property tax controversy that has surrounded hospitals in other states. [More]

Walmart "Dark Store" Case Should Be of Interest to All Arkansas Property Taxpayers

2017 property taxpayer fairness legislation was intended to level the playing field between taxpayers and county assessors, and courts are now grappling with how to apply these changes. The leading case appears to be Walmart's appeal of its 2018 Pulaski County assessments. The taxpayer received an adverse decision in county court, and that decision has now been appealed for de novo proceedings in circuit (trial) court. While the "dark store" issue is somewhat specific to retail, how the courts apply the equalized burdens of proof in practice is of importance to all taxpayers. [More]

What Does Government Transformation Mean for Arkansas Taxpayers?

While Arkansas taxpayers' attention in the 2019 session focused on enactment of tax reform legislation, another major change adopted by the legislature was comprehensive, statewide governmental transformation, in the form of the Transformation and Efficiencies Act of 2019 (Act 910). This is reorganizing the myriad state agencies into 15 cabinet-level agencies, each headed by a secretary. The reorganization was effective July 1, 2019, but—like any merger—the implementation will take months or even years for the complete impact to be felt: One of the selling points of the legislation was that no one would immediately be made redundant, but, over time, it the administration will try to wring out efficiencies through consolidation and shared services. [More]