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]

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]

Catching up: Sandra Cawyer heading DFA's property tax Assessment Coordination Division (ACD)

Earlier this month, on July 7, the Department of Finance and Administration (DFA) announced the appointment of Sandra Cawyer as the Director of the Assessment Coordination Division (ACD). The ACD provides training, coordination, and guidance for local county assessors. She replaces her longstanding predecessor Bear Chaney, who had retired. Director Cawyer comes from Columbia County in south Arkansas (Magnolia), where she has been County Assessor for the past nine years. [More]

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]