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]

Arkansas DFA legal opinion effectively adopts convenience of the employer test

With telework on the rise, the state taxation of remote employees has become a hot issue. The Arkansas Department of Finance and Administration has now published Revenue Legal Counsel Opinion no. 20200203 (Feb. 20, 2020), which adopts what is effectively a "convenience of the employer" test imposing income tax on remote, out-of-state employee income where the employee is working for an Arkansas-based office. This policy marks an apparent reversal of the position laid out in DFA's Individual Income Tax Regulation 1.26-52-202(c), which requires allocation of nonresident employment income based on where the work was performed. [More]