Arkansas Tax Reform Update: SB576 Amended to Add Rate Cut and Drop Throwback Repeal

The major Arkansas tax reform package, Senate Bill 576, passed out of committee as amended and is heading to the floor of the Senate this week. We covered the package in detail previously. The changes are as follows: Adding a corporate income tax rate cut from 6.5% to 5.9%; Having the NOL carryforward extension be from 5 to 10 years (instead of 5 to 20); Eliminating the repeal of the throwback rule (i.e., the throwback rule would continue to be retained); and Providing safe harbors for marketplace facilitators when relying on information from marketplace sellers. [More]

Property Tax and Multistate Comparison Topics Under Consideration at Tax Reform Task Force

After a lengthy meeting yesterday, today's Arkansas Tax Reform Task Force meeting featured third-party consultant PFM's report on regional tax comparisons, followed by an intensive consideration of property tax issues. The regional comparison was informative but did not raise too many questions. The property tax part of the meeting highlighted several questions and issues, most notably regarding the fiscal impact on school districts from property tax appeals by major taxpayers. [More]