"Virtual Presence" Nexus: Wayfair Overturns Historic Quill Physical Presence Nexus Rule

The much-anticipated United States Supreme Court Wayfair opinion has been issued. In a 5-4 decision, the Court overturned its historic physical presence nexus standard, to be replaced by an inquiry into whether the taxpayer has availed itself of the privilege of carrying on business in the state. The thresholds in the South Dakota tax system were found to meet this test, and the state's tax simplification as part of the Streamlined Sales and Use Tax Agreement (SSUTA) meant that there would not be an undue or discriminatory burden on out-of-state businesses. The case was reversed and remanded for further proceedings, which leave open the option of further challenges but likely will put the South Dakota economic nexus law into effect. [More]

Tax Reform Task Force Keeps Income Tax Proposals Rolling, Identifies Property Tax Proposals, and Mulls Incentives Testimony

The Arkansas Tax Reform and Relief Legislative Task Force met yet again May 23-34, as efforts intensify to push toward substantive recommendations. There were three parts to the meeting: (1) voting on income tax proposals for further consideration, (2) property tax testimony and initial nomination of proposals for study, and (3) economic development incentives testimony from the Arkansas Economic Development Commission. The Task Force Co-Chairs also explained their plans for narrowing the issues under consideration and for working on legislation after the Task Force's Final Report is concluded and ahead of the 2019 Legislative Session. [More]

Tax Reform Task Force Names Income Tax Proposals for Further Study

The Arkansas Tax Reform and Relief Legislative Task Force convened today. The main purpose was to make income tax proposals for further study. The Task Force also heard from the Department of Finance and Administration about certain questions posed at the prior meeting, including significant clarifications and revenue estimates on income tax policy proposals. Next steps for the Task Force process as it heads toward sales tax recommendations were also discussed. [More]

Arkansas Supreme Court Says That Erroneous Assessment Property Tax Appeal Can Proceed

The Arkansas Supreme Court recently issued a pro-taxpayer decision recognizing an erroneous assessment property tax refund claim as a distinct action from a valuation dispute. DeSoto Gathering Company, LLC v. Hill ("DeSoto II"), 2018 Ark. 103 (Mar. 29, 2018). While not an earth-shaking decision, it is heartening to see the Arkansas Supreme Court recognize that an erroneous assessment claim is a viable independent action. [More]

Arkansas Tax Reform Task Force Announces List of Sales Tax Exemptions to Study for Elimination (After Hearing from Policy Experts)

With the fiscal and special sessions concluded, the Tax Reform and Relief Legislative Task Force convened yesterday and today. Yesterday's program consisted of testimony on sales tax policy from the Tax Foundation, the Institute for Tax and Economic Policy, the Arkansas Bureau of Legislative Research (BLR), and the Department of Finance and Administration (DFA). The highlight of today's proceedings was an initial list of specific sales tax exemptions and other policies for further study. Potentially affected stakeholders should take note and consider how to respond. [More]