Arkansas Creates the Independent Tax Appeals Commission

In a landmark development for the Arkansas tax system, Governor Hutchinson has signed Act 586 (HB1468) to establish an independent Arkansas Tax Appeals Commission. The legislation was sponsored by Rep. Joe Jett and Sen. Blake Johnson and also closely supported by Sen. Jonathan Dismang. The Commission will provide a neutral panel of experienced tax professionals to hear and resolve taxpayer disputes with the Department of Finance and Administration (DFA). It will be established by July 2022 and will begin hearing cases in January 2023. [More]

Arkansas Taxpayer Alert: Troubling Local Sales Tax Disclosure and Reporting Bill (SB293)

Arkansas business taxpayers should be concerned about SB293, which would dramatically change administration of certain sales tax refunds and rebates to require disclosure to local cities and counties. This would substantially erode taxpayer confidentiality protections and the additional compliance costs will likely cost taxpayers millions of dollars. Concerned taxpayers may wish to contact their legislators — the bill is scheduled to be heard by Senate Revenue & Tax tomorrow, February 24. [More]

Significant Small Business Tax Relief Bills Pending in the Arkansas Legislature: Coronavirus Aid and SALT Deduction Parity

Two significant proposals for tax relief for small businesses are making their way through the Arkansas General Assembly that promise hundreds of millions of dollars of tax relief: (1) conformity to federal tax exemptions for PPP loan forgiveness and other coronavirus aid and (2) creating an elective tax regime to allow federal deductibility of Arkansas income tax. Similar proposals are being adopted in other states. Interested small business taxpayers should consult with their tax advisors about the potential benefits and may wish to contact their legislators about supporting the bills. [More]

Arkansas Independent Tax Appeals Commission Legislation Introduced!

HB1468 was filed today to establish an independent Arkansas Tax Appeals Commission that would replace the current internal appeals function at the Department of Finance and Administration, which has been very deferential to DFA audit and legal positions. The bill is sponsored by Rep. Joe Jett and Sen. Blake Johnson. The Arkansas Tax Appeals Commission would be made up of three commissioners, including a Chief Commissioner coming from the private-sector. It promises a streamlined and fairer system for Arkansas taxpayers. [More]

Governor's 2022 Budget Plans for $50 Million of Tax Cuts

On November 10, Governor Hutchinson announced several tax proposals for his legislative agenda as part of the FYE 2022 budget (Arkansas's fiscal year runs from July to June). These proposals — and the overall budgetary context — set the agenda for the upcoming legislative session where fiscal space will be tight but with room for a few tax cuts and reforms. Hutchinson's tax proposals are aimed largely at low- and middle-income Arkansans, including a sales tax reduction on mid-priced used cars. [More]