Arkansas Tax Reform Task Force Approves Final Report and Hears DFA's "2-4-5.9/6.5%" Individual Tax Cuts Plan

The Arkansas Tax Reform and Relief Legislative Task Force met last week on August 22 and 23 to review the draft final report and hear additional testimony. The final report was approved without issue. The highlight of the testimony was a thoughtfully designed new plan presented by the Department of Finance and Administration (DFA) that would significantly simplify and cut individual income taxes. [More]

Acting Revenue Commissioner Gehring, Regulation Revisions, and Other News from Tax Advisory Council Meeting

The Arkansas Tax Advisory Council (TAC), an advisory group comprised of DFA leadership and tax professionals, convened for its quarterly meeting on August 14. Leadership from DFA provided an update that Assistant Commissioner Paul Gehring is acting as Commissioner of Revenue while Commissioner Walter Anger is out of the office recovering from a medical situation. In other news, the TAC also heard an update on planned revisions to DFA rules. Proposed major updates to the general sales and use tax rules are expected in the next few months, likely sometime in September or October. The TAC also discussed Wayfair and Arkansas's response. [More]

Dynamic Revenue Modeling Testimony Raises More Questions Than It Answers

The Arkansas Tax Reform and Relief Legislative Task Force met today (August 6) to hear the results of its contracted dynamic revenue modeling. The results were not groundbreaking and generally showed that the state could expect that the net costs of its proposed tax cuts and reforms should be somewhat less than the static revenue impacts projected by the Department of Finance and Administration ("DFA"), perhaps something on the order of 5% depending on the specific proposals and modeling assumptions. The business community should be concerned that the dynamic scoring will skew the Task Force's recommendations more toward income tax rate cuts rather than including the apportionment, net operating losses (NOLs), and inventory tax reforms that are vital for encouraging Arkansas investment from multistate businesses. [More]