Mission Accomplished: Arkansas Adopts Major Tax Reforms Recommended by Task Force

Last Tuesday, April 9, saw Governor Hutchinson's signing ceremony for a pair of bills comprising many of the Tax Reform and Relief Legislative Task Force's recommended reforms: Act 822 (SB576) requires remote seller collection and provides three major business income tax reforms. Act 819 (SB561) adopts several administrative reforms. Coupled with the individual tax cuts of Act 182 enacted earlier this year, this session has paid off with a comprehensive set of reforms that make significant improvements while fitting sustainably within the state's fiscal and political constraints. [More]

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]