Tax Reform Task Force Members Nominate Excise Tax Proposals, Vote on Property Tax Proposals, and Prioritize $200 Million of Cuts and Reforms

The Arkansas Tax Reform and Relief Legislative Task Force met again June 20 and 21. The extensive proceedings included consideration of property tax proposals, hearing excise testimony and nominating proposals, and having the members individually attempt to prioritize $200 million of tax reform and relief. The Task Force will meet again this coming Tuesday and Wednesday, June 26 and 27, to work over the results of their individual rankings and to identify which proposals to submit for dynamic scoring. [More]

"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]

Tax Reform Task Force Studies Income Tax Reforms; Members to Make Proposals on May 10

On April 26, 2018, the Arkansas Tax Reform and Relief Legislative Task Force shifted focus from Sales and Use Taxes to Individual and Corporate Income Tax Reform. The Task Force heard testimony on income tax policy from several groups, notably including a northwest Arkansas manufacturer. The Task Force will have an interim meeting May 10 for members to make income tax policy proposals, which then will be considered at the meeting on May 23. [More]