Legislative Task Force Pares List of Sales/Use Tax Reform Proposals from 43 to 7

Arkansas’ Tax Reform and Relief Legislative Task Force met on April 25 and 26 to review 43 possible changes to state sales and use tax laws. After several months of preliminaries and presentations, this meeting was the first opportunity Task Force members have had to begin seriously identifying and refining recommendations for the Task Force Report due to the Governor on September 1. The meeting saw only 7 proposals retained for further study, among which the proposed elimination of the partial grocery tax exemption would have by far the biggest impact. [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]

Flash Inventory? Thoughts on the FLIS Enterprises Withdrawals from Stock Analysis

While the Arkansas Supreme Court's recent decision in Walther v. FLIS Enterprises, Inc., 2018 Ark. 64 was mostly watched for its ruling that sovereign immunity is not jurisdictional, it went on the grapple with the substantive tax question: whether the tax base for gross receipts tax on a fast food franchisee's free meals given to employees is the cost of the ingredients or the menu price of the meals. The Supreme Court reversed the trial court and ruled in favor of the Department that the tax base is the menu price. [More]