Tax Reform and Relief Task Force Tries to Prioritize But Hits a Snag

The Tax Reform and Relief Task Force met on Wednesday, June 26, and two days of scheduled meetings were reduced to a short two-hour morning session. Mid-way through the Agenda the co-chairs announced that the Department of Finance and Administration had discovered a major error in the projected cost of income tax reforms that is sure to have an impact on Task Force recommendations. [More]

How Will Arkansas Respond to the Wayfair Decision?

With the recent Supreme Court decision in Wayfair having removed the traditional physical presence nexus rule, states are determining how to respond and move ahead in ramping up efforts to collect sales and use taxes from remote sellers. While Arkansas does not have a South Dakota-style economic nexus status on the books and ready to come into effect, as a Streamlined Sales Tax state, Arkansas is well positioned to adopt a regulatory or statutory change to require remote sellers to collect tax. [More]

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]