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]

They Pulled It Off: Tax Reform Task Force Picks Preferred Individual Tax Cuts Plan, Approves Draft Legislation Package, and Adjourns

The Arkansas Tax Reform and Relief Legislative Task Force has concluded its 20 months of proceedings by approving draft legislation for a roughly $400 million tax reform and relief package that should guide the state's tax policy for the next decade. If implemented, it will provide Arkansas with a fairer and more competitive tax system while maintaining the state's fiscal stability. The next step will be to see the proposals through and further refine them as part of the regular legislative process in 2019. [More]