Major Arkansas Tax Reform Bill Introduced: Remote Seller Collection, Apportionment, and NOLs

A major tax bill was introduced today that, if enacted, will make the Arkansas tax system fairer and much more competitive. Senate Bill 576 (SB 576) includes: (1) sales tax collection by remote sellers and marketplace facilitators; (2) single sales factor apportionment and repeal of the throwback rule; (3) extension of the net operating loss (NOL) carryforward limit from 5 years to 20 years; and (4) substitution of a car wash water use fee for the current sales tax on car washes. These reforms are a culmination of the two-year Tax Reform and Relief Legislative Task Force process and would create a much more favorable tax climate for many Arkansas businesses --particularly manufacturers, retailers, wholesalers, and banks. Interested taxpayers need to get involved to support the bill as it enters into a hurried final weeks of the legislative session. [More]