Taxing the Coronavirus Economy: Arkansas DFA Opines that Disinfecting Services and Videoconferencing Are Taxable

Recent weeks have seen a high volume of Arkansas Department of Finance and Administration (DFA) legal opinions and hearing decisions being published. This includes a pair of opinions regarding sales tax on services in high demand during the coronavirus epidemic: disinfecting / deep cleaning and videoconferencing. DFA Revenue Legal Counsel has advised that both are taxable, as cleaning and janitorial services and telecommunications services respectively. [More]

Get Ready for Round 2 of Arkansas Ready for Business Grants!

Arkansas businesses that did not previously apply should get ready today to apply quickly tomorrow, May 5, for Arkansas Ready for Business grants. These are $1,000-per-employee grants that can be used for PPE, disinfection deep cleaning, and other health and safety equipment or services related to opening or operating a business during the coronavirus epidemic (see our prior post for details). Very small (50 employees or under) or women/minority-owned businesses should especially consider applying because of funding set-asides. Applications may continue to be first-come first-served, so businesses should apply as soon at the application system opens tomorrow, May 5. (We will update this post as additional details become available.) [More]

$15 Million Arkansas Ready for Business Grant Program Starts (and Finishes) Taking Applications Today

Today Governor Hutchinson announced a new $15 million grant program to be administered by the Arkansas Economic Development Commission to help businesses with costs associated with assuring the health and safety of employees and patrons during the coronavirus epidemic. Applications begin today, April 29, at 5:00 p.m. Given the pattern of coronavirus relief funding being used up quickly (think federal SBA PPP funding), interested businesses should apply as soon as possible. [More]

Arkansas COVID-19 guidance on estimated payments and nontaxability of Recovery Rebates; possible exemption for agricultural Market Facilitation Payments

There are handful of updates since our detailed coverage of Arkansas tax filing and payment extensions associated with COVID-19: (1) 2020 Q1 Arkansas income tax estimated payment guidance, (2) nontaxability of IRS stimulus checks; and (3) possible exemption from income tax of USDA Market Facilitation Program payments. [More]

Arkansas DFA legal opinion effectively adopts convenience of the employer test

With telework on the rise, the state taxation of remote employees has become a hot issue. The Arkansas Department of Finance and Administration has now published Revenue Legal Counsel Opinion no. 20200203 (Feb. 20, 2020), which adopts what is effectively a "convenience of the employer" test imposing income tax on remote, out-of-state employee income where the employee is working for an Arkansas-based office. This policy marks an apparent reversal of the position laid out in DFA's Individual Income Tax Regulation 1.26-52-202(c), which requires allocation of nonresident employment income based on where the work was performed. [More]