"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]

Tax Reform Task Force Keeps Income Tax Proposals Rolling, Identifies Property Tax Proposals, and Mulls Incentives Testimony

The Arkansas Tax Reform and Relief Legislative Task Force met yet again May 23-34, as efforts intensify to push toward substantive recommendations. There were three parts to the meeting: (1) voting on income tax proposals for further consideration, (2) property tax testimony and initial nomination of proposals for study, and (3) economic development incentives testimony from the Arkansas Economic Development Commission. The Task Force Co-Chairs also explained their plans for narrowing the issues under consideration and for working on legislation after the Task Force's Final Report is concluded and ahead of the 2019 Legislative Session. [More]

Tax Reform Task Force Names Income Tax Proposals for Further Study

The Arkansas Tax Reform and Relief Legislative Task Force convened today. The main purpose was to make income tax proposals for further study. The Task Force also heard from the Department of Finance and Administration about certain questions posed at the prior meeting, including significant clarifications and revenue estimates on income tax policy proposals. Next steps for the Task Force process as it heads toward sales tax recommendations were also discussed. [More]

Tax Reform Task Force Studies Income Tax Reforms; Members to Make Proposals on May 10

On April 26, 2018, the Arkansas Tax Reform and Relief Legislative Task Force shifted focus from Sales and Use Taxes to Individual and Corporate Income Tax Reform. The Task Force heard testimony on income tax policy from several groups, notably including a northwest Arkansas manufacturer. The Task Force will have an interim meeting May 10 for members to make income tax policy proposals, which then will be considered at the meeting on May 23. [More]

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]