New tax laws going into effect now, later, and into the future

Every year during a legislative session, Arkansas lawmakers consider more than 2,000 bills that could become state law. A heavy percentage of those filings deal with the Arkansas tax code.

Some measures are to bring state law into compliance with federal changes. Others may address unique situations or be a bill brought by a legislator on behalf of a constituent or in line with a certain philosophy.

In the Arkansas regular legislative session earlier this year, senators and representatives considered 66 bills affecting the Arkansas tax code. Some laws take effect right away, some are delayed until after the session, and others may not go into effect until the new year. Research is required to determine deadlines.

Following are the tax-related bills that were filed that made it into law.
• Act 428 to amend the law concerning accountants and to amend the definition of substantial equivalency for the practice of accountancy. This is legislation for the Arkansas State Board of Public Accountancy. The legislation amends the definition of substantial equivalency for the practice of accountancy.
• Act 876 to amend the law concerning the property tax exemption for children, to clarify the requirements for establishing eligibility for the property tax exemption for disabled veterans, surviving spouses and minor dependent children, and for other purposes.
• Act 802 to adopt federal law concerning tax-deferred tuition savings programs and to amend the income tax liability for rollover contributions from an Arkansas Brighter Future 529 plan to a Roth Individual Retirement Account.
• Act 557 to amend the Uniform Money Services Act.
• Act 621 to create a farmer sales tax identification card and to relieve a seller of sales tax remittance liability upon good faith acceptance of a farmer sales tax identification card.
• Act 709 to amend the Arkansas wood energy products and forest maintenance income tax credit.
• Act 1007 to amend the law concerning the gross receipts tax and to create a general sales and use tax exemption for sales to qualified nonprofit organizations.
• Act 1008 to create the grocery tax relief act, to amend the law concerning the sales and use taxes levied on food and food ingredients, as affirmed by Referred Act 19 of 1958, and to exempt groceries from state sales and use taxes.
• Act 497 to provide for certain property to be exempt from taxation and to provide that certain motor vehicles used exclusively for public charity are exempt from personal property tax.
• Act 679 to amend the homestead exemption act and to provide that a homestead owned by a limited liability company is eligible for the homestead exemption in certain circumstances.
• Act 882 to create a modernization and automation tax credit to encourage investment by existing businesses within the state.
• Act 1013 to provide that the lessee of a leased motor vehicle is the owner for purposes of the assessment and payment of property taxes and to amend the law concerning local sales and use taxes on certain tangible personal property.
• Act 696 to provide an income tax exemption for certain payments by the United States Department of Agriculture.
• Act 614 to authorize the Department of Finance and Administration to set the per-mile amount for the income tax deduction for travel and transportation expenses by proclamation.
• Act 161 to reduce the number of employees an employer must have to be mandated to file an annual income tax withholding statement electronically and to require the electronic filing of a withholding return for certain employers.
• Act 617 to amend The Independent Tax Appeals Commission Act.
• Act 701 to amend the Arkansas wood energy products and forest maintenance income tax credit.
• Act 719 to amend and modernize the law concerning the apportionment of income derived from multistate operations and to change the method for sourcing of receipts for services and intangibles.
• Act 1012 to amend the law concerning the taxes applicable to lithium extraction and development, to provide a sales and use tax exemption for lithium resource development and to amend the law concerning the severance tax on lithium.
• Act 720 to amend the law concerning local sales and use taxes and to require the Department of Finance and Administration to notify local governments concerning sales and use taxes that are set to expire.
• Act 548 to amend the Sales and Use Tax Exemption for data centers.
• Act 881 to amend the Consolidated Incentive Act of 2003, to create an income tax credit for relocating corporate headquarters to this state and to encourage corporations to relocate to Arkansas.