Arkansas DFA now posting opinions, decisions online

The Arkansas Department of Finance and Administration has begun publishing online copies of legal opinions and hearing decisions. The publications began occurring Jan. 1 as a result of Act 896 of 2015.

Under the law, identifying facts and information deemed to be confidential by the DFA director are redacted, and administrative appeals settled or withdrawn before a final determination is made aren’t posted. The director can post a synopsis of the opinion or decision online, or DFA can provide a synopsis online if a copy is provided upon request.

Opinions are available at this link.

So far, no decisions and only one legal opinion have been posted: one dated Dec. 18, 2015, regarding a request for an opinion from an Arkansas nonprofit corporation requesting a sales tax exemption for educational DVDs that the nonprofit was selling on its website.

The posting includes the request and the response. The requester argued that sales should be exempt from taxes because the DVD is the only product for sale and is produced and offered only by the nonprofit.

Michael Baker, a DFA revenue legal counsel, informed the writer that the sales were not exempt under Arkansas law. The requester did not qualify as a charitable organization for the purposes of the exemption because its function wasn’t charitable and would not have to be performed at public expense if the organization did not provide it. Even if it did qualify, the sales would not be exempt. The sales would compete with sales by for-profit businesses because they would be available more than three times a year, and because purchasers of the DVDs would be doing so in order to obtain the product, not make a charitable donation.

The bill creating the online posting of DFA decisions was drafted by the Arkansas State Chamber of Commerce/Associated Industries of Arkansas and the Bureau of Legislative Research and sponsored by Sen. Bill Sample, R-Hot Springs.

Randy Zook, CEO and president of the State Chamber, said the Chamber’s tax committee, composed primarily of tax lawyers and accountants, spearheaded the effort because DFA opinions and decisions weren’t readily available even though they set precedents for later actions. Zook said the Chamber is “very pleased” with DFA’s response.

“This is a significant step forward in tax administration. It makes the process more transparent, and it makes it more even-handed as more and more taxpayers and tax-preparers have access to this information.”