The recent Court of Appeals decision in David L. Eddy, P.A. v. Haley, 2020 Ark. App. 430 (Sept. 23, 2020), continues a trend of Arkansas courts recognizing county courts as judicial venues with broad jurisdiction over property tax cases. Taxpayers weighing lawsuits relating to property taxes should consider whether jurisdiction for the initial suit lies in county court instead of circuit court. Arkansas county courts are unusual venues in which the County Judge, the chief…

The Arkansas Department of Finance and Administration (DFA) has updated its “Frequently Asked Questions Regarding the Impact of Coronavirus (COVID-19)” (rev. Sept. 18, 2020) to specify that receipt of an Arkansas Ready for Business grant is taxable income for Arkansas income tax purposes. This guidance is unsurprising given the general framework of Arkansas income tax, although it conceivably could be changed by legislation in the upcoming legislative session. Recall that Arkansas Ready for Business grants were an innovative, quickly-deployed mechanism…

Arkansas’s longstanding donation of equipment tax credit program to encourage partnerships between industry and higher education was substantially expanded in the 2019 session to allow the credit for cash donations instead of only in-kind donations. Effective June 29, 2020, the Arkansas Economic Development Commission has promulgated rules for the program, which is fully operational. Businesses that collaborate with state community colleges or universities for training or research should leverage this program to generate income tax credits equal to 33%…

Earlier this month, on July 7, the Department of Finance and Administration (DFA) announced the appointment of Sandra Cawyer as the Director of the Assessment Coordination Division (ACD). The ACD provides training, coordination, and guidance for local county assessors. She replaces her longstanding predecessor Bear Chaney, who had retired. Director Cawyer comes from Columbia County in south Arkansas (Magnolia), where she has been County Assessor for the past nine years. ACD has seen changes in…

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. Legal opinion 20200327 (Jun. 11, 2020) advises that coronavirus cleaning and…

(Note: This post was updated in the early afternoon of May 4 based on new guidance from the governor and AEDC.) Arkansas businesses that did not previously apply should get ready today to apply for Arkansas Ready for Business grants tomorrow or Wednesday, May 5-6. 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…

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. Overview: The grants are for expenses…