Ark. Code Ann. § 26-51-1402 — AR Code / Title 26 / Chapter 51 / Subchapter 14 / Section 26-51-1402
Definitions
Status: in_force

As used in this subchapter, unless the context otherwise requires: (1) "Billing address" means the location indicated in the books and records of the taxpayer on the first day of the taxable year, or on such later date in the taxable year when the customer relationship began, as the address where any notice, statement, or bill relating to a customer's account is mailed; (2) "Borrower or credit card holder located in this state" means: (A) A borrower, other than a credit card holder, that is engaged in a trade or business which maintains its commercial domicile in this state; or (B) A borrower that is not engaged in a trade or business or a credit card holder whose billing address is in this state; (3) "Commercial domicile" means: (A) The headquarters of the trade or business, that is, the place from which the trade or business is principally managed and directed; or (B) If a taxpayer is organized under the laws of a foreign country, or of the Commonwealth of Puerto Rico, or any territory or possession of the United States, such taxpayer's commercial domicile shall be deemed for the purposes of this subchapter to be the state of the United States or the District of Columbia from which such taxpayer's trade or business in the United States is principally managed and directed. It shall be presumed, subject to rebuttal, that the location from which the taxpayer's trade or business is principally managed and directed is the state of the United States or the District of Columbia to which the greatest number of employees are regularly connected or out of which they are working, irrespective of where the services of such employees are performed, as of the last day of the taxable year; (4) "Credit card" means a credit, travel, or entertainment card; (5) "Credit card issuer's reimbursement fee" means the fee a taxpayer receives from a merchant's bank because one (1) of the persons to whom the taxpayer has issued a credit card has charged merchandise or services to the credit card; (6) "Employee" means, with respect to a particular taxpayer, any individual who, under the usual common law rules applicable in determining the employer-employee relationship, has the status of an employee of that taxpayer; (7) "Financial institution" means: (A) Any corporation or other business entity registered under state law as a bank holding company or registered under the Bank Holding Company Act of 1956, 12 U.S.C. § 1841 et seq., as amended and in effect January 1, 1995, or registered as a savings and loan holding company under the National Housing Act, 12 U.S.C. § 1701 et seq., as amended and in effect January 1, 1995; (B) A national bank organized and existing as a national bank association pursuant to the provisions of The National Bank Act, 12 U.S.C. § 21 et seq., as in effect January 1, 1995; (C) A savings association or federal savings bank as defined in the Federal Deposit Insurance Act, 12 U.S.C. § 1813(b)(1) , as in effect January 1, 1995; (D) Any bank or thrift institution incorporated or organized under the laws of any state; (E) Any corporation organized under the provisions of 12 U.S.C. §§ 611 - 631 , as in effect January 1, 1995; (F) Any agency or branch of a foreign depository as defined in 12 U.S.C. § 3101 , as in effect January 1, 1995; (G) A production credit association organized under the Farm Credit Act of 1933, 12 U.S.C. § 1131 et seq. [repealed], as in effect January 1, 1995, all of whose stock held by the Federal Production Credit Corporation has been retired; (H) Any corporation whose voting stock is more than fifty percent (50%) owned, directly or indirectly, by any person or business entity described in subdivisions (7)(A)-(G) of this section other than an insurance company taxable under § 26-57-601 et seq.; (I) (i) A corporation or other business entity that derives more than fifty percent (50%) of its total gross income for financial accounting purposes from finance leases. (ii) As used in this subdivision (7)(I), "finance lease" means any lease transaction which is the functional equivalent of an extension of credit and that transfers substantially all of the benefits and risks incident to the ownership of property. "Finance lease" includes any "direct financing lease" or "leverage lease" that meets the criteria of Financial Accounting Standards Board Statement No. 13, "Accounting for Leases", as in effect January 1, 1995, or any other lease that is accounted for as a financing by a lessor under generally accepted accounting principles. (iii) For this classification to apply: (a) The average of the gross income in the current tax year and immediately preceding two (2) tax years must satisfy the more-than-fifty-percent requirement; and (b) Gross income from incidental or occasional transactions shall be disregarded; and (J) (i) Any other person or business entity, other than insurance companies, real estate brokers, or securities dealers taxable under § 26-51-205 , which derives more than fifty percent (50%) of its gross income from activities that a person described in subdivisions (7)(B)-(G) and (I) of this section is authorized to transact. (ii) For the purpose of this subdivision (7)(J), the computation of gross income shall not include income from nonrecurring, extraordinary items. (iii) The Secretary of the Department of Finance and Administration is authorized to exclude any person from the application of this subdivision (7)(J) upon such person's proving, by clear and convincing evidence, that the income-producing activity of such person is not in substantial competition with those persons described in subdivisions (7)(B)-(G) and (I) of this section; (8) (A) "Loan" means any extension of credit resulting from direct negotiations between the taxpayer and its customer, and/or the purchase, in whole or in part, of such extension of credit from another. (B) "Loan" includes participations, syndications, and leases treated as loans for federal income tax purposes under the Internal Revenue Code, 26 U.S.C. § 1 et seq., as in effect January 1, 1995. (C) "Loan" does not include: (i) Properties treated as loans under 26 U.S.C. § 595 [repealed], as in effect January 1, 1995; (ii) Futures or forward contracts; (iii) Options; (iv) Notional principal contracts such as swaps; (v) Credit card receivables, including purchased credit card relationships; (vi) Noninterest-bearing balances due from depository institutions; (vii) Cash items in the process of collection; (viii) Federal funds sold; (ix) Securities purchased under agreements to resell; (x) Assets held in a trading account; (xi) Securities; (xii) Interests in a real estate mortgage investment conduit, as defined by the Internal Revenue Code, 26 U.S.C. § 1 et seq., as in effect January 1, 1995, or other mortgage-backed or asset-backed security; and (xiii) Other similar items; (9) "Loan secured by real property" means that fifty percent (50%) or more of the aggregate value of the collateral used to secure a loan or other obligation, when valued at fair market value as of the time the original loan or obligation was incurred, was real property; (10) "Merchant discount" means the fee or negotiated discount charged to a merchant by the taxpayer for the privilege of participating in a program whereby a credit card is accepted in payment for merchandise or services sold to the card holder; (11) "Participation" means an extension of credit in which an undivided ownership interest is held on a pro rata basis in a single loan or pool of loans and related collateral. In a loan participation, the credit originator initially makes the loan and then subsequently resells all or a portion of it to other lenders. The participation may or may not be known to the borrower; (12) "Person" means an individual, estate, trust, partnership, limited liability company, corporation, and any other business entity; (13) (A) "Principal base of operations", with respect to transportation property, means the place of more or less permanent nature from which said property is regularly directed or controlled. (B) "Principal base of operations" means, with respect to an employee, the place of more or less permanent nature from which the employee regularly: (i) Starts his or her work and to which he or she customarily returns in order to receive instructions from his or her employer; (ii) Communicates with his or her customers or other persons; or (iii) Performs any other functions necessary to the exercise of his or her trade or profession at some other point or points; (14) (A) "Real property owned" and "tangible personal property owned" mean real and tangible personal property, respectively: (i) On which the taxpayer may claim depreciation for federal income tax purposes, pursuant to the Internal Revenue Code, 26 U.S.C. § 1 et seq., as in effect January 1, 1995; or (ii) Property to which the taxpayer holds legal title and on which no other person may claim depreciation for federal income tax purposes, pursuant to the Internal Revenue Code, 26 U.S.C. § 1 et seq., as in effect January 1, 1995, or could claim depreciation if subject to federal income tax, pursuant to the Internal Revenue Code, 26 U.S.C. § 1 et seq., as in effect January 1, 1995. (B) "Real property owned" and "tangible personal property owned" do not include coin, currency, or property acquired in lieu of or pursuant to a foreclosure; (15) "Regular place of business" means an office at which the taxpayer carries on its business in a regular and systematic manner and which is continuously maintained, occupied, and used by employees of the taxpayer; (16) "State" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, or any foreign country; (17) "Syndication" means an extension of credit in which two (2) or more persons fund and each person is at risk only up to a specified percentage of the total extension of credit or up to a specified dollar amount; (18) "Taxable" means either: (A) That a taxpayer is subject in another state to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, a corporate stock tax, including a bank shares tax, a single business tax, or an earned surplus tax, or any tax which is imposed upon or measured by net income; or (B) That another state has jurisdiction to subject the taxpayer to any of such taxes regardless of whether, in fact, the state does or does not; and (19) "Transportation property" means vehicles and vessels capable of moving under their own power such as aircraft, trains, water vessels, and motor vehicles, as well as any equipment or containers attached to such property, such as rolling stock, barges, trailers, or the like. Amended by Act 2019, No. 822,§ 12, eff. 1/1/2021. Amended by Act 2019, No. 822,§ 11, eff. 1/1/2021. Acts 1995, No. 495, § 1.

As used in this subchapter, unless the context otherwise requires:

(1) "Billing address" means the location indicated in the books and records of the taxpayer on the first day of the taxable year, or on such later date in the taxable year when the customer relationship began, as the address where any notice, statement, or bill relating to a customer's account is mailed;

(2) "Borrower or credit card holder located in this state" means: (A) A borrower, other than a credit card holder, that is engaged in a trade or business which maintains its commercial domicile in this state; or (B) A borrower that is not engaged in a trade or business or a credit card holder whose billing address is in this state;

(A) A borrower, other than a credit card holder, that is engaged in a trade or business which maintains its commercial domicile in this state; or

(B) A borrower that is not engaged in a trade or business or a credit card holder whose billing address is in this state;

(3) "Commercial domicile" means: (A) The headquarters of the trade or business, that is, the place from which the trade or business is principally managed and directed; or (B) If a taxpayer is organized under the laws of a foreign country, or of the Commonwealth of Puerto Rico, or any territory or possession of the United States, such taxpayer's commercial domicile shall be deemed for the purposes of this subchapter to be the state of the United States or the District of Columbia from which such taxpayer's trade or business in the United States is principally managed and directed. It shall be presumed, subject to rebuttal, that the location from which the taxpayer's trade or business is principally managed and directed is the state of the United States or the District of Columbia to which the greatest number of employees are regularly connected or out of which they are working, irrespective of where the services of such employees are performed, as of the last day of the taxable year;

(A) The headquarters of the trade or business, that is, the place from which the trade or business is principally managed and directed; or

(B) If a taxpayer is organized under the laws of a foreign country, or of the Commonwealth of Puerto Rico, or any territory or possession of the United States, such taxpayer's commercial domicile shall be deemed for the purposes of this subchapter to be the state of the United States or the District of Columbia from which such taxpayer's trade or business in the United States is principally managed and directed. It shall be presumed, subject to rebuttal, that the location from which the taxpayer's trade or business is principally managed and directed is the state of the United States or the District of Columbia to which the greatest number of employees are regularly connected or out of which they are working, irrespective of where the services of such employees are performed, as of the last day of the taxable year;

(4) "Credit card" means a credit, travel, or entertainment card;

(5) "Credit card issuer's reimbursement fee" means the fee a taxpayer receives from a merchant's bank because one (1) of the persons to whom the taxpayer has issued a credit card has charged merchandise or services to the credit card;

(6) "Employee" means, with respect to a particular taxpayer, any individual who, under the usual common law rules applicable in determining the employer-employee relationship, has the status of an employee of that taxpayer;

(7) "Financial institution" means: (A) Any corporation or other business entity registered under state law as a bank holding company or registered under the Bank Holding Company Act of 1956, 12 U.S.C. § 1841 et seq., as amended and in effect January 1, 1995, or registered as a savings and loan holding company under the National Housing Act, 12 U.S.C. § 1701 et seq., as amended and in effect January 1, 1995; (B) A national bank organized and existing as a national bank association pursuant to the provisions of The National Bank Act, 12 U.S.C. § 21 et seq., as in effect January 1, 1995; (C) A savings association or federal savings bank as defined in the Federal Deposit Insurance Act, 12 U.S.C. § 1813(b)(1) , as in effect January 1, 1995; (D) Any bank or thrift institution incorporated or organized under the laws of any state; (E) Any corporation organized under the provisions of 12 U.S.C. §§ 611 - 631 , as in effect January 1, 1995; (F) Any agency or branch of a foreign depository as defined in 12 U.S.C. § 3101 , as in effect January 1, 1995; (G) A production credit association organized under the Farm Credit Act of 1933, 12 U.S.C. § 1131 et seq. [repealed], as in effect January 1, 1995, all of whose stock held by the Federal Production Credit Corporation has been retired; (H) Any corporation whose voting stock is more than fifty percent (50%) owned, directly or indirectly, by any person or business entity described in subdivisions (7)(A)-(G) of this section other than an insurance company taxable under § 26-57-601 et seq.; (I) (i) A corporation or other business entity that derives more than fifty percent (50%) of its total gross income for financial accounting purposes from finance leases. (ii) As used in this subdivision (7)(I), "finance lease" means any lease transaction which is the functional equivalent of an extension of credit and that transfers substantially all of the benefits and risks incident to the ownership of property. "Finance lease" includes any "direct financing lease" or "leverage lease" that meets the criteria of Financial Accounting Standards Board Statement No. 13, "Accounting for Leases", as in effect January 1, 1995, or any other lease that is accounted for as a financing by a lessor under generally accepted accounting principles. (iii) For this classification to apply: (a) The average of the gross income in the current tax year and immediately preceding two (2) tax years must satisfy the more-than-fifty-percent requirement; and (b) Gross income from incidental or occasional transactions shall be disregarded; and (J) (i) Any other person or business entity, other than insurance companies, real estate brokers, or securities dealers taxable under § 26-51-205 , which derives more than fifty percent (50%) of its gross income from activities that a person described in subdivisions (7)(B)-(G) and (I) of this section is authorized to transact. (ii) For the purpose of this subdivision (7)(J), the computation of gross income shall not include income from nonrecurring, extraordinary items. (iii) The Secretary of the Department of Finance and Administration is authorized to exclude any person from the application of this subdivision (7)(J) upon such person's proving, by clear and convincing evidence, that the income-producing activity of such person is not in substantial competition with those persons described in subdivisions (7)(B)-(G) and (I) of this section;

(A) Any corporation or other business entity registered under state law as a bank holding company or registered under the Bank Holding Company Act of 1956, 12 U.S.C. § 1841 et seq., as amended and in effect January 1, 1995, or registered as a savings and loan holding company under the National Housing Act, 12 U.S.C. § 1701 et seq., as amended and in effect January 1, 1995;

(B) A national bank organized and existing as a national bank association pursuant to the provisions of The National Bank Act, 12 U.S.C. § 21 et seq., as in effect January 1, 1995;

(C) A savings association or federal savings bank as defined in the Federal Deposit Insurance Act, 12 U.S.C. § 1813(b)(1) , as in effect January 1, 1995;

(D) Any bank or thrift institution incorporated or organized under the laws of any state;

(E) Any corporation organized under the provisions of 12 U.S.C. §§ 611 - 631 , as in effect January 1, 1995;

(F) Any agency or branch of a foreign depository as defined in 12 U.S.C. § 3101 , as in effect January 1, 1995;

(G) A production credit association organized under the Farm Credit Act of 1933, 12 U.S.C. § 1131 et seq. [repealed], as in effect January 1, 1995, all of whose stock held by the Federal Production Credit Corporation has been retired;

(H) Any corporation whose voting stock is more than fifty percent (50%) owned, directly or indirectly, by any person or business entity described in subdivisions (7)(A)-(G) of this section other than an insurance company taxable under § 26-57-601 et seq.;

(I) (i) A corporation or other business entity that derives more than fifty percent (50%) of its total gross income for financial accounting purposes from finance leases. (ii) As used in this subdivision (7)(I), "finance lease" means any lease transaction which is the functional equivalent of an extension of credit and that transfers substantially all of the benefits and risks incident to the ownership of property. "Finance lease" includes any "direct financing lease" or "leverage lease" that meets the criteria of Financial Accounting Standards Board Statement No. 13, "Accounting for Leases", as in effect January 1, 1995, or any other lease that is accounted for as a financing by a lessor under generally accepted accounting principles. (iii) For this classification to apply: (a) The average of the gross income in the current tax year and immediately preceding two (2) tax years must satisfy the more-than-fifty-percent requirement; and (b) Gross income from incidental or occasional transactions shall be disregarded; and

(i) A corporation or other business entity that derives more than fifty percent (50%) of its total gross income for financial accounting purposes from finance leases.

(ii) As used in this subdivision (7)(I), "finance lease" means any lease transaction which is the functional equivalent of an extension of credit and that transfers substantially all of the benefits and risks incident to the ownership of property. "Finance lease" includes any "direct financing lease" or "leverage lease" that meets the criteria of Financial Accounting Standards Board Statement No. 13, "Accounting for Leases", as in effect January 1, 1995, or any other lease that is accounted for as a financing by a lessor under generally accepted accounting principles.

(iii) For this classification to apply: (a) The average of the gross income in the current tax year and immediately preceding two (2) tax years must satisfy the more-than-fifty-percent requirement; and (b) Gross income from incidental or occasional transactions shall be disregarded; and

(a) The average of the gross income in the current tax year and immediately preceding two (2) tax years must satisfy the more-than-fifty-percent requirement; and

(b) Gross income from incidental or occasional transactions shall be disregarded; and

(J) (i) Any other person or business entity, other than insurance companies, real estate brokers, or securities dealers taxable under § 26-51-205 , which derives more than fifty percent (50%) of its gross income from activities that a person described in subdivisions (7)(B)-(G) and (I) of this section is authorized to transact. (ii) For the purpose of this subdivision (7)(J), the computation of gross income shall not include income from nonrecurring, extraordinary items. (iii) The Secretary of the Department of Finance and Administration is authorized to exclude any person from the application of this subdivision (7)(J) upon such person's proving, by clear and convincing evidence, that the income-producing activity of such person is not in substantial competition with those persons described in subdivisions (7)(B)-(G) and (I) of this section;

(i) Any other person or business entity, other than insurance companies, real estate brokers, or securities dealers taxable under § 26-51-205 , which derives more than fifty percent (50%) of its gross income from activities that a person described in subdivisions (7)(B)-(G) and (I) of this section is authorized to transact.

(ii) For the purpose of this subdivision (7)(J), the computation of gross income shall not include income from nonrecurring, extraordinary items.

(iii) The Secretary of the Department of Finance and Administration is authorized to exclude any person from the application of this subdivision (7)(J) upon such person's proving, by clear and convincing evidence, that the income-producing activity of such person is not in substantial competition with those persons described in subdivisions (7)(B)-(G) and (I) of this section;

(8) (A) "Loan" means any extension of credit resulting from direct negotiations between the taxpayer and its customer, and/or the purchase, in whole or in part, of such extension of credit from another. (B) "Loan" includes participations, syndications, and leases treated as loans for federal income tax purposes under the Internal Revenue Code, 26 U.S.C. § 1 et seq., as in effect January 1, 1995. (C) "Loan" does not include: (i) Properties treated as loans under 26 U.S.C. § 595 [repealed], as in effect January 1, 1995; (ii) Futures or forward contracts; (iii) Options; (iv) Notional principal contracts such as swaps; (v) Credit card receivables, including purchased credit card relationships; (vi) Noninterest-bearing balances due from depository institutions; (vii) Cash items in the process of collection; (viii) Federal funds sold; (ix) Securities purchased under agreements to resell; (x) Assets held in a trading account; (xi) Securities; (xii) Interests in a real estate mortgage investment conduit, as defined by the Internal Revenue Code, 26 U.S.C. § 1 et seq., as in effect January 1, 1995, or other mortgage-backed or asset-backed security; and (xiii) Other similar items;

(A) "Loan" means any extension of credit resulting from direct negotiations between the taxpayer and its customer, and/or the purchase, in whole or in part, of such extension of credit from another.

(B) "Loan" includes participations, syndications, and leases treated as loans for federal income tax purposes under the Internal Revenue Code, 26 U.S.C. § 1 et seq., as in effect January 1, 1995.

(C) "Loan" does not include: (i) Properties treated as loans under 26 U.S.C. § 595 [repealed], as in effect January 1, 1995; (ii) Futures or forward contracts; (iii) Options; (iv) Notional principal contracts such as swaps; (v) Credit card receivables, including purchased credit card relationships; (vi) Noninterest-bearing balances due from depository institutions; (vii) Cash items in the process of collection; (viii) Federal funds sold; (ix) Securities purchased under agreements to resell; (x) Assets held in a trading account; (xi) Securities; (xii) Interests in a real estate mortgage investment conduit, as defined by the Internal Revenue Code, 26 U.S.C. § 1 et seq., as in effect January 1, 1995, or other mortgage-backed or asset-backed security; and (xiii) Other similar items;

(i) Properties treated as loans under 26 U.S.C. § 595 [repealed], as in effect January 1, 1995;

(ii) Futures or forward contracts;

(iii) Options;

(iv) Notional principal contracts such as swaps;

(v) Credit card receivables, including purchased credit card relationships;

(vi) Noninterest-bearing balances due from depository institutions;

(vii) Cash items in the process of collection;

(viii) Federal funds sold;

(ix) Securities purchased under agreements to resell;

(x) Assets held in a trading account;

(xi) Securities;

(xii) Interests in a real estate mortgage investment conduit, as defined by the Internal Revenue Code, 26 U.S.C. § 1 et seq., as in effect January 1, 1995, or other mortgage-backed or asset-backed security; and

(xiii) Other similar items;

(9) "Loan secured by real property" means that fifty percent (50%) or more of the aggregate value of the collateral used to secure a loan or other obligation, when valued at fair market value as of the time the original loan or obligation was incurred, was real property;

(10) "Merchant discount" means the fee or negotiated discount charged to a merchant by the taxpayer for the privilege of participating in a program whereby a credit card is accepted in payment for merchandise or services sold to the card holder;

(11) "Participation" means an extension of credit in which an undivided ownership interest is held on a pro rata basis in a single loan or pool of loans and related collateral. In a loan participation, the credit originator initially makes the loan and then subsequently resells all or a portion of it to other lenders. The participation may or may not be known to the borrower;

(12) "Person" means an individual, estate, trust, partnership, limited liability company, corporation, and any other business entity;

(13) (A) "Principal base of operations", with respect to transportation property, means the place of more or less permanent nature from which said property is regularly directed or controlled. (B) "Principal base of operations" means, with respect to an employee, the place of more or less permanent nature from which the employee regularly: (i) Starts his or her work and to which he or she customarily returns in order to receive instructions from his or her employer; (ii) Communicates with his or her customers or other persons; or (iii) Performs any other functions necessary to the exercise of his or her trade or profession at some other point or points;

(A) "Principal base of operations", with respect to transportation property, means the place of more or less permanent nature from which said property is regularly directed or controlled.

(B) "Principal base of operations" means, with respect to an employee, the place of more or less permanent nature from which the employee regularly: (i) Starts his or her work and to which he or she customarily returns in order to receive instructions from his or her employer; (ii) Communicates with his or her customers or other persons; or (iii) Performs any other functions necessary to the exercise of his or her trade or profession at some other point or points;

(i) Starts his or her work and to which he or she customarily returns in order to receive instructions from his or her employer;

(ii) Communicates with his or her customers or other persons; or

(iii) Performs any other functions necessary to the exercise of his or her trade or profession at some other point or points;

(14) (A) "Real property owned" and "tangible personal property owned" mean real and tangible personal property, respectively: (i) On which the taxpayer may claim depreciation for federal income tax purposes, pursuant to the Internal Revenue Code, 26 U.S.C. § 1 et seq., as in effect January 1, 1995; or (ii) Property to which the taxpayer holds legal title and on which no other person may claim depreciation for federal income tax purposes, pursuant to the Internal Revenue Code, 26 U.S.C. § 1 et seq., as in effect January 1, 1995, or could claim depreciation if subject to federal income tax, pursuant to the Internal Revenue Code, 26 U.S.C. § 1 et seq., as in effect January 1, 1995. (B) "Real property owned" and "tangible personal property owned" do not include coin, currency, or property acquired in lieu of or pursuant to a foreclosure;

(A) "Real property owned" and "tangible personal property owned" mean real and tangible personal property, respectively: (i) On which the taxpayer may claim depreciation for federal income tax purposes, pursuant to the Internal Revenue Code, 26 U.S.C. § 1 et seq., as in effect January 1, 1995; or (ii) Property to which the taxpayer holds legal title and on which no other person may claim depreciation for federal income tax purposes, pursuant to the Internal Revenue Code, 26 U.S.C. § 1 et seq., as in effect January 1, 1995, or could claim depreciation if subject to federal income tax, pursuant to the Internal Revenue Code, 26 U.S.C. § 1 et seq., as in effect January 1, 1995.

(i) On which the taxpayer may claim depreciation for federal income tax purposes, pursuant to the Internal Revenue Code, 26 U.S.C. § 1 et seq., as in effect January 1, 1995; or

(ii) Property to which the taxpayer holds legal title and on which no other person may claim depreciation for federal income tax purposes, pursuant to the Internal Revenue Code, 26 U.S.C. § 1 et seq., as in effect January 1, 1995, or could claim depreciation if subject to federal income tax, pursuant to the Internal Revenue Code, 26 U.S.C. § 1 et seq., as in effect January 1, 1995.

(B) "Real property owned" and "tangible personal property owned" do not include coin, currency, or property acquired in lieu of or pursuant to a foreclosure;

(15) "Regular place of business" means an office at which the taxpayer carries on its business in a regular and systematic manner and which is continuously maintained, occupied, and used by employees of the taxpayer;

(16) "State" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, or any foreign country;

(17) "Syndication" means an extension of credit in which two (2) or more persons fund and each person is at risk only up to a specified percentage of the total extension of credit or up to a specified dollar amount;

(18) "Taxable" means either: (A) That a taxpayer is subject in another state to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, a corporate stock tax, including a bank shares tax, a single business tax, or an earned surplus tax, or any tax which is imposed upon or measured by net income; or (B) That another state has jurisdiction to subject the taxpayer to any of such taxes regardless of whether, in fact, the state does or does not; and

(A) That a taxpayer is subject in another state to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, a corporate stock tax, including a bank shares tax, a single business tax, or an earned surplus tax, or any tax which is imposed upon or measured by net income; or

(B) That another state has jurisdiction to subject the taxpayer to any of such taxes regardless of whether, in fact, the state does or does not; and

(19) "Transportation property" means vehicles and vessels capable of moving under their own power such as aircraft, trains, water vessels, and motor vehicles, as well as any equipment or containers attached to such property, such as rolling stock, barges, trailers, or the like.

Amended by Act 2019, No. 822,§ 12, eff. 1/1/2021.

Amended by Act 2019, No. 822,§ 11, eff. 1/1/2021.

Acts 1995, No. 495, § 1.
Ark. Code Ann. § 26-2-108 — AR Code / Title 26 / Chapter 2 / Section 26-2-108
Nonperformance of duty by county clerk, county assessor, or county collector
Status: in_force

Every county clerk, county assessor, or county collector who in any case refuses or knowingly neglects to perform any duty enjoined on him or her by this title or who consents to or connives at any evasion of its provisions whereby any proceedings required in this act shall be prevented or hindered or where any property required to be listed for taxation or for the collection of taxes thereon or the valuation thereof is entered on the tax books or lists at less than the true value shall forfeit and pay to the state, for every neglect, refusal, connivance, or consent, not less than one hundred dollars ($100) nor more than five thousand dollars ($5,000), at the discretion of the circuit court, to be recovered by an action in the name of the state before the circuit court of the proper county. Acts 1883, No. 114, § 206, p. 199; C. & M. Dig., § 10168; Pope's Dig., § 13950; A.S.A. 1947, § 84-1608.

Every county clerk, county assessor, or county collector who in any case refuses or knowingly neglects to perform any duty enjoined on him or her by this title or who consents to or connives at any evasion of its provisions whereby any proceedings required in this act shall be prevented or hindered or where any property required to be listed for taxation or for the collection of taxes thereon or the valuation thereof is entered on the tax books or lists at less than the true value shall forfeit and pay to the state, for every neglect, refusal, connivance, or consent, not less than one hundred dollars ($100) nor more than five thousand dollars ($5,000), at the discretion of the circuit court, to be recovered by an action in the name of the state before the circuit court of the proper county.

Acts 1883, No. 114, § 206, p. 199; C. & M. Dig., § 10168; Pope's Dig., § 13950; A.S.A. 1947, § 84-1608.
Ark. Code Ann. § 26-53-126 — AR Code / Title 26 / Chapter 53 / Subchapter 1 / Section 26-53-126
Tax on new and used motor vehicles, trailers, or semitrailers - Payment and collection
Status: in_force

(a) (1) Upon being registered in this state, a new or used motor vehicle, trailer, or semitrailer required to be licensed in this state is subject to the tax levied in this subchapter and all other use taxes levied by the state regardless of whether the motor vehicle, trailer, or semitrailer was purchased from a dealer or an individual. (2) (A) On or before the time for registration as prescribed by § 27-14-903(a) , the person making application to register the motor vehicle, trailer, or semitrailer shall pay the taxes to the Secretary of the Department of Finance and Administration instead of the taxes being collected by the dealer or individual seller. (B) The secretary shall collect the taxes before issuing a license for the motor vehicle, trailer, or semitrailer. (3) The exemption in § 26-52-401(17) for isolated sales does not apply to the sale of a motor vehicle, trailer, or semitrailer. (4) If the person making application to register the motor vehicle, trailer, or semitrailer fails to pay the taxes when due: (A) There is assessed a penalty equal to ten percent (10%) of the amount of taxes due; and (B) The person making application to register the motor vehicle, trailer, or semitrailer shall pay to the secretary the penalty under subdivision (a)(4)(A) of this section and the taxes due before the secretary issues a license for the motor vehicle, trailer, or semitrailer. (b) (1) When a used motor vehicle, trailer, or semitrailer is taken in trade as a credit or part payment on the sale of a new or used vehicle, trailer, or semitrailer, the tax levied in this subchapter and all other use taxes levied by the state shall be paid on the net difference between the total consideration for the new or used vehicle, trailer, or semitrailer sold and the credit for the used vehicle, trailer, or semitrailer taken in trade. (2) (A) (i) If the total consideration for the sale of the new or used motor vehicle, trailer, or semitrailer is less than four thousand dollars ($4,000), no tax is due. (ii) If the total consideration for the sale of a new motor vehicle, trailer, or semitrailer is four thousand dollars ($4,000) or more, the full compensating use tax rate levied under this chapter shall be levied and collected. (B) If the total consideration for the sale of a used motor vehicle, trailer, or semitrailer is at least four thousand dollars ($4,000) but less than ten thousand dollars ($10,000), the compensating use tax due shall be determined under § 26-53-150 . (C) If the total consideration for the sale of a used motor vehicle, trailer, or semitrailer is ten thousand dollars ($10,000) or more: (i) The exemption under subdivision (b)(2)(A)(i) of this section does not apply; (ii) The special tax rate provided in § 26-53-150 does not apply; and (iii) The full compensating use tax rate levied under this chapter shall be levied and collected. (3) (A) When a used motor vehicle, trailer, or semitrailer is sold by a consumer, rather than traded in as a credit or part payment on the sale of a new or used motor vehicle, trailer, or semitrailer, and the consumer subsequently purchases a new or used vehicle, trailer, or semitrailer of greater value within sixty (60) days of the sale, the tax levied by this chapter and all other gross receipts taxes levied by the state shall be paid on the net difference between the total consideration for the new or used vehicle, trailer, or semitrailer purchased subsequently and the amount received from the sale of the used vehicle, trailer, or semitrailer sold in lieu of a trade-in. (B) (i) Upon registration of the new or used motor vehicle, consumers claiming the deduction provided by subdivision (b)(3)(A) of this section shall provide a bill of sale signed by all parties to the transaction which reflects the total consideration paid to the seller for the vehicle. (ii) A copy of the bill of sale shall be deposited with the revenue office at the time of registration of the new or used motor vehicle. (iii) The deduction provided by this subdivision (b)(3) shall not be allowed unless the taxpayer claiming the deduction provides a copy of a bill of sale signed by all parties to the transaction which reflects the total consideration paid to the seller for the vehicle. (C) If the taxpayer claiming the deduction provided in this subdivision (b)(3) fails to provide a bill of sale signed by all parties to the transaction which reflects the total consideration paid to the seller for the vehicle, tax shall be due on the total consideration paid for the new or used vehicle, trailer, or semitrailer without any deduction for the value of the item sold. (c) The tax imposed by this subchapter shall not apply to a motor vehicle, trailer, or semitrailer to be registered by a bona fide nonresident of this state. (d) Nothing in this section shall be construed to repeal any exemption from this subchapter. (e) (1) Upon payment of all applicable registration and title fees, any motor vehicle dealer licensed pursuant to § 27-14-601(a)(6) who has purchased a used motor vehicle may register the vehicle for the sole purpose of obtaining a certificate of title to the vehicle without payment of use tax. (2) No license plate shall be provided with the registration, and the used vehicle titled by a dealer under this subsection may not be operated on the public highways unless there is displayed on the used vehicle a dealer's license plate issued under the provisions of § 27-14-601(a)(6)(B)(ii) . (f) (1) (A) For purposes of this section, the total consideration for a used motor vehicle shall be presumed to be the greater of the actual sales price as provided on a bill of sale, invoice or financing agreement, or the average loan value of the vehicle as listed in the most current edition of a publication which is generally accepted by the industry as providing an accurate valuation of used vehicles. (B) If the published loan value exceeds the invoiced price, then the taxpayer must establish to the secretary's satisfaction that the price reflected on the invoice or other document is true and correct. (C) If the secretary determines that the invoiced price is not the actual selling price of the vehicle, then the total consideration will be deemed to be the published loan value. (2) (A) For purposes of this section, the total consideration for a new or used trailer or semitrailer shall be the actual sales price as provided on a bill of sale, invoice, or financing agreement. (B) The secretary may require additional information to conclusively establish the true selling price of the new or used trailer or semitrailer. Amended by Act 2021, No. 1013,§ 7, eff. 1/1/2022. Amended by Act 2021, No. 277,§ 2, eff. 7/28/2021. Amended by Act 2019, No. 910,§ 3911, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 3910, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 3909, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 3908, eff. 7/1/2019. Acts 1949, No. 487, § 5; 1957, No. 19, § 4; 1959, No. 260, §§ 2, 3; A.S.A. 1947, §§ 84-3105, 84-3105n., 84-3108n; Acts 1991, No. 3, § 7; 1995, No. 268, § 7; 1995, No. 437, § 3; 1997, No. 1232, §§ 3, 4; 2001, No. 1047, § 2; 2009, No. 655, §§ 34, 35; 2011, No. 753, § 2; 2011, No. 983, § 11.

(a) (1) Upon being registered in this state, a new or used motor vehicle, trailer, or semitrailer required to be licensed in this state is subject to the tax levied in this subchapter and all other use taxes levied by the state regardless of whether the motor vehicle, trailer, or semitrailer was purchased from a dealer or an individual. (2) (A) On or before the time for registration as prescribed by § 27-14-903(a) , the person making application to register the motor vehicle, trailer, or semitrailer shall pay the taxes to the Secretary of the Department of Finance and Administration instead of the taxes being collected by the dealer or individual seller. (B) The secretary shall collect the taxes before issuing a license for the motor vehicle, trailer, or semitrailer. (3) The exemption in § 26-52-401(17) for isolated sales does not apply to the sale of a motor vehicle, trailer, or semitrailer. (4) If the person making application to register the motor vehicle, trailer, or semitrailer fails to pay the taxes when due: (A) There is assessed a penalty equal to ten percent (10%) of the amount of taxes due; and (B) The person making application to register the motor vehicle, trailer, or semitrailer shall pay to the secretary the penalty under subdivision (a)(4)(A) of this section and the taxes due before the secretary issues a license for the motor vehicle, trailer, or semitrailer.

(1) Upon being registered in this state, a new or used motor vehicle, trailer, or semitrailer required to be licensed in this state is subject to the tax levied in this subchapter and all other use taxes levied by the state regardless of whether the motor vehicle, trailer, or semitrailer was purchased from a dealer or an individual.

(2) (A) On or before the time for registration as prescribed by § 27-14-903(a) , the person making application to register the motor vehicle, trailer, or semitrailer shall pay the taxes to the Secretary of the Department of Finance and Administration instead of the taxes being collected by the dealer or individual seller. (B) The secretary shall collect the taxes before issuing a license for the motor vehicle, trailer, or semitrailer.

(A) On or before the time for registration as prescribed by § 27-14-903(a) , the person making application to register the motor vehicle, trailer, or semitrailer shall pay the taxes to the Secretary of the Department of Finance and Administration instead of the taxes being collected by the dealer or individual seller.

(B) The secretary shall collect the taxes before issuing a license for the motor vehicle, trailer, or semitrailer.

(3) The exemption in § 26-52-401(17) for isolated sales does not apply to the sale of a motor vehicle, trailer, or semitrailer.

(4) If the person making application to register the motor vehicle, trailer, or semitrailer fails to pay the taxes when due: (A) There is assessed a penalty equal to ten percent (10%) of the amount of taxes due; and (B) The person making application to register the motor vehicle, trailer, or semitrailer shall pay to the secretary the penalty under subdivision (a)(4)(A) of this section and the taxes due before the secretary issues a license for the motor vehicle, trailer, or semitrailer.

(A) There is assessed a penalty equal to ten percent (10%) of the amount of taxes due; and

(B) The person making application to register the motor vehicle, trailer, or semitrailer shall pay to the secretary the penalty under subdivision (a)(4)(A) of this section and the taxes due before the secretary issues a license for the motor vehicle, trailer, or semitrailer.

(b) (1) When a used motor vehicle, trailer, or semitrailer is taken in trade as a credit or part payment on the sale of a new or used vehicle, trailer, or semitrailer, the tax levied in this subchapter and all other use taxes levied by the state shall be paid on the net difference between the total consideration for the new or used vehicle, trailer, or semitrailer sold and the credit for the used vehicle, trailer, or semitrailer taken in trade. (2) (A) (i) If the total consideration for the sale of the new or used motor vehicle, trailer, or semitrailer is less than four thousand dollars ($4,000), no tax is due. (ii) If the total consideration for the sale of a new motor vehicle, trailer, or semitrailer is four thousand dollars ($4,000) or more, the full compensating use tax rate levied under this chapter shall be levied and collected. (B) If the total consideration for the sale of a used motor vehicle, trailer, or semitrailer is at least four thousand dollars ($4,000) but less than ten thousand dollars ($10,000), the compensating use tax due shall be determined under § 26-53-150 . (C) If the total consideration for the sale of a used motor vehicle, trailer, or semitrailer is ten thousand dollars ($10,000) or more: (i) The exemption under subdivision (b)(2)(A)(i) of this section does not apply; (ii) The special tax rate provided in § 26-53-150 does not apply; and (iii) The full compensating use tax rate levied under this chapter shall be levied and collected. (3) (A) When a used motor vehicle, trailer, or semitrailer is sold by a consumer, rather than traded in as a credit or part payment on the sale of a new or used motor vehicle, trailer, or semitrailer, and the consumer subsequently purchases a new or used vehicle, trailer, or semitrailer of greater value within sixty (60) days of the sale, the tax levied by this chapter and all other gross receipts taxes levied by the state shall be paid on the net difference between the total consideration for the new or used vehicle, trailer, or semitrailer purchased subsequently and the amount received from the sale of the used vehicle, trailer, or semitrailer sold in lieu of a trade-in. (B) (i) Upon registration of the new or used motor vehicle, consumers claiming the deduction provided by subdivision (b)(3)(A) of this section shall provide a bill of sale signed by all parties to the transaction which reflects the total consideration paid to the seller for the vehicle. (ii) A copy of the bill of sale shall be deposited with the revenue office at the time of registration of the new or used motor vehicle. (iii) The deduction provided by this subdivision (b)(3) shall not be allowed unless the taxpayer claiming the deduction provides a copy of a bill of sale signed by all parties to the transaction which reflects the total consideration paid to the seller for the vehicle. (C) If the taxpayer claiming the deduction provided in this subdivision (b)(3) fails to provide a bill of sale signed by all parties to the transaction which reflects the total consideration paid to the seller for the vehicle, tax shall be due on the total consideration paid for the new or used vehicle, trailer, or semitrailer without any deduction for the value of the item sold.

(1) When a used motor vehicle, trailer, or semitrailer is taken in trade as a credit or part payment on the sale of a new or used vehicle, trailer, or semitrailer, the tax levied in this subchapter and all other use taxes levied by the state shall be paid on the net difference between the total consideration for the new or used vehicle, trailer, or semitrailer sold and the credit for the used vehicle, trailer, or semitrailer taken in trade.

(2) (A) (i) If the total consideration for the sale of the new or used motor vehicle, trailer, or semitrailer is less than four thousand dollars ($4,000), no tax is due. (ii) If the total consideration for the sale of a new motor vehicle, trailer, or semitrailer is four thousand dollars ($4,000) or more, the full compensating use tax rate levied under this chapter shall be levied and collected. (B) If the total consideration for the sale of a used motor vehicle, trailer, or semitrailer is at least four thousand dollars ($4,000) but less than ten thousand dollars ($10,000), the compensating use tax due shall be determined under § 26-53-150 . (C) If the total consideration for the sale of a used motor vehicle, trailer, or semitrailer is ten thousand dollars ($10,000) or more: (i) The exemption under subdivision (b)(2)(A)(i) of this section does not apply; (ii) The special tax rate provided in § 26-53-150 does not apply; and (iii) The full compensating use tax rate levied under this chapter shall be levied and collected.

(A) (i) If the total consideration for the sale of the new or used motor vehicle, trailer, or semitrailer is less than four thousand dollars ($4,000), no tax is due. (ii) If the total consideration for the sale of a new motor vehicle, trailer, or semitrailer is four thousand dollars ($4,000) or more, the full compensating use tax rate levied under this chapter shall be levied and collected.

(i) If the total consideration for the sale of the new or used motor vehicle, trailer, or semitrailer is less than four thousand dollars ($4,000), no tax is due.

(ii) If the total consideration for the sale of a new motor vehicle, trailer, or semitrailer is four thousand dollars ($4,000) or more, the full compensating use tax rate levied under this chapter shall be levied and collected.

(B) If the total consideration for the sale of a used motor vehicle, trailer, or semitrailer is at least four thousand dollars ($4,000) but less than ten thousand dollars ($10,000), the compensating use tax due shall be determined under § 26-53-150 .

(C) If the total consideration for the sale of a used motor vehicle, trailer, or semitrailer is ten thousand dollars ($10,000) or more: (i) The exemption under subdivision (b)(2)(A)(i) of this section does not apply; (ii) The special tax rate provided in § 26-53-150 does not apply; and (iii) The full compensating use tax rate levied under this chapter shall be levied and collected.

(i) The exemption under subdivision (b)(2)(A)(i) of this section does not apply;

(ii) The special tax rate provided in § 26-53-150 does not apply; and

(iii) The full compensating use tax rate levied under this chapter shall be levied and collected.

(3) (A) When a used motor vehicle, trailer, or semitrailer is sold by a consumer, rather than traded in as a credit or part payment on the sale of a new or used motor vehicle, trailer, or semitrailer, and the consumer subsequently purchases a new or used vehicle, trailer, or semitrailer of greater value within sixty (60) days of the sale, the tax levied by this chapter and all other gross receipts taxes levied by the state shall be paid on the net difference between the total consideration for the new or used vehicle, trailer, or semitrailer purchased subsequently and the amount received from the sale of the used vehicle, trailer, or semitrailer sold in lieu of a trade-in. (B) (i) Upon registration of the new or used motor vehicle, consumers claiming the deduction provided by subdivision (b)(3)(A) of this section shall provide a bill of sale signed by all parties to the transaction which reflects the total consideration paid to the seller for the vehicle. (ii) A copy of the bill of sale shall be deposited with the revenue office at the time of registration of the new or used motor vehicle. (iii) The deduction provided by this subdivision (b)(3) shall not be allowed unless the taxpayer claiming the deduction provides a copy of a bill of sale signed by all parties to the transaction which reflects the total consideration paid to the seller for the vehicle. (C) If the taxpayer claiming the deduction provided in this subdivision (b)(3) fails to provide a bill of sale signed by all parties to the transaction which reflects the total consideration paid to the seller for the vehicle, tax shall be due on the total consideration paid for the new or used vehicle, trailer, or semitrailer without any deduction for the value of the item sold.

(A) When a used motor vehicle, trailer, or semitrailer is sold by a consumer, rather than traded in as a credit or part payment on the sale of a new or used motor vehicle, trailer, or semitrailer, and the consumer subsequently purchases a new or used vehicle, trailer, or semitrailer of greater value within sixty (60) days of the sale, the tax levied by this chapter and all other gross receipts taxes levied by the state shall be paid on the net difference between the total consideration for the new or used vehicle, trailer, or semitrailer purchased subsequently and the amount received from the sale of the used vehicle, trailer, or semitrailer sold in lieu of a trade-in.

(B) (i) Upon registration of the new or used motor vehicle, consumers claiming the deduction provided by subdivision (b)(3)(A) of this section shall provide a bill of sale signed by all parties to the transaction which reflects the total consideration paid to the seller for the vehicle. (ii) A copy of the bill of sale shall be deposited with the revenue office at the time of registration of the new or used motor vehicle. (iii) The deduction provided by this subdivision (b)(3) shall not be allowed unless the taxpayer claiming the deduction provides a copy of a bill of sale signed by all parties to the transaction which reflects the total consideration paid to the seller for the vehicle.

(i) Upon registration of the new or used motor vehicle, consumers claiming the deduction provided by subdivision (b)(3)(A) of this section shall provide a bill of sale signed by all parties to the transaction which reflects the total consideration paid to the seller for the vehicle.

(ii) A copy of the bill of sale shall be deposited with the revenue office at the time of registration of the new or used motor vehicle.

(iii) The deduction provided by this subdivision (b)(3) shall not be allowed unless the taxpayer claiming the deduction provides a copy of a bill of sale signed by all parties to the transaction which reflects the total consideration paid to the seller for the vehicle.

(C) If the taxpayer claiming the deduction provided in this subdivision (b)(3) fails to provide a bill of sale signed by all parties to the transaction which reflects the total consideration paid to the seller for the vehicle, tax shall be due on the total consideration paid for the new or used vehicle, trailer, or semitrailer without any deduction for the value of the item sold.

(c) The tax imposed by this subchapter shall not apply to a motor vehicle, trailer, or semitrailer to be registered by a bona fide nonresident of this state.

(d) Nothing in this section shall be construed to repeal any exemption from this subchapter.

(e) (1) Upon payment of all applicable registration and title fees, any motor vehicle dealer licensed pursuant to § 27-14-601(a)(6) who has purchased a used motor vehicle may register the vehicle for the sole purpose of obtaining a certificate of title to the vehicle without payment of use tax. (2) No license plate shall be provided with the registration, and the used vehicle titled by a dealer under this subsection may not be operated on the public highways unless there is displayed on the used vehicle a dealer's license plate issued under the provisions of § 27-14-601(a)(6)(B)(ii) .

(1) Upon payment of all applicable registration and title fees, any motor vehicle dealer licensed pursuant to § 27-14-601(a)(6) who has purchased a used motor vehicle may register the vehicle for the sole purpose of obtaining a certificate of title to the vehicle without payment of use tax.

(2) No license plate shall be provided with the registration, and the used vehicle titled by a dealer under this subsection may not be operated on the public highways unless there is displayed on the used vehicle a dealer's license plate issued under the provisions of § 27-14-601(a)(6)(B)(ii) .

(f) (1) (A) For purposes of this section, the total consideration for a used motor vehicle shall be presumed to be the greater of the actual sales price as provided on a bill of sale, invoice or financing agreement, or the average loan value of the vehicle as listed in the most current edition of a publication which is generally accepted by the industry as providing an accurate valuation of used vehicles. (B) If the published loan value exceeds the invoiced price, then the taxpayer must establish to the secretary's satisfaction that the price reflected on the invoice or other document is true and correct. (C) If the secretary determines that the invoiced price is not the actual selling price of the vehicle, then the total consideration will be deemed to be the published loan value. (2) (A) For purposes of this section, the total consideration for a new or used trailer or semitrailer shall be the actual sales price as provided on a bill of sale, invoice, or financing agreement. (B) The secretary may require additional information to conclusively establish the true selling price of the new or used trailer or semitrailer.

(1) (A) For purposes of this section, the total consideration for a used motor vehicle shall be presumed to be the greater of the actual sales price as provided on a bill of sale, invoice or financing agreement, or the average loan value of the vehicle as listed in the most current edition of a publication which is generally accepted by the industry as providing an accurate valuation of used vehicles. (B) If the published loan value exceeds the invoiced price, then the taxpayer must establish to the secretary's satisfaction that the price reflected on the invoice or other document is true and correct. (C) If the secretary determines that the invoiced price is not the actual selling price of the vehicle, then the total consideration will be deemed to be the published loan value.

(A) For purposes of this section, the total consideration for a used motor vehicle shall be presumed to be the greater of the actual sales price as provided on a bill of sale, invoice or financing agreement, or the average loan value of the vehicle as listed in the most current edition of a publication which is generally accepted by the industry as providing an accurate valuation of used vehicles.

(B) If the published loan value exceeds the invoiced price, then the taxpayer must establish to the secretary's satisfaction that the price reflected on the invoice or other document is true and correct.

(C) If the secretary determines that the invoiced price is not the actual selling price of the vehicle, then the total consideration will be deemed to be the published loan value.

(2) (A) For purposes of this section, the total consideration for a new or used trailer or semitrailer shall be the actual sales price as provided on a bill of sale, invoice, or financing agreement. (B) The secretary may require additional information to conclusively establish the true selling price of the new or used trailer or semitrailer.

(A) For purposes of this section, the total consideration for a new or used trailer or semitrailer shall be the actual sales price as provided on a bill of sale, invoice, or financing agreement.

(B) The secretary may require additional information to conclusively establish the true selling price of the new or used trailer or semitrailer.

Amended by Act 2021, No. 1013,§ 7, eff. 1/1/2022.

Amended by Act 2021, No. 277,§ 2, eff. 7/28/2021.

Amended by Act 2019, No. 910,§ 3911, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 3910, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 3909, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 3908, eff. 7/1/2019.

Acts 1949, No. 487, § 5; 1957, No. 19, § 4; 1959, No. 260, §§ 2, 3; A.S.A. 1947, §§ 84-3105, 84-3105n., 84-3108n; Acts 1991, No. 3, § 7; 1995, No. 268, § 7; 1995, No. 437, § 3; 1997, No. 1232, §§ 3, 4; 2001, No. 1047, § 2; 2009, No. 655, §§ 34, 35; 2011, No. 753, § 2; 2011, No. 983, § 11.
Ark. Code Ann. § 26-57-501 — AR Code / Title 26 / Chapter 57 / Subchapter 5 / Section 26-57-501
Penalties
Status: in_force

Any person, firm, partnership, limited liability company, or corporation failing to comply with a provision of this subchapter shall be guilty of a violation and upon conviction shall be fined in a sum not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000). Acts 1939, No. 151, § 6; A.S.A. 1947, § 84-2219; Acts 1995, No. 1160, § 34; 2005, No. 1994, § 177.

Any person, firm, partnership, limited liability company, or corporation failing to comply with a provision of this subchapter shall be guilty of a violation and upon conviction shall be fined in a sum not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000).

Acts 1939, No. 151, § 6; A.S.A. 1947, § 84-2219; Acts 1995, No. 1160, § 34; 2005, No. 1994, § 177.
Ark. Code Ann. § 26-24-122 — AR Code / Title 26 / Chapter 24 / Section 26-24-122
Appearance of witnesses
Status: in_force

(a) (1) In case any witness who has been summoned to testify before the Arkansas Public Service Commission shall fail or refuse to testify to or make answer to any material question relating to any matter under investigation or to produce any records, books, papers, or other documents in his or her custody or control when required to do so, any circuit court, or any circuit judge thereof, upon application of any member of the commission, shall issue an attachment for the witness and compel him or her to comply with the summons and to attend before the commission and produce the books, documents, papers, or records and give testimony upon matters about which he or she may be lawfully interrogated. (2) The circuit court, or circuit judge thereof, may punish a witness for contempt as in the case of disobedience of a like subpoena issued from the circuit court for the refusal to testify in any cases pending therein. (b) (1) No witness shall be excused from attending or testifying or from producing books, papers, records, accounts, and other documents before the commission, or in obedience to its subpoena, on the ground or for the reason that the testimony, documentary or otherwise, required of him or her may tend to incriminate him or her or subject him or her to a penalty or forfeiture. (2) No person shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he or she may testify or produce evidence, documentary or otherwise, before the commission, or in obedience to its subpoena. However, no person so testifying shall be exempt from prosecution and punishment for perjury committed in so testifying. (c) (1) Every witness who shall appear before the commission by its order shall receive for his or her attendance the fees and mileage allowed by law for witnesses in civil cases in circuit courts, which shall be audited and paid by the state in the same manner as other expenses of the commission are audited and paid, upon the presentation of the proper voucher sworn to by the witness and approved by the commission or the chair thereof. (2) Witnesses summoned at the instance of parties other than the commission shall be paid by the party causing the witnesses to be summoned. Acts 1927, No. 129, §§ 26-28; Pope's Dig., §§ 2052-2054; A.S.A. 1947, §§ 84-104 -- 84-106.

(a) (1) In case any witness who has been summoned to testify before the Arkansas Public Service Commission shall fail or refuse to testify to or make answer to any material question relating to any matter under investigation or to produce any records, books, papers, or other documents in his or her custody or control when required to do so, any circuit court, or any circuit judge thereof, upon application of any member of the commission, shall issue an attachment for the witness and compel him or her to comply with the summons and to attend before the commission and produce the books, documents, papers, or records and give testimony upon matters about which he or she may be lawfully interrogated. (2) The circuit court, or circuit judge thereof, may punish a witness for contempt as in the case of disobedience of a like subpoena issued from the circuit court for the refusal to testify in any cases pending therein.

(1) In case any witness who has been summoned to testify before the Arkansas Public Service Commission shall fail or refuse to testify to or make answer to any material question relating to any matter under investigation or to produce any records, books, papers, or other documents in his or her custody or control when required to do so, any circuit court, or any circuit judge thereof, upon application of any member of the commission, shall issue an attachment for the witness and compel him or her to comply with the summons and to attend before the commission and produce the books, documents, papers, or records and give testimony upon matters about which he or she may be lawfully interrogated.

(2) The circuit court, or circuit judge thereof, may punish a witness for contempt as in the case of disobedience of a like subpoena issued from the circuit court for the refusal to testify in any cases pending therein.

(b) (1) No witness shall be excused from attending or testifying or from producing books, papers, records, accounts, and other documents before the commission, or in obedience to its subpoena, on the ground or for the reason that the testimony, documentary or otherwise, required of him or her may tend to incriminate him or her or subject him or her to a penalty or forfeiture. (2) No person shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he or she may testify or produce evidence, documentary or otherwise, before the commission, or in obedience to its subpoena. However, no person so testifying shall be exempt from prosecution and punishment for perjury committed in so testifying.

(1) No witness shall be excused from attending or testifying or from producing books, papers, records, accounts, and other documents before the commission, or in obedience to its subpoena, on the ground or for the reason that the testimony, documentary or otherwise, required of him or her may tend to incriminate him or her or subject him or her to a penalty or forfeiture.

(2) No person shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he or she may testify or produce evidence, documentary or otherwise, before the commission, or in obedience to its subpoena. However, no person so testifying shall be exempt from prosecution and punishment for perjury committed in so testifying.

(c) (1) Every witness who shall appear before the commission by its order shall receive for his or her attendance the fees and mileage allowed by law for witnesses in civil cases in circuit courts, which shall be audited and paid by the state in the same manner as other expenses of the commission are audited and paid, upon the presentation of the proper voucher sworn to by the witness and approved by the commission or the chair thereof. (2) Witnesses summoned at the instance of parties other than the commission shall be paid by the party causing the witnesses to be summoned.

(1) Every witness who shall appear before the commission by its order shall receive for his or her attendance the fees and mileage allowed by law for witnesses in civil cases in circuit courts, which shall be audited and paid by the state in the same manner as other expenses of the commission are audited and paid, upon the presentation of the proper voucher sworn to by the witness and approved by the commission or the chair thereof.

(2) Witnesses summoned at the instance of parties other than the commission shall be paid by the party causing the witnesses to be summoned.

Acts 1927, No. 129, §§ 26-28; Pope's Dig., §§ 2052-2054; A.S.A. 1947, §§ 84-104 -- 84-106.
Ark. Code Ann. § 26-18-208 — AR Code / Title 26 / Chapter 18 / Subchapter 2 / Section 26-18-208
Additional penalties and tax
Status: in_force

In addition to the criminal penalties provided by this chapter, if a taxpayer shall fail to comply with certain provisions of this chapter, then the following penalties and additions to tax shall be applicable: (1) In the case of a taxpayer's failure to file any return required by any state tax law on or before the date prescribed determined with regard to any extension of time for filing the return, unless it is shown that the failure is due to reasonable cause and not to willful neglect, there shall be added to the amount required to be shown as tax on the return five percent (5%) of the amount of the tax if the failure is not more than one (1) month, with an additional five percent (5%) for each additional month or fraction of a month during which the failure continues, not to exceed thirty-five percent (35%) in the aggregate; (2) (A) In case of a failure to pay the amount shown as tax on any return required to be filed under any state tax law, except an individual income tax return, on or before the date prescribed for payment of the tax, unless it is shown that the failure to pay is due to reasonable cause and not to willful neglect, there shall be added to the amount shown as tax on the return five percent (5%) of the amount of the tax if the failure is for not more than one (1) month, with an additional five percent (5%) for each additional month or fraction of a month during which the failure continues, not to exceed thirty-five percent (35%) in the aggregate. (B) In case of failure to pay the amount shown as tax on any individual income tax return required to be filed, on or before the date prescribed for payment of the tax, unless it is shown that the failure to pay is due to reasonable cause and not to willful neglect, there shall be added to the amount shown as tax on the return one percent (1%) of the amount of the tax if the failure is for not more than one (1) month, with an additional one percent (1%) for each additional month or fraction of a month during which the failure continues, not to exceed thirty-five percent (35%) in the aggregate; (3) (A) (i) If any penalty is assessed under subdivision (1) of this section, then no penalty shall be assessed under subdivision (2)(A) of this section. (ii) If any penalty is assessed under subdivision (2)(A) of this section, then no penalty shall be assessed under subdivision (1) of this section; (B) With respect to any individual income tax return, the amount of the addition under subdivision (1) of this section shall be increased by the amount of the addition under subdivision (2)(B) of this section for any month or fraction of a month to which an addition to tax applies under both subdivisions (1) and (2)(B) of this section, not to exceed thirty-five percent (35%) in the aggregate; (4) (A) If any part of a deficiency in taxes is determined to be due to negligence or intentional disregard of rules promulgated under the authority of this subchapter or any state tax law, then the Secretary of the Department of Finance and Administration shall add a penalty of ten percent (10%) of the total amount of the deficiency in addition to any interest provided by law. (B) However, if any penalty is assessed under subdivisions (1)-(3) of this section, then no penalty shall be assessed under subdivision (4)(A) of this section; (5) (A) If any part of any deficiency of any state tax required to be shown on a return is determined to be due to fraud, there shall be added to the tax an amount equal to fifty percent (50%) of the deficiency in addition to any interest provided by law. (B) If any penalty is assessed under subdivision (5)(A) of this section, then no penalty shall be assessed under subdivisions (1)-(4) of this section; (6) (A) (i) If a taxpayer fails to make a declaration of estimated tax and pay on any quarterly due date the equivalent to at least ninety percent (90%) of the amount actually due, there shall be added a penalty of ten percent (10%) per annum to the amount of the underestimate. (ii) The ten percent (10%) per annum penalty shall be applied on a quarterly basis. (iii) A taxpayer who has an uneven income may compute the ten percent (10%) penalty on an annualized basis. (B) The penalty provided in this subdivision (6) for failure to make correct payments of estimated income tax shall not be applied to the following exceptions: (i) No penalty shall be imposed for a tax year if the tax shown on the return for such tax year is one thousand dollars ($1,000) or less; (ii) A taxpayer whose income from farming for the income year can reasonably be expected to amount to at least two-thirds (2/3) of the total gross income from all sources for the income year, may file such declaration and pay the estimated tax on or before the fifteenth day of the second month after the close of the income year, or in lieu of filing any declaration, may file an income tax return and pay the tax on or before the fifteenth day of the third month after the close of the income year; (iii) The penalty provided in this subdivision (6) shall not be applicable when the original amount of estimated tax is the same amount shown to be due by the return of the taxpayer for the preceding income year when such return showing a liability for tax was filed by the taxpayer for the preceding income year of twelve (12) months; (iv) In lieu of filing the fourth quarter installment, the taxpayer may file an income tax return and pay the tax on or before January 31, or on the last day of the first month after the close of the income year; (v) No penalty shall be imposed for a tax year if: (a) The preceding tax year was a tax year of twelve (12) months; (b) The taxpayer did not have a tax liability for the preceding tax year; and (c) The taxpayer was a resident of Arkansas throughout the preceding tax year; (vi) No penalty shall be imposed with respect to any underpayment to the extent that the secretary determines that by reasons of casualty, disaster, or other unusual circumstances the imposition of such penalty would be against equity and good conscience; and (vii) No penalty shall be imposed with respect to any underestimate or underpayment if the secretary determines that: (a) In the year for which such estimated payment was required to be made or in the tax year preceding such tax year, the taxpayer: (1) Retired after having attained sixty-two (62) years of age; or (2) Became disabled; and (b) Such underpayment was due to reasonable cause and not to willful neglect; (7) In addition to any other penalty provided by law, there shall be assessed a penalty of five hundred dollars ($500) if any taxpayer: (A) Files what purports to be a return, but the purported return does not contain information on which the substantial correctness of the return may be judged, and the conduct is due to a position which is frivolous or an effort to delay or impede the administration of any state tax law; (B) Files what purports to be a return, but the purported return contains information that on its face indicates that the return is substantially incorrect, and the conduct is due to a position which is frivolous or an effort to delay or impede the administration of any state tax law; or (C) Asserts or relies upon any grounds in defense or avoidance of a proposed assessment of tax, penalty, or interest, and the conduct is due to a position which is frivolous or an effort to delay or impede the administration of any state tax law; (8) All penalties or additions to tax and interest imposed by any state tax law are assessable and collectible by the secretary as a part of the tax due and owing; and (9) (A) If any person makes payment to the secretary for any taxes, licenses, or fees imposed by any laws of this state by means of a check, draft, order, electronic funds transfer, or any other form of presentment involving the transmission of account information for the payment of money upon any bank, person, firm, or corporation having insufficient funds in or on deposit with the bank, person, firm, or corporation for the payment of the check, draft, order, electronic funds transfer, or any other form of presentment, the secretary may impose a penalty of ten percent (10%) of the face amount of the check, draft, order, electronic funds transfer, or any other form of presentment or twenty dollars ($20.00), whichever is greater, against the maker or drawer of the check, draft, order, electronic funds transfer, or any other form of presentment. (B) This subdivision (9) shall not apply if the person establishes to the satisfaction of the secretary that he or she tendered the check, draft, order, electronic funds transfer, or any other form of presentment in good faith and with reasonable cause to believe it would be duly paid. Amended by Act 2019, No. 315,§ 2936, eff. 7/24/2019. Acts 1979, No. 401, § 41; 1981, No. 914, § 6; A.S.A. 1947, § 84-4741; Acts 1987, No. 502, § 13; 1989, No. 826, § 14; 1991, No. 815, §§ 1, 2; 1997, No. 702, § 1; 1999, No. 1126, § 7; 2003, No. 1084, § 1.

In addition to the criminal penalties provided by this chapter, if a taxpayer shall fail to comply with certain provisions of this chapter, then the following penalties and additions to tax shall be applicable:

(1) In the case of a taxpayer's failure to file any return required by any state tax law on or before the date prescribed determined with regard to any extension of time for filing the return, unless it is shown that the failure is due to reasonable cause and not to willful neglect, there shall be added to the amount required to be shown as tax on the return five percent (5%) of the amount of the tax if the failure is not more than one (1) month, with an additional five percent (5%) for each additional month or fraction of a month during which the failure continues, not to exceed thirty-five percent (35%) in the aggregate;

(2) (A) In case of a failure to pay the amount shown as tax on any return required to be filed under any state tax law, except an individual income tax return, on or before the date prescribed for payment of the tax, unless it is shown that the failure to pay is due to reasonable cause and not to willful neglect, there shall be added to the amount shown as tax on the return five percent (5%) of the amount of the tax if the failure is for not more than one (1) month, with an additional five percent (5%) for each additional month or fraction of a month during which the failure continues, not to exceed thirty-five percent (35%) in the aggregate. (B) In case of failure to pay the amount shown as tax on any individual income tax return required to be filed, on or before the date prescribed for payment of the tax, unless it is shown that the failure to pay is due to reasonable cause and not to willful neglect, there shall be added to the amount shown as tax on the return one percent (1%) of the amount of the tax if the failure is for not more than one (1) month, with an additional one percent (1%) for each additional month or fraction of a month during which the failure continues, not to exceed thirty-five percent (35%) in the aggregate;

(A) In case of a failure to pay the amount shown as tax on any return required to be filed under any state tax law, except an individual income tax return, on or before the date prescribed for payment of the tax, unless it is shown that the failure to pay is due to reasonable cause and not to willful neglect, there shall be added to the amount shown as tax on the return five percent (5%) of the amount of the tax if the failure is for not more than one (1) month, with an additional five percent (5%) for each additional month or fraction of a month during which the failure continues, not to exceed thirty-five percent (35%) in the aggregate.

(B) In case of failure to pay the amount shown as tax on any individual income tax return required to be filed, on or before the date prescribed for payment of the tax, unless it is shown that the failure to pay is due to reasonable cause and not to willful neglect, there shall be added to the amount shown as tax on the return one percent (1%) of the amount of the tax if the failure is for not more than one (1) month, with an additional one percent (1%) for each additional month or fraction of a month during which the failure continues, not to exceed thirty-five percent (35%) in the aggregate;

(3) (A) (i) If any penalty is assessed under subdivision (1) of this section, then no penalty shall be assessed under subdivision (2)(A) of this section. (ii) If any penalty is assessed under subdivision (2)(A) of this section, then no penalty shall be assessed under subdivision (1) of this section; (B) With respect to any individual income tax return, the amount of the addition under subdivision (1) of this section shall be increased by the amount of the addition under subdivision (2)(B) of this section for any month or fraction of a month to which an addition to tax applies under both subdivisions (1) and (2)(B) of this section, not to exceed thirty-five percent (35%) in the aggregate;

(A) (i) If any penalty is assessed under subdivision (1) of this section, then no penalty shall be assessed under subdivision (2)(A) of this section. (ii) If any penalty is assessed under subdivision (2)(A) of this section, then no penalty shall be assessed under subdivision (1) of this section;

(i) If any penalty is assessed under subdivision (1) of this section, then no penalty shall be assessed under subdivision (2)(A) of this section.

(ii) If any penalty is assessed under subdivision (2)(A) of this section, then no penalty shall be assessed under subdivision (1) of this section;

(B) With respect to any individual income tax return, the amount of the addition under subdivision (1) of this section shall be increased by the amount of the addition under subdivision (2)(B) of this section for any month or fraction of a month to which an addition to tax applies under both subdivisions (1) and (2)(B) of this section, not to exceed thirty-five percent (35%) in the aggregate;

(4) (A) If any part of a deficiency in taxes is determined to be due to negligence or intentional disregard of rules promulgated under the authority of this subchapter or any state tax law, then the Secretary of the Department of Finance and Administration shall add a penalty of ten percent (10%) of the total amount of the deficiency in addition to any interest provided by law. (B) However, if any penalty is assessed under subdivisions (1)-(3) of this section, then no penalty shall be assessed under subdivision (4)(A) of this section;

(A) If any part of a deficiency in taxes is determined to be due to negligence or intentional disregard of rules promulgated under the authority of this subchapter or any state tax law, then the Secretary of the Department of Finance and Administration shall add a penalty of ten percent (10%) of the total amount of the deficiency in addition to any interest provided by law.

(B) However, if any penalty is assessed under subdivisions (1)-(3) of this section, then no penalty shall be assessed under subdivision (4)(A) of this section;

(5) (A) If any part of any deficiency of any state tax required to be shown on a return is determined to be due to fraud, there shall be added to the tax an amount equal to fifty percent (50%) of the deficiency in addition to any interest provided by law. (B) If any penalty is assessed under subdivision (5)(A) of this section, then no penalty shall be assessed under subdivisions (1)-(4) of this section;

(A) If any part of any deficiency of any state tax required to be shown on a return is determined to be due to fraud, there shall be added to the tax an amount equal to fifty percent (50%) of the deficiency in addition to any interest provided by law.

(B) If any penalty is assessed under subdivision (5)(A) of this section, then no penalty shall be assessed under subdivisions (1)-(4) of this section;

(6) (A) (i) If a taxpayer fails to make a declaration of estimated tax and pay on any quarterly due date the equivalent to at least ninety percent (90%) of the amount actually due, there shall be added a penalty of ten percent (10%) per annum to the amount of the underestimate. (ii) The ten percent (10%) per annum penalty shall be applied on a quarterly basis. (iii) A taxpayer who has an uneven income may compute the ten percent (10%) penalty on an annualized basis. (B) The penalty provided in this subdivision (6) for failure to make correct payments of estimated income tax shall not be applied to the following exceptions: (i) No penalty shall be imposed for a tax year if the tax shown on the return for such tax year is one thousand dollars ($1,000) or less; (ii) A taxpayer whose income from farming for the income year can reasonably be expected to amount to at least two-thirds (2/3) of the total gross income from all sources for the income year, may file such declaration and pay the estimated tax on or before the fifteenth day of the second month after the close of the income year, or in lieu of filing any declaration, may file an income tax return and pay the tax on or before the fifteenth day of the third month after the close of the income year; (iii) The penalty provided in this subdivision (6) shall not be applicable when the original amount of estimated tax is the same amount shown to be due by the return of the taxpayer for the preceding income year when such return showing a liability for tax was filed by the taxpayer for the preceding income year of twelve (12) months; (iv) In lieu of filing the fourth quarter installment, the taxpayer may file an income tax return and pay the tax on or before January 31, or on the last day of the first month after the close of the income year; (v) No penalty shall be imposed for a tax year if: (a) The preceding tax year was a tax year of twelve (12) months; (b) The taxpayer did not have a tax liability for the preceding tax year; and (c) The taxpayer was a resident of Arkansas throughout the preceding tax year; (vi) No penalty shall be imposed with respect to any underpayment to the extent that the secretary determines that by reasons of casualty, disaster, or other unusual circumstances the imposition of such penalty would be against equity and good conscience; and (vii) No penalty shall be imposed with respect to any underestimate or underpayment if the secretary determines that: (a) In the year for which such estimated payment was required to be made or in the tax year preceding such tax year, the taxpayer: (1) Retired after having attained sixty-two (62) years of age; or (2) Became disabled; and (b) Such underpayment was due to reasonable cause and not to willful neglect;

(A) (i) If a taxpayer fails to make a declaration of estimated tax and pay on any quarterly due date the equivalent to at least ninety percent (90%) of the amount actually due, there shall be added a penalty of ten percent (10%) per annum to the amount of the underestimate. (ii) The ten percent (10%) per annum penalty shall be applied on a quarterly basis. (iii) A taxpayer who has an uneven income may compute the ten percent (10%) penalty on an annualized basis.

(i) If a taxpayer fails to make a declaration of estimated tax and pay on any quarterly due date the equivalent to at least ninety percent (90%) of the amount actually due, there shall be added a penalty of ten percent (10%) per annum to the amount of the underestimate.

(ii) The ten percent (10%) per annum penalty shall be applied on a quarterly basis.

(iii) A taxpayer who has an uneven income may compute the ten percent (10%) penalty on an annualized basis.

(B) The penalty provided in this subdivision (6) for failure to make correct payments of estimated income tax shall not be applied to the following exceptions: (i) No penalty shall be imposed for a tax year if the tax shown on the return for such tax year is one thousand dollars ($1,000) or less; (ii) A taxpayer whose income from farming for the income year can reasonably be expected to amount to at least two-thirds (2/3) of the total gross income from all sources for the income year, may file such declaration and pay the estimated tax on or before the fifteenth day of the second month after the close of the income year, or in lieu of filing any declaration, may file an income tax return and pay the tax on or before the fifteenth day of the third month after the close of the income year; (iii) The penalty provided in this subdivision (6) shall not be applicable when the original amount of estimated tax is the same amount shown to be due by the return of the taxpayer for the preceding income year when such return showing a liability for tax was filed by the taxpayer for the preceding income year of twelve (12) months; (iv) In lieu of filing the fourth quarter installment, the taxpayer may file an income tax return and pay the tax on or before January 31, or on the last day of the first month after the close of the income year; (v) No penalty shall be imposed for a tax year if: (a) The preceding tax year was a tax year of twelve (12) months; (b) The taxpayer did not have a tax liability for the preceding tax year; and (c) The taxpayer was a resident of Arkansas throughout the preceding tax year; (vi) No penalty shall be imposed with respect to any underpayment to the extent that the secretary determines that by reasons of casualty, disaster, or other unusual circumstances the imposition of such penalty would be against equity and good conscience; and (vii) No penalty shall be imposed with respect to any underestimate or underpayment if the secretary determines that: (a) In the year for which such estimated payment was required to be made or in the tax year preceding such tax year, the taxpayer: (1) Retired after having attained sixty-two (62) years of age; or (2) Became disabled; and (b) Such underpayment was due to reasonable cause and not to willful neglect;

(i) No penalty shall be imposed for a tax year if the tax shown on the return for such tax year is one thousand dollars ($1,000) or less;

(ii) A taxpayer whose income from farming for the income year can reasonably be expected to amount to at least two-thirds (2/3) of the total gross income from all sources for the income year, may file such declaration and pay the estimated tax on or before the fifteenth day of the second month after the close of the income year, or in lieu of filing any declaration, may file an income tax return and pay the tax on or before the fifteenth day of the third month after the close of the income year;

(iii) The penalty provided in this subdivision (6) shall not be applicable when the original amount of estimated tax is the same amount shown to be due by the return of the taxpayer for the preceding income year when such return showing a liability for tax was filed by the taxpayer for the preceding income year of twelve (12) months;

(iv) In lieu of filing the fourth quarter installment, the taxpayer may file an income tax return and pay the tax on or before January 31, or on the last day of the first month after the close of the income year;

(v) No penalty shall be imposed for a tax year if: (a) The preceding tax year was a tax year of twelve (12) months; (b) The taxpayer did not have a tax liability for the preceding tax year; and (c) The taxpayer was a resident of Arkansas throughout the preceding tax year;

(a) The preceding tax year was a tax year of twelve (12) months;

(b) The taxpayer did not have a tax liability for the preceding tax year; and

(c) The taxpayer was a resident of Arkansas throughout the preceding tax year;

(vi) No penalty shall be imposed with respect to any underpayment to the extent that the secretary determines that by reasons of casualty, disaster, or other unusual circumstances the imposition of such penalty would be against equity and good conscience; and

(vii) No penalty shall be imposed with respect to any underestimate or underpayment if the secretary determines that: (a) In the year for which such estimated payment was required to be made or in the tax year preceding such tax year, the taxpayer: (1) Retired after having attained sixty-two (62) years of age; or (2) Became disabled; and (b) Such underpayment was due to reasonable cause and not to willful neglect;

(a) In the year for which such estimated payment was required to be made or in the tax year preceding such tax year, the taxpayer: (1) Retired after having attained sixty-two (62) years of age; or (2) Became disabled; and

(1) Retired after having attained sixty-two (62) years of age; or

(2) Became disabled; and

(b) Such underpayment was due to reasonable cause and not to willful neglect;

(7) In addition to any other penalty provided by law, there shall be assessed a penalty of five hundred dollars ($500) if any taxpayer: (A) Files what purports to be a return, but the purported return does not contain information on which the substantial correctness of the return may be judged, and the conduct is due to a position which is frivolous or an effort to delay or impede the administration of any state tax law; (B) Files what purports to be a return, but the purported return contains information that on its face indicates that the return is substantially incorrect, and the conduct is due to a position which is frivolous or an effort to delay or impede the administration of any state tax law; or (C) Asserts or relies upon any grounds in defense or avoidance of a proposed assessment of tax, penalty, or interest, and the conduct is due to a position which is frivolous or an effort to delay or impede the administration of any state tax law;

(A) Files what purports to be a return, but the purported return does not contain information on which the substantial correctness of the return may be judged, and the conduct is due to a position which is frivolous or an effort to delay or impede the administration of any state tax law;

(B) Files what purports to be a return, but the purported return contains information that on its face indicates that the return is substantially incorrect, and the conduct is due to a position which is frivolous or an effort to delay or impede the administration of any state tax law; or

(C) Asserts or relies upon any grounds in defense or avoidance of a proposed assessment of tax, penalty, or interest, and the conduct is due to a position which is frivolous or an effort to delay or impede the administration of any state tax law;

(8) All penalties or additions to tax and interest imposed by any state tax law are assessable and collectible by the secretary as a part of the tax due and owing; and

(9) (A) If any person makes payment to the secretary for any taxes, licenses, or fees imposed by any laws of this state by means of a check, draft, order, electronic funds transfer, or any other form of presentment involving the transmission of account information for the payment of money upon any bank, person, firm, or corporation having insufficient funds in or on deposit with the bank, person, firm, or corporation for the payment of the check, draft, order, electronic funds transfer, or any other form of presentment, the secretary may impose a penalty of ten percent (10%) of the face amount of the check, draft, order, electronic funds transfer, or any other form of presentment or twenty dollars ($20.00), whichever is greater, against the maker or drawer of the check, draft, order, electronic funds transfer, or any other form of presentment. (B) This subdivision (9) shall not apply if the person establishes to the satisfaction of the secretary that he or she tendered the check, draft, order, electronic funds transfer, or any other form of presentment in good faith and with reasonable cause to believe it would be duly paid.

(A) If any person makes payment to the secretary for any taxes, licenses, or fees imposed by any laws of this state by means of a check, draft, order, electronic funds transfer, or any other form of presentment involving the transmission of account information for the payment of money upon any bank, person, firm, or corporation having insufficient funds in or on deposit with the bank, person, firm, or corporation for the payment of the check, draft, order, electronic funds transfer, or any other form of presentment, the secretary may impose a penalty of ten percent (10%) of the face amount of the check, draft, order, electronic funds transfer, or any other form of presentment or twenty dollars ($20.00), whichever is greater, against the maker or drawer of the check, draft, order, electronic funds transfer, or any other form of presentment.

(B) This subdivision (9) shall not apply if the person establishes to the satisfaction of the secretary that he or she tendered the check, draft, order, electronic funds transfer, or any other form of presentment in good faith and with reasonable cause to believe it would be duly paid.

Amended by Act 2019, No. 315,§ 2936, eff. 7/24/2019.

Acts 1979, No. 401, § 41; 1981, No. 914, § 6; A.S.A. 1947, § 84-4741; Acts 1987, No. 502, § 13; 1989, No. 826, § 14; 1991, No. 815, §§ 1, 2; 1997, No. 702, § 1; 1999, No. 1126, § 7; 2003, No. 1084, § 1.
Ark. Code Ann. § 26-51-1404 — AR Code / Title 26 / Chapter 51 / Subchapter 14 / Section 26-51-1404
Property values
Status: in_force

(a) (1) The value of real property and tangible personal property owned by the taxpayer is the original cost or other basis of such property for federal income tax purposes without regard to depletion, depreciation, or amortization. (2) (A) Loans are valued at their outstanding principal balance, without regard to any reserve for bad debts. (B) If a loan is charged off, in whole or in part, for federal income tax purposes, the portion of the loan charged off is not outstanding. (C) A specifically allocated reserve established pursuant to regulatory or financial accounting guidelines that is treated as charged off for federal income tax purposes shall be treated as charged off for purposes of this section. (3) (A) Credit card receivables are valued at their outstanding principal balance, without regard to any reserve for bad debts. (B) If a credit card receivable is charged off, in whole or in part, for federal income tax purposes, the portion of the receivable charged off is not outstanding. (b) (1) The average value of property owned by the taxpayer is computed on an annual basis by adding the value of the property on the first day of the taxable year and the value on the last day of the taxable year and dividing the sum by two (2). (2) If averaging on this basis does not properly reflect average value, the Secretary of the Department of Finance and Administration may require averaging on a more frequent basis. (3) The taxpayer may elect to average on a more frequent basis. (4) When averaging on a more frequent basis is required by the secretary or is elected by the taxpayer, the same method of valuation shall be used consistently by the taxpayer with respect to property within and without this state and on all subsequent returns unless the taxpayer receives prior permission from the secretary or the secretary requires a different method of determining average value. Amended by Act 2019, No. 822,§ 15, eff. 1/1/2021. Amended by Act 2019, No. 910,§ 3789, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 3788, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 3787, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 3786, eff. 7/1/2019. Acts 1995, No. 495, § 1.

(a) (1) The value of real property and tangible personal property owned by the taxpayer is the original cost or other basis of such property for federal income tax purposes without regard to depletion, depreciation, or amortization. (2) (A) Loans are valued at their outstanding principal balance, without regard to any reserve for bad debts. (B) If a loan is charged off, in whole or in part, for federal income tax purposes, the portion of the loan charged off is not outstanding. (C) A specifically allocated reserve established pursuant to regulatory or financial accounting guidelines that is treated as charged off for federal income tax purposes shall be treated as charged off for purposes of this section. (3) (A) Credit card receivables are valued at their outstanding principal balance, without regard to any reserve for bad debts. (B) If a credit card receivable is charged off, in whole or in part, for federal income tax purposes, the portion of the receivable charged off is not outstanding.

(1) The value of real property and tangible personal property owned by the taxpayer is the original cost or other basis of such property for federal income tax purposes without regard to depletion, depreciation, or amortization.

(2) (A) Loans are valued at their outstanding principal balance, without regard to any reserve for bad debts. (B) If a loan is charged off, in whole or in part, for federal income tax purposes, the portion of the loan charged off is not outstanding. (C) A specifically allocated reserve established pursuant to regulatory or financial accounting guidelines that is treated as charged off for federal income tax purposes shall be treated as charged off for purposes of this section.

(A) Loans are valued at their outstanding principal balance, without regard to any reserve for bad debts.

(B) If a loan is charged off, in whole or in part, for federal income tax purposes, the portion of the loan charged off is not outstanding.

(C) A specifically allocated reserve established pursuant to regulatory or financial accounting guidelines that is treated as charged off for federal income tax purposes shall be treated as charged off for purposes of this section.

(3) (A) Credit card receivables are valued at their outstanding principal balance, without regard to any reserve for bad debts. (B) If a credit card receivable is charged off, in whole or in part, for federal income tax purposes, the portion of the receivable charged off is not outstanding.

(A) Credit card receivables are valued at their outstanding principal balance, without regard to any reserve for bad debts.

(B) If a credit card receivable is charged off, in whole or in part, for federal income tax purposes, the portion of the receivable charged off is not outstanding.

(b) (1) The average value of property owned by the taxpayer is computed on an annual basis by adding the value of the property on the first day of the taxable year and the value on the last day of the taxable year and dividing the sum by two (2). (2) If averaging on this basis does not properly reflect average value, the Secretary of the Department of Finance and Administration may require averaging on a more frequent basis. (3) The taxpayer may elect to average on a more frequent basis. (4) When averaging on a more frequent basis is required by the secretary or is elected by the taxpayer, the same method of valuation shall be used consistently by the taxpayer with respect to property within and without this state and on all subsequent returns unless the taxpayer receives prior permission from the secretary or the secretary requires a different method of determining average value.

(1) The average value of property owned by the taxpayer is computed on an annual basis by adding the value of the property on the first day of the taxable year and the value on the last day of the taxable year and dividing the sum by two (2).

(2) If averaging on this basis does not properly reflect average value, the Secretary of the Department of Finance and Administration may require averaging on a more frequent basis.

(3) The taxpayer may elect to average on a more frequent basis.

(4) When averaging on a more frequent basis is required by the secretary or is elected by the taxpayer, the same method of valuation shall be used consistently by the taxpayer with respect to property within and without this state and on all subsequent returns unless the taxpayer receives prior permission from the secretary or the secretary requires a different method of determining average value.

Amended by Act 2019, No. 822,§ 15, eff. 1/1/2021.

Amended by Act 2019, No. 910,§ 3789, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 3788, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 3787, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 3786, eff. 7/1/2019.

Acts 1995, No. 495, § 1.
Ark. Code Ann. § 26-26-1118 — AR Code / Title 26 / Chapter 26 / Subchapter 11 / Section 26-26-1118
[Effective Until 90 days after sine die adjournment] Limitation on increase of property's assessed value
Status: in_force

(a) (1) (A) There is established a homestead property tax credit for each assessment year that reduces the amount of real property taxes assessed on the homestead of each property owner by four hundred twenty-five dollars ($425). (B) However, an assessment shall not be reduced to less than zero dollars ($0.00). (2) Each property owner shall pay the reduced tax amount to the county. (3) The homestead property tax credit adopted by this section shall be reflected on the tax bill sent to the property owner by the county collector. (4) The county and taxing units within the county are entitled to reimbursement of the tax reduction resulting from the homestead property tax credit in accordance with § 26-26-310 . (b) (1) Each county assessor is responsible for identifying the parcels of real property that are used as homestead residences before issuing tax bills. (2) (A) (i) Each property owner shall register with the county assessor proof of eligibility for the property tax credit if the property owner intends to claim a property tax credit. (ii) For property owned by a limited liability company, proof of eligibility shall include without limitation: (a) A certificate of good standing from the Secretary of State for the limited liability company; and (b) A signed attestation by the member or members claiming the property tax credit stating that the member or members are not claiming the property tax credit for any other property. (B) (i) The registration may be attached to the deed or other instrument conveying an interest in real property and filed with the circuit clerk, who shall remit the registration to the county assessor. (ii) The circuit clerk shall not file the registration described in this subdivision (b)(2). (C) The property owner may submit a registration for the property tax credit directly to the county assessor. (3) (A) The homestead property tax credit authorized by subdivision (a)(1) of this section is not allowed after October 15 of the year after the assessment. (B) If October 15 falls on a Saturday, Sunday, or holiday observed by the United States Postal Service, the homestead property tax credit is allowed on, but no later than, the following business day that is not a holiday observed by the United States Postal Service. (4) (A) A parcel of real property shall qualify as a homestead prior to January 1 of the year after assessment to be eligible for the property tax credit. (B) Once a parcel of real property is determined to be eligible for the property tax credit, the parcel of real property shall remain eligible for that year regardless of a change in the use of the parcel of real property during the year. (C) Under no circumstance may a property owner claim more than one (1) homestead property tax credit per calendar year. (5) (A) The parties to a transfer of real property may prorate, as between themselves, the property tax credit and the benefits of the property tax credit by agreement of the parties. (B) If a parcel of real property qualifies for the property tax credit, the property tax credit shall apply regardless of who or what entity pays the property tax. (6) (A) When real property is transferred, the purchaser of the real property shall notify the county assessor of the new use of the real property. (B) The notification may be by affidavit provided by the purchaser of the real property or on a form provided by the county assessor. (7) The Division of Vital Records shall send to the county assessor by electronic mail a monthly report listing the residents of that county who have died. Amended by Act 2023, No. 541,§ 1, eff. 8/1/2023, app. for assessment years beginning on or after January 1, 2024. Amended by Act 2023, No. 315,§ 1, eff. 1/1/2023, app. for assessment years beginning on or after January 1, 2023. Amended by Act 2019, No. 808,§ 2, eff. 4/9/2019. Amended by Act 2017, No. 152,§ 1, eff. 8/1/2017. Amended by Act 2017, No. 49,§ 1, eff. 1/26/2017. Amended by Act 2013, No. 501,§ 10, eff. 8/16/2013. Acts 2000 (2d Ex. Sess.), Nos. 1 and 2, § 6; 2001, No. 1544, § 3; 2001, No. 1598, § 1; 2003, No. 864, § 1; 2005, No. 1268, § 1; 2005, No. 1892, § 1; 2007, No. 142, § 1; 2007, No. 827, § 202; 2009, No. 655, § 4; 2011, No. 175, § 7. This section is set out more than once due to postponed, multiple, or conflicting amendments.

(a) (1) (A) There is established a homestead property tax credit for each assessment year that reduces the amount of real property taxes assessed on the homestead of each property owner by four hundred twenty-five dollars ($425). (B) However, an assessment shall not be reduced to less than zero dollars ($0.00). (2) Each property owner shall pay the reduced tax amount to the county. (3) The homestead property tax credit adopted by this section shall be reflected on the tax bill sent to the property owner by the county collector. (4) The county and taxing units within the county are entitled to reimbursement of the tax reduction resulting from the homestead property tax credit in accordance with § 26-26-310 .

(1) (A) There is established a homestead property tax credit for each assessment year that reduces the amount of real property taxes assessed on the homestead of each property owner by four hundred twenty-five dollars ($425). (B) However, an assessment shall not be reduced to less than zero dollars ($0.00).

(A) There is established a homestead property tax credit for each assessment year that reduces the amount of real property taxes assessed on the homestead of each property owner by four hundred twenty-five dollars ($425).

(B) However, an assessment shall not be reduced to less than zero dollars ($0.00).

(2) Each property owner shall pay the reduced tax amount to the county.

(3) The homestead property tax credit adopted by this section shall be reflected on the tax bill sent to the property owner by the county collector.

(4) The county and taxing units within the county are entitled to reimbursement of the tax reduction resulting from the homestead property tax credit in accordance with § 26-26-310 .

(b) (1) Each county assessor is responsible for identifying the parcels of real property that are used as homestead residences before issuing tax bills. (2) (A) (i) Each property owner shall register with the county assessor proof of eligibility for the property tax credit if the property owner intends to claim a property tax credit. (ii) For property owned by a limited liability company, proof of eligibility shall include without limitation: (a) A certificate of good standing from the Secretary of State for the limited liability company; and (b) A signed attestation by the member or members claiming the property tax credit stating that the member or members are not claiming the property tax credit for any other property. (B) (i) The registration may be attached to the deed or other instrument conveying an interest in real property and filed with the circuit clerk, who shall remit the registration to the county assessor. (ii) The circuit clerk shall not file the registration described in this subdivision (b)(2). (C) The property owner may submit a registration for the property tax credit directly to the county assessor. (3) (A) The homestead property tax credit authorized by subdivision (a)(1) of this section is not allowed after October 15 of the year after the assessment. (B) If October 15 falls on a Saturday, Sunday, or holiday observed by the United States Postal Service, the homestead property tax credit is allowed on, but no later than, the following business day that is not a holiday observed by the United States Postal Service. (4) (A) A parcel of real property shall qualify as a homestead prior to January 1 of the year after assessment to be eligible for the property tax credit. (B) Once a parcel of real property is determined to be eligible for the property tax credit, the parcel of real property shall remain eligible for that year regardless of a change in the use of the parcel of real property during the year. (C) Under no circumstance may a property owner claim more than one (1) homestead property tax credit per calendar year. (5) (A) The parties to a transfer of real property may prorate, as between themselves, the property tax credit and the benefits of the property tax credit by agreement of the parties. (B) If a parcel of real property qualifies for the property tax credit, the property tax credit shall apply regardless of who or what entity pays the property tax. (6) (A) When real property is transferred, the purchaser of the real property shall notify the county assessor of the new use of the real property. (B) The notification may be by affidavit provided by the purchaser of the real property or on a form provided by the county assessor. (7) The Division of Vital Records shall send to the county assessor by electronic mail a monthly report listing the residents of that county who have died.

(1) Each county assessor is responsible for identifying the parcels of real property that are used as homestead residences before issuing tax bills.

(2) (A) (i) Each property owner shall register with the county assessor proof of eligibility for the property tax credit if the property owner intends to claim a property tax credit. (ii) For property owned by a limited liability company, proof of eligibility shall include without limitation: (a) A certificate of good standing from the Secretary of State for the limited liability company; and (b) A signed attestation by the member or members claiming the property tax credit stating that the member or members are not claiming the property tax credit for any other property. (B) (i) The registration may be attached to the deed or other instrument conveying an interest in real property and filed with the circuit clerk, who shall remit the registration to the county assessor. (ii) The circuit clerk shall not file the registration described in this subdivision (b)(2). (C) The property owner may submit a registration for the property tax credit directly to the county assessor.

(A) (i) Each property owner shall register with the county assessor proof of eligibility for the property tax credit if the property owner intends to claim a property tax credit. (ii) For property owned by a limited liability company, proof of eligibility shall include without limitation: (a) A certificate of good standing from the Secretary of State for the limited liability company; and (b) A signed attestation by the member or members claiming the property tax credit stating that the member or members are not claiming the property tax credit for any other property.

(i) Each property owner shall register with the county assessor proof of eligibility for the property tax credit if the property owner intends to claim a property tax credit.

(ii) For property owned by a limited liability company, proof of eligibility shall include without limitation: (a) A certificate of good standing from the Secretary of State for the limited liability company; and (b) A signed attestation by the member or members claiming the property tax credit stating that the member or members are not claiming the property tax credit for any other property.

(a) A certificate of good standing from the Secretary of State for the limited liability company; and

(b) A signed attestation by the member or members claiming the property tax credit stating that the member or members are not claiming the property tax credit for any other property.

(B) (i) The registration may be attached to the deed or other instrument conveying an interest in real property and filed with the circuit clerk, who shall remit the registration to the county assessor. (ii) The circuit clerk shall not file the registration described in this subdivision (b)(2).

(i) The registration may be attached to the deed or other instrument conveying an interest in real property and filed with the circuit clerk, who shall remit the registration to the county assessor.

(ii) The circuit clerk shall not file the registration described in this subdivision (b)(2).

(C) The property owner may submit a registration for the property tax credit directly to the county assessor.

(3) (A) The homestead property tax credit authorized by subdivision (a)(1) of this section is not allowed after October 15 of the year after the assessment. (B) If October 15 falls on a Saturday, Sunday, or holiday observed by the United States Postal Service, the homestead property tax credit is allowed on, but no later than, the following business day that is not a holiday observed by the United States Postal Service.

(A) The homestead property tax credit authorized by subdivision (a)(1) of this section is not allowed after October 15 of the year after the assessment.

(B) If October 15 falls on a Saturday, Sunday, or holiday observed by the United States Postal Service, the homestead property tax credit is allowed on, but no later than, the following business day that is not a holiday observed by the United States Postal Service.

(4) (A) A parcel of real property shall qualify as a homestead prior to January 1 of the year after assessment to be eligible for the property tax credit. (B) Once a parcel of real property is determined to be eligible for the property tax credit, the parcel of real property shall remain eligible for that year regardless of a change in the use of the parcel of real property during the year. (C) Under no circumstance may a property owner claim more than one (1) homestead property tax credit per calendar year.

(A) A parcel of real property shall qualify as a homestead prior to January 1 of the year after assessment to be eligible for the property tax credit.

(B) Once a parcel of real property is determined to be eligible for the property tax credit, the parcel of real property shall remain eligible for that year regardless of a change in the use of the parcel of real property during the year.

(C) Under no circumstance may a property owner claim more than one (1) homestead property tax credit per calendar year.

(5) (A) The parties to a transfer of real property may prorate, as between themselves, the property tax credit and the benefits of the property tax credit by agreement of the parties. (B) If a parcel of real property qualifies for the property tax credit, the property tax credit shall apply regardless of who or what entity pays the property tax.

(A) The parties to a transfer of real property may prorate, as between themselves, the property tax credit and the benefits of the property tax credit by agreement of the parties.

(B) If a parcel of real property qualifies for the property tax credit, the property tax credit shall apply regardless of who or what entity pays the property tax.

(6) (A) When real property is transferred, the purchaser of the real property shall notify the county assessor of the new use of the real property. (B) The notification may be by affidavit provided by the purchaser of the real property or on a form provided by the county assessor.

(A) When real property is transferred, the purchaser of the real property shall notify the county assessor of the new use of the real property.

(B) The notification may be by affidavit provided by the purchaser of the real property or on a form provided by the county assessor.

(7) The Division of Vital Records shall send to the county assessor by electronic mail a monthly report listing the residents of that county who have died.

Amended by Act 2023, No. 541,§ 1, eff. 8/1/2023, app. for assessment years beginning on or after January 1, 2024.

Amended by Act 2023, No. 315,§ 1, eff. 1/1/2023, app. for assessment years beginning on or after January 1, 2023.

Amended by Act 2019, No. 808,§ 2, eff. 4/9/2019.

Amended by Act 2017, No. 152,§ 1, eff. 8/1/2017.

Amended by Act 2017, No. 49,§ 1, eff. 1/26/2017.

Amended by Act 2013, No. 501,§ 10, eff. 8/16/2013.

Acts 2000 (2d Ex. Sess.), Nos. 1 and 2, § 6; 2001, No. 1544, § 3; 2001, No. 1598, § 1; 2003, No. 864, § 1; 2005, No. 1268, § 1; 2005, No. 1892, § 1; 2007, No. 142, § 1; 2007, No. 827, § 202; 2009, No. 655, § 4; 2011, No. 175, § 7.

This section is set out more than once due to postponed, multiple, or conflicting amendments.
Ark. Code Ann. § 26-26-1617 — AR Code / Title 26 / Chapter 26 / Subchapter 16 / Section 26-26-1617
Time limitation for collection
Status: in_force

(a) (1) Taxes and penalties certified to the Secretary of the Department of Finance and Administration under § 26-26-1614 shall be collected within ten (10) years from the date of certification to the secretary. (2) Taxes and penalties that have not been collected within ten (10) years from the date of certification to the secretary are uncollectible. (b) Taxes and penalties that become uncollectible under subsection (a) of this section shall be waived by the secretary. Added by Act 2021, No. 719,§ 1, eff. 7/28/2021.

(a) (1) Taxes and penalties certified to the Secretary of the Department of Finance and Administration under § 26-26-1614 shall be collected within ten (10) years from the date of certification to the secretary. (2) Taxes and penalties that have not been collected within ten (10) years from the date of certification to the secretary are uncollectible.

(1) Taxes and penalties certified to the Secretary of the Department of Finance and Administration under § 26-26-1614 shall be collected within ten (10) years from the date of certification to the secretary.

(2) Taxes and penalties that have not been collected within ten (10) years from the date of certification to the secretary are uncollectible.

(b) Taxes and penalties that become uncollectible under subsection (a) of this section shall be waived by the secretary.

Added by Act 2021, No. 719,§ 1, eff. 7/28/2021.
Ark. Code Ann. § 26-51-1508 — AR Code / Title 26 / Chapter 51 / Subchapter 15 / Section 26-51-1508
Development, operation, and tax credits
Status: in_force

(a) (1) All projects must be completed and properly functioning within three (3) years of the date of the certificate of tax credit approval, except if the Department of Agriculture determines that failure to comply with this subdivision (a)(1) is the result of conditions beyond the control of the taxpayer, an additional year to comply with this subdivision (a)(1) may be granted by the Department of Agriculture. (2) If the taxpayer does not complete the project within the period provided in subdivision (a)(1) of this section, all credits claimed must be repaid to the Revenue Division of the Department of Finance and Administration, and the project will be disallowed as a project for tax credit purposes. (b) (1) Project activities shall meet or exceed those standards as established by the Department of Agriculture, and the project must be maintained for a minimum life of ten (10) years after it is certified as being complete. (2) (A) If the taxpayer terminates the project prior to expiration of the minimum project life, the taxpayer shall provide written notification to the Department of Agriculture and the division. (B) In addition, the taxpayer shall file an amended tax return and repay the amount of tax credit claimed which was not allowable. (3) If the Department of Agriculture determines that the taxpayer has terminated the project, it shall notify the division. (4) (A) Upon the termination of the project, the taxpayer shall not be allowed any further tax credits provided in this subchapter and the division shall recapture the pro rata share of any tax credits claimed under this subchapter for the period of termination. (B) The pro rata share for recapture of the disallowed tax credits shall be determined by dividing the period of time from termination of the project until the expiration of the minimum life of the project by the required minimum life of the project times the tax credit claimed. (C) Notwithstanding the provisions of § 26-18-306 , the division may make necessary assessments to recapture disallowed tax credits for a period of three (3) years from the date of expiration of the minimum life of the project. Amended by Act 2023, No. 691,§ 219, eff. 7/1/2023. Amended by Act 2023, No. 691,§ 218, eff. 7/1/2023. Acts 1995, No. 561, § 8.

(a) (1) All projects must be completed and properly functioning within three (3) years of the date of the certificate of tax credit approval, except if the Department of Agriculture determines that failure to comply with this subdivision (a)(1) is the result of conditions beyond the control of the taxpayer, an additional year to comply with this subdivision (a)(1) may be granted by the Department of Agriculture. (2) If the taxpayer does not complete the project within the period provided in subdivision (a)(1) of this section, all credits claimed must be repaid to the Revenue Division of the Department of Finance and Administration, and the project will be disallowed as a project for tax credit purposes.

(1) All projects must be completed and properly functioning within three (3) years of the date of the certificate of tax credit approval, except if the Department of Agriculture determines that failure to comply with this subdivision (a)(1) is the result of conditions beyond the control of the taxpayer, an additional year to comply with this subdivision (a)(1) may be granted by the Department of Agriculture.

(2) If the taxpayer does not complete the project within the period provided in subdivision (a)(1) of this section, all credits claimed must be repaid to the Revenue Division of the Department of Finance and Administration, and the project will be disallowed as a project for tax credit purposes.

(b) (1) Project activities shall meet or exceed those standards as established by the Department of Agriculture, and the project must be maintained for a minimum life of ten (10) years after it is certified as being complete. (2) (A) If the taxpayer terminates the project prior to expiration of the minimum project life, the taxpayer shall provide written notification to the Department of Agriculture and the division. (B) In addition, the taxpayer shall file an amended tax return and repay the amount of tax credit claimed which was not allowable. (3) If the Department of Agriculture determines that the taxpayer has terminated the project, it shall notify the division. (4) (A) Upon the termination of the project, the taxpayer shall not be allowed any further tax credits provided in this subchapter and the division shall recapture the pro rata share of any tax credits claimed under this subchapter for the period of termination. (B) The pro rata share for recapture of the disallowed tax credits shall be determined by dividing the period of time from termination of the project until the expiration of the minimum life of the project by the required minimum life of the project times the tax credit claimed. (C) Notwithstanding the provisions of § 26-18-306 , the division may make necessary assessments to recapture disallowed tax credits for a period of three (3) years from the date of expiration of the minimum life of the project.

(1) Project activities shall meet or exceed those standards as established by the Department of Agriculture, and the project must be maintained for a minimum life of ten (10) years after it is certified as being complete.

(2) (A) If the taxpayer terminates the project prior to expiration of the minimum project life, the taxpayer shall provide written notification to the Department of Agriculture and the division. (B) In addition, the taxpayer shall file an amended tax return and repay the amount of tax credit claimed which was not allowable.

(A) If the taxpayer terminates the project prior to expiration of the minimum project life, the taxpayer shall provide written notification to the Department of Agriculture and the division.

(B) In addition, the taxpayer shall file an amended tax return and repay the amount of tax credit claimed which was not allowable.

(3) If the Department of Agriculture determines that the taxpayer has terminated the project, it shall notify the division.

(4) (A) Upon the termination of the project, the taxpayer shall not be allowed any further tax credits provided in this subchapter and the division shall recapture the pro rata share of any tax credits claimed under this subchapter for the period of termination. (B) The pro rata share for recapture of the disallowed tax credits shall be determined by dividing the period of time from termination of the project until the expiration of the minimum life of the project by the required minimum life of the project times the tax credit claimed. (C) Notwithstanding the provisions of § 26-18-306 , the division may make necessary assessments to recapture disallowed tax credits for a period of three (3) years from the date of expiration of the minimum life of the project.

(A) Upon the termination of the project, the taxpayer shall not be allowed any further tax credits provided in this subchapter and the division shall recapture the pro rata share of any tax credits claimed under this subchapter for the period of termination.

(B) The pro rata share for recapture of the disallowed tax credits shall be determined by dividing the period of time from termination of the project until the expiration of the minimum life of the project by the required minimum life of the project times the tax credit claimed.

(C) Notwithstanding the provisions of § 26-18-306 , the division may make necessary assessments to recapture disallowed tax credits for a period of three (3) years from the date of expiration of the minimum life of the project.

Amended by Act 2023, No. 691,§ 219, eff. 7/1/2023.

Amended by Act 2023, No. 691,§ 218, eff. 7/1/2023.

Acts 1995, No. 561, § 8.
Ark. Code Ann. § 26-58-116 — AR Code / Title 26 / Chapter 58 / Subchapter 1 / Section 26-58-116
Purchasers' reports and payment of tax - Penalties for noncompliance
Status: in_force

(a) Unless a purchaser of natural resources, excluding natural gas, is excused in writing by the Secretary of the Department of Finance and Administration in advance of the report filing deadline from filing a report, a purchaser of natural resources, excluding natural gas, shall file with the secretary a verified report within twenty (20) days after the end of each reporting period in a form or forms prescribed by the secretary that states: (1) The names and addresses of all producers from whom the purchaser has acquired natural resources during the respective reporting period; (2) The types and total quantity of each type of the natural resources acquired and the purchase price; and (3) Any other information as the secretary reasonably may require for the proper enforcement of this subchapter. (b) (1) Unless a purchaser of natural gas is excused in writing by the secretary in advance of the report filing deadline from filing a report, a purchaser of natural gas shall file with the secretary a report in a form or forms prescribed by the secretary that states: (A) The names, addresses, and severance tax permit numbers of all producers from whom the purchaser has purchased natural gas during each reporting period; (B) The total quantity of natural gas acquired and the purchase price; and (C) Any other information as the secretary may reasonably require for the proper enforcement of this subchapter. (2) The purchaser of natural gas shall file each report required under this subsection on or before the twenty-fifth day of the second month following the reporting period that is covered by the report. (c) (1) It is the duty of each purchaser of natural resources, excluding natural gas, to ascertain in advance of permitting the natural resources so purchased to be processed or otherwise changed from the natural state thereof at the time of severance or to be transported for the purpose of such processing or other change that the severance tax upon the natural resources has been paid. (2) Each purchaser of natural gas shall determine in advance of filing the report under subsection (b) of this section that each producer from whom the purchaser has purchased natural gas has been issued a severance tax permit number and furnish the secretary the severance tax permit number of each producer under subsection (b) of this section. (3) (A) The purchaser of natural resources, excluding natural gas, is primarily liable for any unpaid severance tax in the event of failure to make such advance ascertainment. (B) Each purchaser of natural gas is primarily liable for any unpaid severance tax that is attributable to a producer from whom the purchaser purchased natural gas if the purchaser fails to furnish the secretary with all of the information required in subsection (b) of this section. (4) However, the purchaser as a condition to permitting the processing or other change of such natural resources, excluding natural gas, as to which the severance tax shall not have been paid by the producer may himself or herself pay such tax either in advance or, with the advance written approval of the secretary for cause shown to the secretary, within twenty (20) days after commencing the processing or other change of the natural resources or the transportation thereof for such purpose. (d) (1) Unless the secretary has given advance written approval for the removal under subsection (a) of this section, the removal by the purchaser of natural resources, excluding natural gas, to any point of concentration or assembly, either inside or outside the state, without the severance tax having been previously paid by the producer or the purchaser is a fraudulent concealment of the location of the natural resources with the intent to avoid the payment of the severance tax. (2) Unless the secretary has given advance written approval for the removal, the removal by the producer, purchaser, or primary processor of any timber to any point outside the state without the severance tax having been paid on the timber is unlawful. (e) (1) Upon conviction, each removal described in subdivision (d)(1) of this section by the purchaser of natural resources, excluding natural gas, is a violation punishable by a fine of at least fifty dollars ($50.00) and not more than five hundred dollars ($500). (2) Upon conviction, each removal described in subdivision (d)(2) of this section by a producer, purchaser, or primary processor is a violation punishable by a fine of at least fifty dollars ($50.00) and not more than five hundred dollars ($500). (3) Upon conviction, each failure by a producer, purchaser, including a purchaser of natural gas, or primary processor to file a report required by this section is a violation punishable by a fine of at least fifty dollars ($50.00) and not more than five hundred dollars ($500). (4) Upon conviction, a person knowingly making a false material statement in a report required by this section is guilty of perjury under § 5-53-102 . Amended by Act 2019, No. 910,§ 4250, eff. 7/1/2019. Acts 1947, No. 136, § 7; 1955, No. 100, § 1; 1983, No. 254, § 6; A.S.A. 1947, § 84-2107; Acts 2009, No. 145, § 2; 2009, No. 655, § 102; 2011, No. 278, §§ 3, 4.

(a) Unless a purchaser of natural resources, excluding natural gas, is excused in writing by the Secretary of the Department of Finance and Administration in advance of the report filing deadline from filing a report, a purchaser of natural resources, excluding natural gas, shall file with the secretary a verified report within twenty (20) days after the end of each reporting period in a form or forms prescribed by the secretary that states: (1) The names and addresses of all producers from whom the purchaser has acquired natural resources during the respective reporting period; (2) The types and total quantity of each type of the natural resources acquired and the purchase price; and (3) Any other information as the secretary reasonably may require for the proper enforcement of this subchapter.

(1) The names and addresses of all producers from whom the purchaser has acquired natural resources during the respective reporting period;

(2) The types and total quantity of each type of the natural resources acquired and the purchase price; and

(3) Any other information as the secretary reasonably may require for the proper enforcement of this subchapter.

(b) (1) Unless a purchaser of natural gas is excused in writing by the secretary in advance of the report filing deadline from filing a report, a purchaser of natural gas shall file with the secretary a report in a form or forms prescribed by the secretary that states: (A) The names, addresses, and severance tax permit numbers of all producers from whom the purchaser has purchased natural gas during each reporting period; (B) The total quantity of natural gas acquired and the purchase price; and (C) Any other information as the secretary may reasonably require for the proper enforcement of this subchapter. (2) The purchaser of natural gas shall file each report required under this subsection on or before the twenty-fifth day of the second month following the reporting period that is covered by the report.

(1) Unless a purchaser of natural gas is excused in writing by the secretary in advance of the report filing deadline from filing a report, a purchaser of natural gas shall file with the secretary a report in a form or forms prescribed by the secretary that states: (A) The names, addresses, and severance tax permit numbers of all producers from whom the purchaser has purchased natural gas during each reporting period; (B) The total quantity of natural gas acquired and the purchase price; and (C) Any other information as the secretary may reasonably require for the proper enforcement of this subchapter.

(A) The names, addresses, and severance tax permit numbers of all producers from whom the purchaser has purchased natural gas during each reporting period;

(B) The total quantity of natural gas acquired and the purchase price; and

(C) Any other information as the secretary may reasonably require for the proper enforcement of this subchapter.

(2) The purchaser of natural gas shall file each report required under this subsection on or before the twenty-fifth day of the second month following the reporting period that is covered by the report.

(c) (1) It is the duty of each purchaser of natural resources, excluding natural gas, to ascertain in advance of permitting the natural resources so purchased to be processed or otherwise changed from the natural state thereof at the time of severance or to be transported for the purpose of such processing or other change that the severance tax upon the natural resources has been paid. (2) Each purchaser of natural gas shall determine in advance of filing the report under subsection (b) of this section that each producer from whom the purchaser has purchased natural gas has been issued a severance tax permit number and furnish the secretary the severance tax permit number of each producer under subsection (b) of this section. (3) (A) The purchaser of natural resources, excluding natural gas, is primarily liable for any unpaid severance tax in the event of failure to make such advance ascertainment. (B) Each purchaser of natural gas is primarily liable for any unpaid severance tax that is attributable to a producer from whom the purchaser purchased natural gas if the purchaser fails to furnish the secretary with all of the information required in subsection (b) of this section. (4) However, the purchaser as a condition to permitting the processing or other change of such natural resources, excluding natural gas, as to which the severance tax shall not have been paid by the producer may himself or herself pay such tax either in advance or, with the advance written approval of the secretary for cause shown to the secretary, within twenty (20) days after commencing the processing or other change of the natural resources or the transportation thereof for such purpose.

(1) It is the duty of each purchaser of natural resources, excluding natural gas, to ascertain in advance of permitting the natural resources so purchased to be processed or otherwise changed from the natural state thereof at the time of severance or to be transported for the purpose of such processing or other change that the severance tax upon the natural resources has been paid.

(2) Each purchaser of natural gas shall determine in advance of filing the report under subsection (b) of this section that each producer from whom the purchaser has purchased natural gas has been issued a severance tax permit number and furnish the secretary the severance tax permit number of each producer under subsection (b) of this section.

(3) (A) The purchaser of natural resources, excluding natural gas, is primarily liable for any unpaid severance tax in the event of failure to make such advance ascertainment. (B) Each purchaser of natural gas is primarily liable for any unpaid severance tax that is attributable to a producer from whom the purchaser purchased natural gas if the purchaser fails to furnish the secretary with all of the information required in subsection (b) of this section.

(A) The purchaser of natural resources, excluding natural gas, is primarily liable for any unpaid severance tax in the event of failure to make such advance ascertainment.

(B) Each purchaser of natural gas is primarily liable for any unpaid severance tax that is attributable to a producer from whom the purchaser purchased natural gas if the purchaser fails to furnish the secretary with all of the information required in subsection (b) of this section.

(4) However, the purchaser as a condition to permitting the processing or other change of such natural resources, excluding natural gas, as to which the severance tax shall not have been paid by the producer may himself or herself pay such tax either in advance or, with the advance written approval of the secretary for cause shown to the secretary, within twenty (20) days after commencing the processing or other change of the natural resources or the transportation thereof for such purpose.

(d) (1) Unless the secretary has given advance written approval for the removal under subsection (a) of this section, the removal by the purchaser of natural resources, excluding natural gas, to any point of concentration or assembly, either inside or outside the state, without the severance tax having been previously paid by the producer or the purchaser is a fraudulent concealment of the location of the natural resources with the intent to avoid the payment of the severance tax. (2) Unless the secretary has given advance written approval for the removal, the removal by the producer, purchaser, or primary processor of any timber to any point outside the state without the severance tax having been paid on the timber is unlawful.

(1) Unless the secretary has given advance written approval for the removal under subsection (a) of this section, the removal by the purchaser of natural resources, excluding natural gas, to any point of concentration or assembly, either inside or outside the state, without the severance tax having been previously paid by the producer or the purchaser is a fraudulent concealment of the location of the natural resources with the intent to avoid the payment of the severance tax.

(2) Unless the secretary has given advance written approval for the removal, the removal by the producer, purchaser, or primary processor of any timber to any point outside the state without the severance tax having been paid on the timber is unlawful.

(e) (1) Upon conviction, each removal described in subdivision (d)(1) of this section by the purchaser of natural resources, excluding natural gas, is a violation punishable by a fine of at least fifty dollars ($50.00) and not more than five hundred dollars ($500). (2) Upon conviction, each removal described in subdivision (d)(2) of this section by a producer, purchaser, or primary processor is a violation punishable by a fine of at least fifty dollars ($50.00) and not more than five hundred dollars ($500). (3) Upon conviction, each failure by a producer, purchaser, including a purchaser of natural gas, or primary processor to file a report required by this section is a violation punishable by a fine of at least fifty dollars ($50.00) and not more than five hundred dollars ($500). (4) Upon conviction, a person knowingly making a false material statement in a report required by this section is guilty of perjury under § 5-53-102 .

(1) Upon conviction, each removal described in subdivision (d)(1) of this section by the purchaser of natural resources, excluding natural gas, is a violation punishable by a fine of at least fifty dollars ($50.00) and not more than five hundred dollars ($500).

(2) Upon conviction, each removal described in subdivision (d)(2) of this section by a producer, purchaser, or primary processor is a violation punishable by a fine of at least fifty dollars ($50.00) and not more than five hundred dollars ($500).

(3) Upon conviction, each failure by a producer, purchaser, including a purchaser of natural gas, or primary processor to file a report required by this section is a violation punishable by a fine of at least fifty dollars ($50.00) and not more than five hundred dollars ($500).

(4) Upon conviction, a person knowingly making a false material statement in a report required by this section is guilty of perjury under § 5-53-102 .

Amended by Act 2019, No. 910,§ 4250, eff. 7/1/2019.

Acts 1947, No. 136, § 7; 1955, No. 100, § 1; 1983, No. 254, § 6; A.S.A. 1947, § 84-2107; Acts 2009, No. 145, § 2; 2009, No. 655, § 102; 2011, No. 278, §§ 3, 4.
Ark. Code Ann. § 26-18-211 — AR Code / Title 26 / Chapter 18 / Subchapter 2 / Section 26-18-211
Failure to correct noncompliance after notification
Status: in_force

If a taxpayer has been previously advised that he or she has failed to comply with the provisions of the Arkansas Code or the rules as promulgated by the Secretary of the Department of Finance and Administration by his or her failure to include all of the information required to be shown on the return or the inclusion of incorrect information and he or she continues to disregard those provisions, there shall be assessed a penalty of fifty dollars ($50.00) per return, unless the failure is due to reasonable cause and not due to willful neglect. Amended by Act 2019, No. 315,§ 2937, eff. 7/24/2019. Amended by Act 2019, No. 910,§ 3608, eff. 7/1/2019. Acts 1991, No. 688, § 5.

If a taxpayer has been previously advised that he or she has failed to comply with the provisions of the Arkansas Code or the rules as promulgated by the Secretary of the Department of Finance and Administration by his or her failure to include all of the information required to be shown on the return or the inclusion of incorrect information and he or she continues to disregard those provisions, there shall be assessed a penalty of fifty dollars ($50.00) per return, unless the failure is due to reasonable cause and not due to willful neglect.

Amended by Act 2019, No. 315,§ 2937, eff. 7/24/2019.

Amended by Act 2019, No. 910,§ 3608, eff. 7/1/2019.

Acts 1991, No. 688, § 5.
Ark. Code Ann. § 26-18-306 — AR Code / Title 26 / Chapter 18 / Subchapter 3 / Section 26-18-306
Time limitations for assessments, collection, refunds, and prosecution
Status: in_force

(a) (1) Except as otherwise provided in this chapter, no assessment of any tax levied under the state tax law shall be made after the expiration of three (3) years from the date the return was required to be filed or the date the return was filed, whichever period expires later. (2) The Secretary of the Department of Finance and Administration shall not begin court proceedings after the expiration of the three-year period unless there has been a previous assessment for the collection of the tax. (b) (1) Notwithstanding subsection (a) of this section, if the amount of taxable income or taxable estate for a taxpayer for a year, as returned to the United States Department of the Treasury, is changed and corrected by the Commissioner of Internal Revenue or an officer of the United States of competent authority, the taxpayer, within one hundred eighty (180) days from the receipt of the notice and demand for payment by the Internal Revenue Service, shall report to the Secretary of the Department of Finance and Administration the corrected federal tax, taxable income, or taxable estate for the taxable period covered by the change on an amended Arkansas income tax return. (2) (A) If there is an additional state tax due from the taxpayer because of the correction by the Internal Revenue Service, the additional state tax resulting from the issues that are included in the correction shall be assessed by the Secretary of the Department of Finance and Administration within one (1) year from the filing of the amended Arkansas income tax return by the taxpayer. (B) However, if a taxpayer fails to notify the Secretary of the Department of Finance and Administration of the correction as required by this subsection, no assessment of additional state tax due from the taxpayer because of the correction by the Internal Revenue Service shall be made by the Secretary of the Department of Finance and Administration after the expiration of three (3) years from the date the amended return was required to be filed. (C) If the taxpayer appeals the assessment made by the Internal Revenue Service, the Secretary of the Department of Finance and Administration has three (3) years from the date of the final Internal Revenue Service assessment or date of payment of the federal assessment by the taxpayer, whichever of the two (2) periods expires later, in which to make an assessment. (3) (A) Notwithstanding subsection (i) of this section, if the correction by the Internal Revenue Service results in an overpayment of state income tax for the taxable year for which the correction is made, the taxpayer may receive a refund of the overpaid income tax for that year resulting from the issues that are included in the correction upon the filing of the amended return within one hundred eighty (180) days from receipt of the notice from the Internal Revenue Service. (B) A refund shall not be paid if the amended return is filed on or after the one hundred eighty-first day following receipt of the notice from the Internal Revenue Service unless the amended return is filed within three (3) years from the time the original return was filed or two (2) years from the time the income tax due on the original return was paid, whichever of the periods expires later. (4) A change or correction to taxable income made by the Internal Revenue Service that results in additional state income tax due from the taxpayer does not entitle the Secretary of the Department of Finance and Administration to issue an assessment unless fewer than three (3) years have elapsed from the date the original return for the year not included in the notice was required to be filed or the date the original return was filed, whichever of the periods expires later, for: (A) A tax year that is not included in the notice of change or correction; or (B) An issue that is not included in the notice of change or correction. (5) A change or correction to taxable income made by the Internal Revenue Service that results in a refund to the taxpayer does not entitle the taxpayer to receive a refund unless fewer than three (3) years have elapsed from the date the original return for the tax year not included in the notice was filed or fewer than two (2) years have elapsed from the time that income tax due on the original return was paid, whichever of the periods expires later, for: (A) A tax year that is not included within the notice of change or correction; or (B) An issue that is not included in the notice of change or correction. (c) Upon written agreement of the Secretary of the Department of Finance and Administration and the taxpayer, the time within which the Secretary of the Department of Finance and Administration may make a final assessment, as provided by § 26-18-401 , may be extended to a date mutually agreed upon in the written agreement. (d) (1) When, before the expiration of the time prescribed for the assessment of the tax or of extensions of the time prescribed for the assessment of the tax consented to in writing, both the Secretary of the Department of Finance and Administration and the taxpayer have consented in writing to an assessment after that time, then the tax may be assessed at any time prior to the expiration of the time agreed upon. (2) When the time to file a claim for a refund has not expired at the time the extension agreement is entered into, the agreement shall automatically extend the period in which a refund may be allowed or a claim for a refund may be filed to the final date agreed to in the agreement, plus sixty (60) days. (e) If a taxpayer understates a state tax due by an amount equal to or greater than twenty-five percent (25%) in any return or report or in the case of an income tax, if the taxpayer underreports net taxable income by twenty-five percent (25%) or more, the Secretary of the Department of Finance and Administration may assess the tax due or begin an action in court for the collection of the tax due at any time prior to the expiration of six (6) years after the return was required to be filed or the date the return was filed, whichever period expires later. (f) In the case of a fraudulent return or failure to file a report or return required under any state tax law, the Secretary of the Department of Finance and Administration may compute, determine, and assess the estimated amount of tax due from any information in his or her possession or may begin an action in court for the collection of the tax without assessment, at any time. (g) Whenever a taxpayer requests an extension of time for filing any return required by any state tax law, the limitation of time for assessing any tax shall be extended for a like period. (h) (1) Except as otherwise provided in this chapter, when the assessment of any tax imposed by any state law has been made within the period of limitation properly applicable to the assessment, the tax may be collected by levy or proceeding in court, but only if the levy is made or the proceeding is begun within ten (10) years after the date of the assessment of the tax. (2) A bankruptcy filing by a taxpayer tolls the ten-year collection period stated in subdivision (h)(1) of this section until one hundred eighty (180) days after the termination of the taxpayer's bankruptcy case. (i) (1) (A) An amended return shall be filed by the taxpayer within three (3) years from the time the return was filed or two (2) years from the time the tax was paid, whichever of the periods expires later. (B) The limitations periods stated in subdivision (i)(1)(A) of this section apply regardless of whether the amended return would reduce a taxpayer's tax liability, entitle the taxpayer to a refund of an overpayment of a state tax, amend the taxpayer's filing status, or amend the taxpayer's return for any other purpose. (C) Subdivision (i)(1)(A) of this section does not apply: (i) To a tax paid as a result of an audit or proposed assessment; or (ii) (a) If the amount of taxable income or taxable estate for a taxpayer for a year, as returned to the United States Department of the Treasury, is changed and corrected by the Commissioner of Internal Revenue or an officer of the United States Government of competent authority. (b) Subsection (b) of this section applies in circumstances described in subdivision (i)(1)(C)(ii) (a) of this section. (D) (i) If a taxpayer is subject to an audit, then the taxpayer may file an amended return or verified claim for credit or refund of an overpayment of a state tax that occurred at any time during the time period for which the audit is performed. (ii) However, the total refund of overpayments for the extended audit period shall not be more than the total amount assessed for the extended audit period. (2) Any taxpayer who fails to file a return, underreports his or her income by twenty-five percent (25%) or more, or fails to notify the Secretary of the Department of Finance and Administration of any change or correction by the Internal Revenue Service in the taxpayer's taxable income shall not be entitled to file an amended return or verified claim for credit or refund after the expiration of three (3) years from the date the original return or notification of change was originally due. (j) No person shall be prosecuted, tried, or punished for any of the various criminal offenses arising under the provisions of any state tax law unless the indictment of the person is instituted within six (6) years after the commission of the offense. (k) (1) In the case of an individual, the running of the periods specified for filing an amended return or verified claim for credit or refund shall be suspended during any period of the individual's life in which the individual is financially disabled. (2) (A) An individual is financially disabled if the individual is unable to manage his or her financial affairs by reason of a medically determinable physical or mental impairment of the individual which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months. (B) An individual shall not be considered to have a physical or mental impairment unless proof of the existence of the impairment is furnished in a form and in a manner as the Secretary of the Department of Finance and Administration may require. (3) An individual shall not be treated as financially disabled during any period that the individual's spouse or any other person is authorized to act on behalf of the individual in financial matters. (l) (1) The limitation periods in subsection (i) of this section to file a claim for credit or refund of an overpayment of state tax do not apply to a taxpayer who is a veteran if the: (A) Overpayment of state tax claimed resulted from the: (i) Reduction of uniformed service retired pay computed under 10 U.S.C. § 1406 or 10 U.S.C. § 1407 , as in effect on January 1, 2009; or (ii) Waiver of retired pay under 38 U.S.C. § 5305 , as in effect on January 1, 2009; and (B) Reduction of the uniformed service retired pay or waiver of retired pay provided in subdivision (l)(1)(A) of this section is the result of an award of compensation under a determination by the United States Secretary of Veterans Affairs that part or all of the payments to the taxpayer are payments made for a service-connected disability that are not included in gross income under 26 U.S.C. § 104 , as in effect on January 1, 2009. (2) An amended return or verified claim for credit or refund of an overpayment of state tax described in subdivision (l)(1) of this section shall be filed by the taxpayer within one (1) year of the date of the determination described in subdivision (l)(1)(B) of this section or February 25, 2009, whichever occurs later. (3) A credit or refund for an overpayment of state tax shall not be allowed under this subsection for any tax year which began before January 1, 2001. (m) (1) Except in the case of deficiencies that are determined to be due to fraud, if the Secretary of the Department of Finance and Administration assesses a tax or begins an action in court for the collection of a tax under subsection (e) or subsection (f) of this section for a time period in excess of the time periods provided in subsection (a) of this section, the taxpayer may file a verified claim for a credit or refund of an overpayment of state tax for the additional time period open for assessment by the Secretary of the Department of Finance and Administration at any time before the time of collection of the assessment. (2) However, the taxpayer shall not receive a credit or refund of any amount in excess of the assessment under this subsection. (3) The taxpayer's ability to file a verified claim under this subsection is in addition to and not in limitation of the other provisions for filing claims in this section. (n) (1) Except as provided in subdivision (n)(2) of this section, an assessment to recover an erroneously paid refund shall not be made after the expiration of three (3) years from the date of the refund warrant. (2) However, an assessment may be made at any time to recover an erroneously paid refund that was paid as a result of fraud or misrepresentation by the taxpayer. Amended by Act 2019, No. 760,§ 1, eff. for tax years beginning on or after 1/1/2020. Amended by Act 2019, No. 863,§ 1, eff. for tax years beginning on or after 1/1/2019. Amended by Act 2017, No. 999,§ 4, eff. 8/1/2017. Amended by Act 2015, No. 896,§ 2, eff. 10/1/2015. Amended by Act 2015, No. 896,§ 1, eff. 10/1/2015. Amended by Act 2015, No. 1254,§ 1, eff. 7/22/2015. Acts 1979, No. 401, § 15; 1981, No. 914, § 4; A.S.A. 1947, § 84-4715; Acts 1989, No. 826, § 15; 1991, No. 685, § 6; 1993, No. 785, § 1; 1997, No. 951, § 27; 1999, No. 1126, § 1; 1999, No. 1277, § 10; 2003, No. 1718, § 2; 2007, No. 218, § 9; 2009, No. 238, § 1; 2009, No. 373, § 1; 2011, No. 983, § 2.

(a) (1) Except as otherwise provided in this chapter, no assessment of any tax levied under the state tax law shall be made after the expiration of three (3) years from the date the return was required to be filed or the date the return was filed, whichever period expires later. (2) The Secretary of the Department of Finance and Administration shall not begin court proceedings after the expiration of the three-year period unless there has been a previous assessment for the collection of the tax.

(1) Except as otherwise provided in this chapter, no assessment of any tax levied under the state tax law shall be made after the expiration of three (3) years from the date the return was required to be filed or the date the return was filed, whichever period expires later.

(2) The Secretary of the Department of Finance and Administration shall not begin court proceedings after the expiration of the three-year period unless there has been a previous assessment for the collection of the tax.

(b) (1) Notwithstanding subsection (a) of this section, if the amount of taxable income or taxable estate for a taxpayer for a year, as returned to the United States Department of the Treasury, is changed and corrected by the Commissioner of Internal Revenue or an officer of the United States of competent authority, the taxpayer, within one hundred eighty (180) days from the receipt of the notice and demand for payment by the Internal Revenue Service, shall report to the Secretary of the Department of Finance and Administration the corrected federal tax, taxable income, or taxable estate for the taxable period covered by the change on an amended Arkansas income tax return. (2) (A) If there is an additional state tax due from the taxpayer because of the correction by the Internal Revenue Service, the additional state tax resulting from the issues that are included in the correction shall be assessed by the Secretary of the Department of Finance and Administration within one (1) year from the filing of the amended Arkansas income tax return by the taxpayer. (B) However, if a taxpayer fails to notify the Secretary of the Department of Finance and Administration of the correction as required by this subsection, no assessment of additional state tax due from the taxpayer because of the correction by the Internal Revenue Service shall be made by the Secretary of the Department of Finance and Administration after the expiration of three (3) years from the date the amended return was required to be filed. (C) If the taxpayer appeals the assessment made by the Internal Revenue Service, the Secretary of the Department of Finance and Administration has three (3) years from the date of the final Internal Revenue Service assessment or date of payment of the federal assessment by the taxpayer, whichever of the two (2) periods expires later, in which to make an assessment. (3) (A) Notwithstanding subsection (i) of this section, if the correction by the Internal Revenue Service results in an overpayment of state income tax for the taxable year for which the correction is made, the taxpayer may receive a refund of the overpaid income tax for that year resulting from the issues that are included in the correction upon the filing of the amended return within one hundred eighty (180) days from receipt of the notice from the Internal Revenue Service. (B) A refund shall not be paid if the amended return is filed on or after the one hundred eighty-first day following receipt of the notice from the Internal Revenue Service unless the amended return is filed within three (3) years from the time the original return was filed or two (2) years from the time the income tax due on the original return was paid, whichever of the periods expires later. (4) A change or correction to taxable income made by the Internal Revenue Service that results in additional state income tax due from the taxpayer does not entitle the Secretary of the Department of Finance and Administration to issue an assessment unless fewer than three (3) years have elapsed from the date the original return for the year not included in the notice was required to be filed or the date the original return was filed, whichever of the periods expires later, for: (A) A tax year that is not included in the notice of change or correction; or (B) An issue that is not included in the notice of change or correction. (5) A change or correction to taxable income made by the Internal Revenue Service that results in a refund to the taxpayer does not entitle the taxpayer to receive a refund unless fewer than three (3) years have elapsed from the date the original return for the tax year not included in the notice was filed or fewer than two (2) years have elapsed from the time that income tax due on the original return was paid, whichever of the periods expires later, for: (A) A tax year that is not included within the notice of change or correction; or (B) An issue that is not included in the notice of change or correction.

(1) Notwithstanding subsection (a) of this section, if the amount of taxable income or taxable estate for a taxpayer for a year, as returned to the United States Department of the Treasury, is changed and corrected by the Commissioner of Internal Revenue or an officer of the United States of competent authority, the taxpayer, within one hundred eighty (180) days from the receipt of the notice and demand for payment by the Internal Revenue Service, shall report to the Secretary of the Department of Finance and Administration the corrected federal tax, taxable income, or taxable estate for the taxable period covered by the change on an amended Arkansas income tax return.

(2) (A) If there is an additional state tax due from the taxpayer because of the correction by the Internal Revenue Service, the additional state tax resulting from the issues that are included in the correction shall be assessed by the Secretary of the Department of Finance and Administration within one (1) year from the filing of the amended Arkansas income tax return by the taxpayer. (B) However, if a taxpayer fails to notify the Secretary of the Department of Finance and Administration of the correction as required by this subsection, no assessment of additional state tax due from the taxpayer because of the correction by the Internal Revenue Service shall be made by the Secretary of the Department of Finance and Administration after the expiration of three (3) years from the date the amended return was required to be filed. (C) If the taxpayer appeals the assessment made by the Internal Revenue Service, the Secretary of the Department of Finance and Administration has three (3) years from the date of the final Internal Revenue Service assessment or date of payment of the federal assessment by the taxpayer, whichever of the two (2) periods expires later, in which to make an assessment.

(A) If there is an additional state tax due from the taxpayer because of the correction by the Internal Revenue Service, the additional state tax resulting from the issues that are included in the correction shall be assessed by the Secretary of the Department of Finance and Administration within one (1) year from the filing of the amended Arkansas income tax return by the taxpayer.

(B) However, if a taxpayer fails to notify the Secretary of the Department of Finance and Administration of the correction as required by this subsection, no assessment of additional state tax due from the taxpayer because of the correction by the Internal Revenue Service shall be made by the Secretary of the Department of Finance and Administration after the expiration of three (3) years from the date the amended return was required to be filed.

(C) If the taxpayer appeals the assessment made by the Internal Revenue Service, the Secretary of the Department of Finance and Administration has three (3) years from the date of the final Internal Revenue Service assessment or date of payment of the federal assessment by the taxpayer, whichever of the two (2) periods expires later, in which to make an assessment.

(3) (A) Notwithstanding subsection (i) of this section, if the correction by the Internal Revenue Service results in an overpayment of state income tax for the taxable year for which the correction is made, the taxpayer may receive a refund of the overpaid income tax for that year resulting from the issues that are included in the correction upon the filing of the amended return within one hundred eighty (180) days from receipt of the notice from the Internal Revenue Service. (B) A refund shall not be paid if the amended return is filed on or after the one hundred eighty-first day following receipt of the notice from the Internal Revenue Service unless the amended return is filed within three (3) years from the time the original return was filed or two (2) years from the time the income tax due on the original return was paid, whichever of the periods expires later.

(A) Notwithstanding subsection (i) of this section, if the correction by the Internal Revenue Service results in an overpayment of state income tax for the taxable year for which the correction is made, the taxpayer may receive a refund of the overpaid income tax for that year resulting from the issues that are included in the correction upon the filing of the amended return within one hundred eighty (180) days from receipt of the notice from the Internal Revenue Service.

(B) A refund shall not be paid if the amended return is filed on or after the one hundred eighty-first day following receipt of the notice from the Internal Revenue Service unless the amended return is filed within three (3) years from the time the original return was filed or two (2) years from the time the income tax due on the original return was paid, whichever of the periods expires later.

(4) A change or correction to taxable income made by the Internal Revenue Service that results in additional state income tax due from the taxpayer does not entitle the Secretary of the Department of Finance and Administration to issue an assessment unless fewer than three (3) years have elapsed from the date the original return for the year not included in the notice was required to be filed or the date the original return was filed, whichever of the periods expires later, for: (A) A tax year that is not included in the notice of change or correction; or (B) An issue that is not included in the notice of change or correction.

(A) A tax year that is not included in the notice of change or correction; or

(B) An issue that is not included in the notice of change or correction.

(5) A change or correction to taxable income made by the Internal Revenue Service that results in a refund to the taxpayer does not entitle the taxpayer to receive a refund unless fewer than three (3) years have elapsed from the date the original return for the tax year not included in the notice was filed or fewer than two (2) years have elapsed from the time that income tax due on the original return was paid, whichever of the periods expires later, for: (A) A tax year that is not included within the notice of change or correction; or (B) An issue that is not included in the notice of change or correction.

(A) A tax year that is not included within the notice of change or correction; or

(B) An issue that is not included in the notice of change or correction.

(c) Upon written agreement of the Secretary of the Department of Finance and Administration and the taxpayer, the time within which the Secretary of the Department of Finance and Administration may make a final assessment, as provided by § 26-18-401 , may be extended to a date mutually agreed upon in the written agreement.

(d) (1) When, before the expiration of the time prescribed for the assessment of the tax or of extensions of the time prescribed for the assessment of the tax consented to in writing, both the Secretary of the Department of Finance and Administration and the taxpayer have consented in writing to an assessment after that time, then the tax may be assessed at any time prior to the expiration of the time agreed upon. (2) When the time to file a claim for a refund has not expired at the time the extension agreement is entered into, the agreement shall automatically extend the period in which a refund may be allowed or a claim for a refund may be filed to the final date agreed to in the agreement, plus sixty (60) days.

(1) When, before the expiration of the time prescribed for the assessment of the tax or of extensions of the time prescribed for the assessment of the tax consented to in writing, both the Secretary of the Department of Finance and Administration and the taxpayer have consented in writing to an assessment after that time, then the tax may be assessed at any time prior to the expiration of the time agreed upon.

(2) When the time to file a claim for a refund has not expired at the time the extension agreement is entered into, the agreement shall automatically extend the period in which a refund may be allowed or a claim for a refund may be filed to the final date agreed to in the agreement, plus sixty (60) days.

(e) If a taxpayer understates a state tax due by an amount equal to or greater than twenty-five percent (25%) in any return or report or in the case of an income tax, if the taxpayer underreports net taxable income by twenty-five percent (25%) or more, the Secretary of the Department of Finance and Administration may assess the tax due or begin an action in court for the collection of the tax due at any time prior to the expiration of six (6) years after the return was required to be filed or the date the return was filed, whichever period expires later.

(f) In the case of a fraudulent return or failure to file a report or return required under any state tax law, the Secretary of the Department of Finance and Administration may compute, determine, and assess the estimated amount of tax due from any information in his or her possession or may begin an action in court for the collection of the tax without assessment, at any time.

(g) Whenever a taxpayer requests an extension of time for filing any return required by any state tax law, the limitation of time for assessing any tax shall be extended for a like period.

(h) (1) Except as otherwise provided in this chapter, when the assessment of any tax imposed by any state law has been made within the period of limitation properly applicable to the assessment, the tax may be collected by levy or proceeding in court, but only if the levy is made or the proceeding is begun within ten (10) years after the date of the assessment of the tax. (2) A bankruptcy filing by a taxpayer tolls the ten-year collection period stated in subdivision (h)(1) of this section until one hundred eighty (180) days after the termination of the taxpayer's bankruptcy case.

(1) Except as otherwise provided in this chapter, when the assessment of any tax imposed by any state law has been made within the period of limitation properly applicable to the assessment, the tax may be collected by levy or proceeding in court, but only if the levy is made or the proceeding is begun within ten (10) years after the date of the assessment of the tax.

(2) A bankruptcy filing by a taxpayer tolls the ten-year collection period stated in subdivision (h)(1) of this section until one hundred eighty (180) days after the termination of the taxpayer's bankruptcy case.

(i) (1) (A) An amended return shall be filed by the taxpayer within three (3) years from the time the return was filed or two (2) years from the time the tax was paid, whichever of the periods expires later. (B) The limitations periods stated in subdivision (i)(1)(A) of this section apply regardless of whether the amended return would reduce a taxpayer's tax liability, entitle the taxpayer to a refund of an overpayment of a state tax, amend the taxpayer's filing status, or amend the taxpayer's return for any other purpose. (C) Subdivision (i)(1)(A) of this section does not apply: (i) To a tax paid as a result of an audit or proposed assessment; or (ii) (a) If the amount of taxable income or taxable estate for a taxpayer for a year, as returned to the United States Department of the Treasury, is changed and corrected by the Commissioner of Internal Revenue or an officer of the United States Government of competent authority. (b) Subsection (b) of this section applies in circumstances described in subdivision (i)(1)(C)(ii) (a) of this section. (D) (i) If a taxpayer is subject to an audit, then the taxpayer may file an amended return or verified claim for credit or refund of an overpayment of a state tax that occurred at any time during the time period for which the audit is performed. (ii) However, the total refund of overpayments for the extended audit period shall not be more than the total amount assessed for the extended audit period. (2) Any taxpayer who fails to file a return, underreports his or her income by twenty-five percent (25%) or more, or fails to notify the Secretary of the Department of Finance and Administration of any change or correction by the Internal Revenue Service in the taxpayer's taxable income shall not be entitled to file an amended return or verified claim for credit or refund after the expiration of three (3) years from the date the original return or notification of change was originally due.

(1) (A) An amended return shall be filed by the taxpayer within three (3) years from the time the return was filed or two (2) years from the time the tax was paid, whichever of the periods expires later. (B) The limitations periods stated in subdivision (i)(1)(A) of this section apply regardless of whether the amended return would reduce a taxpayer's tax liability, entitle the taxpayer to a refund of an overpayment of a state tax, amend the taxpayer's filing status, or amend the taxpayer's return for any other purpose. (C) Subdivision (i)(1)(A) of this section does not apply: (i) To a tax paid as a result of an audit or proposed assessment; or (ii) (a) If the amount of taxable income or taxable estate for a taxpayer for a year, as returned to the United States Department of the Treasury, is changed and corrected by the Commissioner of Internal Revenue or an officer of the United States Government of competent authority. (b) Subsection (b) of this section applies in circumstances described in subdivision (i)(1)(C)(ii) (a) of this section. (D) (i) If a taxpayer is subject to an audit, then the taxpayer may file an amended return or verified claim for credit or refund of an overpayment of a state tax that occurred at any time during the time period for which the audit is performed. (ii) However, the total refund of overpayments for the extended audit period shall not be more than the total amount assessed for the extended audit period.

(A) An amended return shall be filed by the taxpayer within three (3) years from the time the return was filed or two (2) years from the time the tax was paid, whichever of the periods expires later.

(B) The limitations periods stated in subdivision (i)(1)(A) of this section apply regardless of whether the amended return would reduce a taxpayer's tax liability, entitle the taxpayer to a refund of an overpayment of a state tax, amend the taxpayer's filing status, or amend the taxpayer's return for any other purpose.

(C) Subdivision (i)(1)(A) of this section does not apply: (i) To a tax paid as a result of an audit or proposed assessment; or (ii) (a) If the amount of taxable income or taxable estate for a taxpayer for a year, as returned to the United States Department of the Treasury, is changed and corrected by the Commissioner of Internal Revenue or an officer of the United States Government of competent authority. (b) Subsection (b) of this section applies in circumstances described in subdivision (i)(1)(C)(ii) (a) of this section.

(i) To a tax paid as a result of an audit or proposed assessment; or

(ii) (a) If the amount of taxable income or taxable estate for a taxpayer for a year, as returned to the United States Department of the Treasury, is changed and corrected by the Commissioner of Internal Revenue or an officer of the United States Government of competent authority. (b) Subsection (b) of this section applies in circumstances described in subdivision (i)(1)(C)(ii) (a) of this section.

(a) If the amount of taxable income or taxable estate for a taxpayer for a year, as returned to the United States Department of the Treasury, is changed and corrected by the Commissioner of Internal Revenue or an officer of the United States Government of competent authority.

(b) Subsection (b) of this section applies in circumstances described in subdivision (i)(1)(C)(ii) (a) of this section.

(D) (i) If a taxpayer is subject to an audit, then the taxpayer may file an amended return or verified claim for credit or refund of an overpayment of a state tax that occurred at any time during the time period for which the audit is performed. (ii) However, the total refund of overpayments for the extended audit period shall not be more than the total amount assessed for the extended audit period.

(i) If a taxpayer is subject to an audit, then the taxpayer may file an amended return or verified claim for credit or refund of an overpayment of a state tax that occurred at any time during the time period for which the audit is performed.

(ii) However, the total refund of overpayments for the extended audit period shall not be more than the total amount assessed for the extended audit period.

(2) Any taxpayer who fails to file a return, underreports his or her income by twenty-five percent (25%) or more, or fails to notify the Secretary of the Department of Finance and Administration of any change or correction by the Internal Revenue Service in the taxpayer's taxable income shall not be entitled to file an amended return or verified claim for credit or refund after the expiration of three (3) years from the date the original return or notification of change was originally due.

(j) No person shall be prosecuted, tried, or punished for any of the various criminal offenses arising under the provisions of any state tax law unless the indictment of the person is instituted within six (6) years after the commission of the offense.

(k) (1) In the case of an individual, the running of the periods specified for filing an amended return or verified claim for credit or refund shall be suspended during any period of the individual's life in which the individual is financially disabled. (2) (A) An individual is financially disabled if the individual is unable to manage his or her financial affairs by reason of a medically determinable physical or mental impairment of the individual which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months. (B) An individual shall not be considered to have a physical or mental impairment unless proof of the existence of the impairment is furnished in a form and in a manner as the Secretary of the Department of Finance and Administration may require. (3) An individual shall not be treated as financially disabled during any period that the individual's spouse or any other person is authorized to act on behalf of the individual in financial matters.

(1) In the case of an individual, the running of the periods specified for filing an amended return or verified claim for credit or refund shall be suspended during any period of the individual's life in which the individual is financially disabled.

(2) (A) An individual is financially disabled if the individual is unable to manage his or her financial affairs by reason of a medically determinable physical or mental impairment of the individual which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months. (B) An individual shall not be considered to have a physical or mental impairment unless proof of the existence of the impairment is furnished in a form and in a manner as the Secretary of the Department of Finance and Administration may require.

(A) An individual is financially disabled if the individual is unable to manage his or her financial affairs by reason of a medically determinable physical or mental impairment of the individual which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months.

(B) An individual shall not be considered to have a physical or mental impairment unless proof of the existence of the impairment is furnished in a form and in a manner as the Secretary of the Department of Finance and Administration may require.

(3) An individual shall not be treated as financially disabled during any period that the individual's spouse or any other person is authorized to act on behalf of the individual in financial matters.

(l) (1) The limitation periods in subsection (i) of this section to file a claim for credit or refund of an overpayment of state tax do not apply to a taxpayer who is a veteran if the: (A) Overpayment of state tax claimed resulted from the: (i) Reduction of uniformed service retired pay computed under 10 U.S.C. § 1406 or 10 U.S.C. § 1407 , as in effect on January 1, 2009; or (ii) Waiver of retired pay under 38 U.S.C. § 5305 , as in effect on January 1, 2009; and (B) Reduction of the uniformed service retired pay or waiver of retired pay provided in subdivision (l)(1)(A) of this section is the result of an award of compensation under a determination by the United States Secretary of Veterans Affairs that part or all of the payments to the taxpayer are payments made for a service-connected disability that are not included in gross income under 26 U.S.C. § 104 , as in effect on January 1, 2009. (2) An amended return or verified claim for credit or refund of an overpayment of state tax described in subdivision (l)(1) of this section shall be filed by the taxpayer within one (1) year of the date of the determination described in subdivision (l)(1)(B) of this section or February 25, 2009, whichever occurs later. (3) A credit or refund for an overpayment of state tax shall not be allowed under this subsection for any tax year which began before January 1, 2001.

(1) The limitation periods in subsection (i) of this section to file a claim for credit or refund of an overpayment of state tax do not apply to a taxpayer who is a veteran if the: (A) Overpayment of state tax claimed resulted from the: (i) Reduction of uniformed service retired pay computed under 10 U.S.C. § 1406 or 10 U.S.C. § 1407 , as in effect on January 1, 2009; or (ii) Waiver of retired pay under 38 U.S.C. § 5305 , as in effect on January 1, 2009; and (B) Reduction of the uniformed service retired pay or waiver of retired pay provided in subdivision (l)(1)(A) of this section is the result of an award of compensation under a determination by the United States Secretary of Veterans Affairs that part or all of the payments to the taxpayer are payments made for a service-connected disability that are not included in gross income under 26 U.S.C. § 104 , as in effect on January 1, 2009.

(A) Overpayment of state tax claimed resulted from the: (i) Reduction of uniformed service retired pay computed under 10 U.S.C. § 1406 or 10 U.S.C. § 1407 , as in effect on January 1, 2009; or (ii) Waiver of retired pay under 38 U.S.C. § 5305 , as in effect on January 1, 2009; and

(i) Reduction of uniformed service retired pay computed under 10 U.S.C. § 1406 or 10 U.S.C. § 1407 , as in effect on January 1, 2009; or

(ii) Waiver of retired pay under 38 U.S.C. § 5305 , as in effect on January 1, 2009; and

(B) Reduction of the uniformed service retired pay or waiver of retired pay provided in subdivision (l)(1)(A) of this section is the result of an award of compensation under a determination by the United States Secretary of Veterans Affairs that part or all of the payments to the taxpayer are payments made for a service-connected disability that are not included in gross income under 26 U.S.C. § 104 , as in effect on January 1, 2009.

(2) An amended return or verified claim for credit or refund of an overpayment of state tax described in subdivision (l)(1) of this section shall be filed by the taxpayer within one (1) year of the date of the determination described in subdivision (l)(1)(B) of this section or February 25, 2009, whichever occurs later.

(3) A credit or refund for an overpayment of state tax shall not be allowed under this subsection for any tax year which began before January 1, 2001.

(m) (1) Except in the case of deficiencies that are determined to be due to fraud, if the Secretary of the Department of Finance and Administration assesses a tax or begins an action in court for the collection of a tax under subsection (e) or subsection (f) of this section for a time period in excess of the time periods provided in subsection (a) of this section, the taxpayer may file a verified claim for a credit or refund of an overpayment of state tax for the additional time period open for assessment by the Secretary of the Department of Finance and Administration at any time before the time of collection of the assessment. (2) However, the taxpayer shall not receive a credit or refund of any amount in excess of the assessment under this subsection. (3) The taxpayer's ability to file a verified claim under this subsection is in addition to and not in limitation of the other provisions for filing claims in this section.

(1) Except in the case of deficiencies that are determined to be due to fraud, if the Secretary of the Department of Finance and Administration assesses a tax or begins an action in court for the collection of a tax under subsection (e) or subsection (f) of this section for a time period in excess of the time periods provided in subsection (a) of this section, the taxpayer may file a verified claim for a credit or refund of an overpayment of state tax for the additional time period open for assessment by the Secretary of the Department of Finance and Administration at any time before the time of collection of the assessment.

(2) However, the taxpayer shall not receive a credit or refund of any amount in excess of the assessment under this subsection.

(3) The taxpayer's ability to file a verified claim under this subsection is in addition to and not in limitation of the other provisions for filing claims in this section.

(n) (1) Except as provided in subdivision (n)(2) of this section, an assessment to recover an erroneously paid refund shall not be made after the expiration of three (3) years from the date of the refund warrant. (2) However, an assessment may be made at any time to recover an erroneously paid refund that was paid as a result of fraud or misrepresentation by the taxpayer.

(1) Except as provided in subdivision (n)(2) of this section, an assessment to recover an erroneously paid refund shall not be made after the expiration of three (3) years from the date of the refund warrant.

(2) However, an assessment may be made at any time to recover an erroneously paid refund that was paid as a result of fraud or misrepresentation by the taxpayer.

Amended by Act 2019, No. 760,§ 1, eff. for tax years beginning on or after 1/1/2020.

Amended by Act 2019, No. 863,§ 1, eff. for tax years beginning on or after 1/1/2019.

Amended by Act 2017, No. 999,§ 4, eff. 8/1/2017.

Amended by Act 2015, No. 896,§ 2, eff. 10/1/2015.

Amended by Act 2015, No. 896,§ 1, eff. 10/1/2015.

Amended by Act 2015, No. 1254,§ 1, eff. 7/22/2015.

Acts 1979, No. 401, § 15; 1981, No. 914, § 4; A.S.A. 1947, § 84-4715; Acts 1989, No. 826, § 15; 1991, No. 685, § 6; 1993, No. 785, § 1; 1997, No. 951, § 27; 1999, No. 1126, § 1; 1999, No. 1277, § 10; 2003, No. 1718, § 2; 2007, No. 218, § 9; 2009, No. 238, § 1; 2009, No. 373, § 1; 2011, No. 983, § 2.
Ark. Code Ann. § 26-53-123 — AR Code / Title 26 / Chapter 53 / Subchapter 1 / Section 26-53-123
Liability for tax
Status: in_force

(a) Every person storing, using, distributing, or consuming in this state tangible personal property, specified digital products, a digital code, or taxable services purchased from a vendor shall be liable for the tax imposed by this subchapter, and the liability shall not be extinguished until the tax has been paid to this state. (b) However, a receipt from a vendor authorized by the Secretary of the Department of Finance and Administration under such rules as he or she may prescribe to collect the tax imposed given to the purchaser in accordance with the provisions of §§ 26-53-121 and 26-53-122 shall be sufficient to relieve the purchaser from further liability for the tax to which the receipt may refer. Amended by Act 2019, No. 315,§ 3001, eff. 7/24/2019. Amended by Act 2019, No. 910,§ 3903, eff. 7/1/2019. Amended by Act 2017, No. 141,§ 52, eff. for tax years beginning on and after 1/1/2018. Acts 1949, No. 487, § 5; 1957, No. 19, § 2; 1959, No. 260, § 2; A.S.A. 1947, § 84-3105; Acts 2003, No. 1273, § 25.

(a) Every person storing, using, distributing, or consuming in this state tangible personal property, specified digital products, a digital code, or taxable services purchased from a vendor shall be liable for the tax imposed by this subchapter, and the liability shall not be extinguished until the tax has been paid to this state.

(b) However, a receipt from a vendor authorized by the Secretary of the Department of Finance and Administration under such rules as he or she may prescribe to collect the tax imposed given to the purchaser in accordance with the provisions of §§ 26-53-121 and 26-53-122 shall be sufficient to relieve the purchaser from further liability for the tax to which the receipt may refer.

Amended by Act 2019, No. 315,§ 3001, eff. 7/24/2019.

Amended by Act 2019, No. 910,§ 3903, eff. 7/1/2019.

Amended by Act 2017, No. 141,§ 52, eff. for tax years beginning on and after 1/1/2018.

Acts 1949, No. 487, § 5; 1957, No. 19, § 2; 1959, No. 260, § 2; A.S.A. 1947, § 84-3105; Acts 2003, No. 1273, § 25.