Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 5 - STATE TAXES (§§ 26-50-101 — 26-65-108) › Chapter 51 - INCOME TAXES (§§ 26-51-101 — 26-51-2804) › Subchapter 3 - EXEMPTIONS AND REDUCED TAX RATES (§§ 26-51-301 — 26-51-316) › Section 26-51-306 - Compensation and benefits from military service - Definitions

(a)
(1)
(A)
For tax years beginning before January 1, 2007, no member of the armed services of the United States shall be liable for or required to pay any income tax on the first six thousand dollars ($6,000) of service pay or allowances.
(B)
(i)
For tax years 2005 and 2006, enlisted personnel of the armed services of the State of Arkansas or of the United States shall not be liable for or required to pay any income tax on the first nine thousand dollars ($9,000) of service pay or allowances.
(ii)
For tax years 2005 and 2006, an officer or a warrant officer of the armed services of the State of Arkansas or of the United States is only entitled to the exemption in subdivision (a)(1)(A) of this section and is not entitled to the exemption in subdivision (a)(1)(B)(i) of this section.
(C)
For tax years beginning on and after January 1, 2007, any member of the armed services of the State of Arkansas or the United States is not liable for or required to pay any income tax on the first nine thousand dollars ($9,000) of service pay or allowance.
(D)
The service pay or allowance received by an active duty member of the armed forces is exempt from the income tax imposed under this chapter.
(2)
The compensation and benefits are declared exempt, to the extent of the amounts provided in subdivision (a)(1) of this section, from the state income tax.
(3)
All service pay or allowances of members of the armed services of the State of Arkansas or the United States in excess of the amounts provided in subdivision (a)(1) of this section shall be subject to the state income tax, unless otherwise provided for in this section.
(4)
(A)
Title
26 U.S.C. §§ 112
and
692
, as in effect on January 1, 2007, regarding combat zone compensation of members of the armed forces and income taxes of members of the armed forces on death are adopted.
(B)
The provisions contained in
26 U.S.C. § 112
are in addition to all other provisions contained in this section.
(b)
Nothing in this section shall exempt from taxation the income of members of the armed services derived from other sources than their service pay and allowances.
(c)
As used in this section:
(1)
"Active duty member of the armed forces" means a member in the armed forces of the United States, including without limitation full-time training duty, annual training duty, and attendance while in the active military service at a school designated as a service school by law or by the secretary of the relevant military department;
(2)
(A)
"Armed forces" means the United States Army, United States Navy, United States Air Force, United States Marine Corps, and United States Coast Guard, the National Guard, and the reserve components of the United States Army, United States Navy, United States Air Force, United States Marine Corps, and United States Coast Guard.
(B)
"Armed forces" does not include:
(i)
A military technician (dual status) under
10 U.S.C. § 10216(a)(1)
, as it existed on January 1, 2019;
(ii)
The National Oceanic and Atmospheric Administration Commissioned Officer Corps; or
(iii)
The United States Commissioned Corps of the Public Health Service; and
(3)
"Armed services" means the National Guard, reserve components of the armed forces, United States Army, United States Navy, United States Marine Corps, United States Coast Guard, United States Air Force, National Oceanic and Atmospheric Administration Commissioned Officer Corps, and United States Commissioned Corps of the Public Health Service.
Amended by Act 2019, No. 669,§ 2, eff. for tax years beginning on or after 1/1/2020.
Amended by Act 2019, No. 669,§ 1, eff. for tax years beginning on or after 1/1/2020.
Amended by Act 2013, No. 1408,§ 1, eff. for tax years beginning on or after January 1, 2014.
Acts 1943, No. 61, §§ 1-3; 1971, No. 226, § 1; 1973, No. 587, § 1; A.S.A. 1947, §§ 84-2009 -- 84-2011; Acts 1989 (3rd Ex. Sess.), No. 27, § 2; 1991, No. 386, § 1; 1997, No. 951, § 19; 2005, No. 29, § 1; 2005, No. 2187, § 2; 2007, No. 160, § 1; 2007, No. 218, § 11.