AR HB1002

Exempts 100% of net capital gains from Arkansas income tax when Arkansas property is sold, if the property was acquired after July 1, 2011 and owned for more than one uninterrupted year before sale

Defines "Arkansas property" as real property located entirely within the state, tangible property in-state for at least one year, intangible property of in-state entities, or ownership interests in in-state entities

Allows exemption for gains from both direct ownership and indirect ownership through pass-through entities (corporations, LLCs, partnerships, etc.)

Requires the Director of the Department of Finance and Administration to promulgate rules for implementation

Effective for tax years beginning on or after January 1, 2012