AR SB253

Partnerships with income from activities both within and outside Arkansas must use apportionment methods described in §§ 26-51-702 — 26-51-717 to determine the portion of income allocated to Arkansas.

Partnership income solely from business activities within Arkansas continues to be allocated entirely to Arkansas.

The Director of the Department of Finance and Administration may require or taxpayers may request modifications to the apportionment method to accurately reflect the partnership's income based on business activity in the state.

Each partner's distributive share of partnership income allocated to Arkansas must be included in the partner's gross income as specified in § 26-51-405.

The act is effective for tax years beginning on or after January 1, 2013.