AR HB1559

Amends the definition of "member" under Arkansas tax law to clarify that it includes shareholders of S-corporations, partners in various partnership types, LLC members, and trust beneficiaries, but explicitly excludes C-corporations.

Modifies withholding requirements for pass-through entities to include section 26-51-205 income tax rates alongside existing rates when withholding on nonresident members' shares of state-sourced income.

Updates provisions requiring pass-through entities to file signed agreements with the director confirming nonresident members will timely file Arkansas tax returns, pay taxes due, and submit to state jurisdiction.

Amends composite return filing rules to reference section 26-51-205 rates and clarifies that nonresident members can file individual returns and receive credit for taxes withheld on their behalf by the pass-through entity.

Establishes an effective date of January 1, 2018 for all amended sections.