AR HB1562

Amends Arkansas Code § 26-51-802(c) to require partnerships filing Arkansas partnership returns with income from both within and outside Arkansas to apportion income under the Uniform Division of Income for Tax Purposes Act (§ 26-51-701 et seq.).

Partnership income from activities within Arkansas reflected on partnership returns shall be allocated to the state by each partner as determined and reported on the Arkansas partnership return.

Allows partnerships or the Director of the Department of Finance and Administration to petition for alternative apportionment methods if standard apportionment does not fairly represent business activity in Arkansas, including separate accounting, exclusion/inclusion of factors, or other equitable methods.

Effective for tax years beginning on and after January 1, 2018.