HB2100 Summary

• Changes Arkansas income apportionment methodology from "cost of performance" to "market-based sourcing" for receipts from services and intangible property, effective January 1, 2018

• Replaces "business income" and "nonbusiness income" terminology with "apportionable income" and "nonapportionable income" throughout the Multistate Tax Compact and Uniform Division of Income for Tax Purposes Act

• Modifies the sales receipts factor calculation to weight it double (2x) in the apportionment formula while maintaining property and payroll factors, with denominator of four (4)

• Expands the definition of "receipts" to include market-based sourcing rules where taxpayer's market for sales determines state assignment, including specific provisions for real property, tangible personal property, services, and intangible property

• Repeals Arkansas Code § 26-51-722 (Effective date provision) and applies these changes to all tax years beginning on or after January 1, 2018