AR SB482

Changes Arkansas income tax apportionment rules to use destination-based sourcing for sales to the United States Government, matching the sourcing method used for sales to other customers.

Amends Arkansas Code § 26-5-101 (Multistate Tax Compact) and § 26-51-716 to exclude federal government purchases from origin-based sourcing rules and instead apply destination-based sourcing.

Removes the origin-based requirement that previously sourced U.S. Government sales to Arkansas based on where the property was shipped from within the state.

Effective for tax years beginning on or after January 1, 2022.

Addresses legislative concern that origin-based sourcing for federal contractor sales resulted in actual double taxation and disadvantaged Arkansas-based contractors.