AR SB484

Clarifies that nonresident individuals pay Arkansas income tax only on income earned while physically located in Arkansas, with work performed outside the state exempt from Arkansas taxation.

Defines work performed in Arkansas as occurring when an individual is physically located in the state while performing the work.

Excludes work performed in Arkansas from being treated as "outside income" for Arkansas residents seeking tax credits for taxes paid to other states.

Expands the definition of "employer" under withholding law to include persons doing business outside Arkansas who pay wages for services performed within the state.

Effective for tax years beginning January 1, 2021, with the withholding definition effective the first day of the calendar month following the law's approval (approved April 29, 2021).