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AR HB1045
Bill
Status
4/10/2023
Primary Sponsor
Howard Beaty
Click for details
AI Summary
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Phases out Arkansas's income tax apportionment "throwback rule" gradually between 2024 and 2030 to encourage investment and job creation by multistate businesses.
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For sales where the taxpayer is not taxable in the purchaser's state, gradually reduces the percentage of sales sourced to Arkansas from 85.71% in 2024 to 0% by 2030.
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Implements seven-year phase-out schedule: 85.71% (2024), 71.42% (2025), 57.13% (2026), 42.84% (2027), 28.55% (2028), 14.26% (2029), and 0% (2030 onward).
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Amends Arkansas Code § 26-5-101 (Multistate Tax Compact) and § 26-51-716 (tangible personal property sales) with identical phase-out provisions.
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Effective for tax years beginning January 1, 2024 and approved April 10, 2023.
Legislative Description
To Enhance Economic Competitiveness By Phasing Out The Throwback Rule.
Last Action
Notification that HB1045 is now Act 485
4/10/2023