AR HB1500

Repeals Arkansas's income tax apportionment "throwback rule," which currently requires multistate businesses to attribute sales to Arkansas when they ship goods from Arkansas to states where they are not subject to tax

Amends both the Multistate Tax Compact (Arkansas Code § 26-5-101) and state income tax provisions (§ 26-51-716) to eliminate the throwback rule sourcing requirements

Implements a phased approach that was previously scheduled to reduce throwback attribution from 85.71% in 2024 to 0% by 2030, but this bill accelerates full repeal

Effective for tax years beginning on or after January 1, 2025

Follows recommendation from the Arkansas Tax Reform and Relief Legislative Task Force, with stated goal of encouraging investment and job creation by multistate enterprises