PocketLaw | Arkansas Code | Multistate Tax Compact. [Effective January

Multistate Tax Compact. [Effective January 1, 2021.]

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The “Multistate Tax Compact” is enacted into law and entered into with all jurisdictions legally joining therein, in the form substantially as follows:

MULTISTATE TAX COMPACT

ARTICLE I Purposes

The purposes of this compact are to:

(1) Facilitate proper determination of state and local tax liability of multistate taxpayers, including the equitable apportionment of tax bases and settlement of apportionment disputes;
(2) Promote uniformity or compatibility in significant components of tax systems;
(3) Facilitate taxpayer convenience and compliance in the filing of tax returns and in other phases of tax administration;
(4) Avoid duplicative taxation.

ARTICLE II Definitions

As used in this compact:

(1) “State” means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession of the United States;
(2) “Subdivision” means any governmental unit or special district of a state;
(3) “Taxpayer” means any corporation, partnership, firm, association, governmental unit or agency, or person acting as a business entity in more than one state;
(4) “Income tax” means a tax imposed on or measured by net income including any tax imposed on or measured by an amount arrived at by deducting expenses from gross income, one (1) or more forms of which expenses are not specifically and directly related to particular transactions;
(5) “Capital stock tax” means a tax measured in any way by the capital of a corporation considered in its entirety;
(6) “Gross receipts tax” means a tax, other than a sales tax, which is imposed on or measured by the gross volume of business, in terms of gross receipts or in other terms, and in the determination of which no deduction is allowed which would constitute the tax on income tax;
(7) “Sales tax” imposed with respect to the transfer for a consideration of ownership, possession, or custody of tangible personal property or the rendering of services measured by the price of the tangible personal property transferred or services rendered and which is required by state or local law to be separately stated from the sales price by the seller, or which is customarily separately stated from the sales price, but does not include a tax imposed exclusively on the sale of a specifically identified commodity or article or class of commodities or articles;
(8) “Use tax” means a nonrecurring tax, other than a sales tax, which (a) is imposed on or with respect to the exercise or enjoyment of any right or power over tangible personal property incident to the ownership, possession, or custody of that property or the leasing of that property from another including any consumption, keeping, retention, or other use of tangible personal property and (b) is complementary to a sales tax;
(9) “Tax” means an income tax, capital stock tax, gross receipts tax, sales tax, use tax, and any other tax which has a multistate impact, except that the provisions of Articles III, IV, and V of this compact shall apply only to the taxes specifically designated therein, and the provisions of Article IX of this compact shall apply only in respect to determinations pursuant to Article IV.

ARTICLE III Elements of Income Tax Laws

Taxpayer Option, State and Local Taxes.

(1) Any taxpayer subject to an income tax whose income is subject to apportionment and allocation for tax purposes pursuant to the laws of a party state or pursuant to the laws of subdivisions in two (2) or more party states may elect to apportion and allocate his income in the manner provided by the laws of such state or by the laws of such states and subdivisions without reference to this compact, or may elect to apportion and allocate in accordance with Article IV. This election for any tax year may be made in all party states or subdivisions thereof or in any one or more of the party states or subdivisions thereof without reference to the election made in the others. For the purposes of this paragraph, taxes imposed by subdivisions shall be considered separately from state taxes and the apportionment and allocation also may be applied to the entire tax base. In no instance wherein Article IV is employed for all subdivisions of a state may the sum of all apportionments and allocations to subdivisions within a state be greater than the apportionment and allocation that would be assignable to that state if the apportionment or allocation were being made with respect to a state income tax.
(2) Each party state or any subdivision thereof which imposes an income tax shall provide by law that any taxpayer required to file a return, whose only activities within the taxing jurisdiction consist of sales and do not include owning or renting real estate or tangible personal property, and whose dollar volume of gross sales made during the tax year within the state or subdivision, as the case may be, is not in excess of one hundred thousand dollars ($100,000) may elect to report and pay any tax due on the basis of a percentage of such volume, and shall adopt rates which shall produce a tax which reasonably approximates the tax otherwise due. The Multistate Tax Commission, not more than once in five years, may adjust the one hundred thousand dollar ($100,000) figure in order to reflect such changes as may occur in the real value of the dollar, and such adjusted figure, upon adoption by the commission, shall replace the one hundred thousand dollar ($100,000) figure specifically provided herein. Each party state and subdivision thereof may make the same election available to taxpayers additional to those specified in this paragraph.
(3) Nothing in this article relates to the reporting or payment of any tax other than an income tax.

Taxpayer Option, Short Form.

Coverage.

ARTICLE IV Division of Income

(1) As used in this Article, unless the context otherwise requires:
1. (a) “Business income” means income arising from transactions and activity in the regular course of the taxpayer's trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer's regular trade or business operation;
2. (b) “Commercial domicile” means the principal place from which the trade or business of the taxpayer is directed or managed;
3. (c) “Compensation” means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services;
4. (d) [Repealed.]
5. (e) “Nonbusiness income” means all income other than business income;
6. (f) “Public utility” means any business entity (1) which owns or operates any plant, equipment, property, franchise, or license for the transmission of communications, transportation of goods or persons, except by pipeline, or the production, transmission, sale, delivery, or furnishing of electricity, water, or steam; and (2) whose rates of charges for goods or services have been established or approved by a federal, state, or local government or governmental agency;
7. (g) “Sales” means all gross receipts of the taxpayer not allocated under paragraphs of this article;
8. (h) “State” means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof;
9. (i) “This state” means the state in which the relevant tax return is filed or, in the case of application of this article to the apportionment and allocation of income for local tax purposes, the subdivision or local taxing district in which the relevant tax return is filed.
(2) Any taxpayer having income from business activity which is taxable both within and without this state, other than activity as a public utility or the rendering of purely personal services by an individual, shall allocate and apportion his net income as provided in this article. If a taxpayer has income from business activity as a public utility but derives the greater percentage of his income from activities subject to this article, the taxpayer may elect to allocate and apportion his entire net income as provided in this article.
(3) For purposes of allocation and apportionment of income under this article, a taxpayer is taxable in another state if (1) in that state he is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax, or (2) that state has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the state does or does not.
(4) Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that they constitute nonbusiness income, shall be allocated as provided in paragraphs 5 through 8 of this article.
(5)
1. (a) Net rents and royalties from real property located in this state are allocable to this state.
2. (b) Net rents and royalties from tangible personal property are allocable to this state: (1) if and to the extent that the property is utilized in this state, or (2) in their entirety if the taxpayer's commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.
3. (c) The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession.
(6)
1. (a) Capital gains and losses from sales of real property located in this state are allocable to this state.
2. (b) Capital gains and losses from sales of tangible personal property are allocable to this state if (1) the property had a situs in this state at the time of the sale, or (2) the taxpayer's commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs.
3. (c) Capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer's commercial domicile is in this state.
(7) Interest and dividends are allocable to this state if the taxpayer's commercial domicile is in this state.
(8)
1. (a) Patent and copyright royalties are allocable to this state: (1) if and to the extent that the patent or copyright is utilized by the payer in this state, or (2) if and to the extent that the patent copyright is utilized by the payer in the state in which the taxpayer is not taxable and the taxpayer's commercial domicile is in this state.
2. (b) A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer's commercial domicile is located.
3. (c) A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the copyright is utilized in the state in which the taxpayer's commercial domicile is located.
(9) For the tax year beginning January 1, 2021, all business income shall be apportioned to this state by multiplying the income by a fraction, the numerator of which is the total sales of the taxpayer in this state during the tax period and the denominator of which is the total sales of the taxpayer everywhere during the tax period.
(10) [Repealed.]
(11) [Repealed.]
(12) [Repealed.]
(13) [Repealed.]
(14) [Repealed.]
(15) [Repealed.]
(16) Sales of tangible personal property are in this state if:
1. (a) The property is delivered or shipped to a purchaser, other than the United States Government, within this state regardless of the f.o.b. point or other conditions of the sale; or
2. (b) The property is shipped from an office, store, warehouse, factory, or other place of storage in this state and (1) the purchaser is the United States Government or (2) the taxpayer is not taxable in the state of the purchaser.
(17) Sales, other than sales of tangible personal property, are in this state if:
1. (a) The income-producing activity is performed in this state; or
2. (b) The income-producing activity is performed both in and outside this state and a greater proportion of the income-producing activity is performed in this state than in any other state, based on costs of performance.
(18) If the allocation and apportionment provisions of this Article do not fairly represent the extent of the taxpayer's business activity in this state, the taxpayer may petition for or the tax administrator may require, in respect to all or any part of the taxpayer's business activity, if reasonable:
1. (a) Separate accounting;
2. (b) The inclusion of one (1) or more additional factors which will fairly represent the taxpayer's business activity in this state; or
3. (c) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income.

ARTICLE V Elements of Sales and Use Tax Laws

Tax Credit.

(1) Each purchaser liable for a use tax on tangible personal property shall be entitled to full credit for the combined amount or amounts of legally imposed sales or use taxes paid by him with respect to the same property to another state and any subdivision thereof. The credit shall be applied first against the amount of any use tax due the state, and any unused portion of the credit shall then be applied against the amount of any use tax due a subdivision. For purposes of applying this credit by other states to Arkansas residents, the term “gross receipts tax” as applied to Arkansas residents by Title 26, Chapter 52 of this Code, shall be synonymous with the term “sales tax” as used by the state applying such credit.
(2) Whenever a vendor receives and accepts in good faith from a purchaser a resale or other exemption certificate or other written evidence of exemption authorized by the appropriate state or subdivision taxing authority, the vendor shall be relieved of liability for a sales or use tax with respect to the transaction.

Exemption Certificates, Vendors May Rely.

ARTICLE VI The Commission

Organization and Management.

(1)
1. (a) The Multistate Tax Commission is hereby established. It shall be composed of one (1) “member” from each party state who shall be the head of the state agency charged with the administration of the types of taxes to which this compact applies. If there is more than one (1) such agency the state shall provide by law for the selection of the commission member from the heads of the relevant agencies. State law may provide that a member of the commission be represented by an alternate but only if there is on file with the commission written notification of the designation and identity of the alternate. The attorney general of each party state or his designee, or other counsel if the laws of the party state specifically provide, shall be entitled to attend the meetings of the commission, but shall not vote. Such attorneys general, designees, or other counsel shall receive all notices of meetings required under paragraph 1(e) of this article.
2. (b) Each party state shall provide by law for the selection of representatives from its subdivisions affected by this compact to consult with the commission member from that state.
3. (c) Each member shall be entitled to one (1) vote. The commission shall not act unless a majority of the members are present, and no action shall be binding unless approved by a majority of the total number of members.
4. (d) The commission shall adopt an official seal to be used as it may provide.
5. (e) The commission shall hold an annual meeting and such other regular meetings as its bylaws may provide and such special meetings as its executive committee may determine. The commission bylaws shall specify the dates of the annual and any other regular meetings, and shall provide for the giving of notice of annual, regular, and special meetings. Notices of special meetings shall include the reasons therefor and an agenda of the items to be considered.
6. (f) The commission shall elect annually, from among its members, a chairman, a vice-chairman, and a treasurer. The commission shall appoint an executive director who shall serve at its pleasure, and it shall fix his duties and compensation. The executive director shall be secretary of the commission. The commission shall make provision for the bonding of such of its officers and employees as it may deem appropriate.
7. (g) Irrespective of the civil service, personnel, or other merit system laws of any party state, the executive director shall appoint or discharge such personnel as may be necessary for the performance of the functions of the commission and shall fix their duties and compensation. The commission bylaws shall provide for personnel policies and programs.
8. (h) The commission may borrow, accept, or contract for the services of personnel from any state, the United States, or any other governmental entity.
9. (i) The commission may accept for any of its purposes and functions any and all donations and grants of money, equipment, supplies, materials, and services, conditional or otherwise, from any governmental entity, and may utilize and dispose of the same.
10. (j) The commission may establish one or more offices for the transacting of its business.
11. (k) The commission shall adopt bylaws for the conduct of its business. The commission shall publish its bylaws in convenient form, and shall file a copy of the bylaws and any amendments thereto with the appropriate agency or officer in each of the party states.
12. (l) The commission annually shall make to the governor and legislature of each party state a report covering its activities for the preceding year. Any donation or grant accepted by the commission or services borrowed shall be reported in the annual report of the commission, and shall include the nature, amount, and conditions, if any, of the donation, gift, grant or services borrowed and the identity of the donor or lender. The commission may make additional reports as it may deem desirable.
(2)
1. (a) To assist in the conduct of its business when the full commission is not meeting, the commission shall have an executive committee of seven (7) members, including the chairman, vice-chairman, treasurer and four (4) other members elected annually by the commission. The executive committee, subject to the provisions of this compact and consistent with the policies of the commission, shall function as provided in the bylaws of the commission.
2. (b) The commission may establish advisory and technical committees, membership on which may include private persons and public officials, in furthering any of its activities. Such committees may consider any matter of concern to the commission, including problems of special interest to any party state and problems dealing with particular types of taxes.
3. (c) The commission may establish such additional committees as its bylaws may provide.
(3) In addition to powers conferred elsewhere in this compact, the commission shall have power to:
1. (a) Study state and local tax systems and particular types of state and local taxes;
2. (b) Develop and recommend proposals for an increase in uniformity or compatibility of state and local tax laws with a view toward encouraging the simplification and improvement of state and local tax law and administration;
3. (c) Compile and publish information as in its judgment would assist the party states in implementation of the compact and taxpayers in complying with state and local tax laws;
4. (d) Do all things necessary and incidental to the administration of its functions pursuant to this compact.
(4)
1. (a) The commission shall submit to the Governor or designated officer or officers of each party state a budget of its estimated expenditures for such period as may be required by the laws of that state for presentation to the legislature thereof.
2. (b) Each of the commission's budgets of estimated expenditures shall contain specific recommendations of the amounts to be appropriated by each of the party states. The total amount of appropriations requested under any such budget shall be apportioned among the party states as follows: one-tenth (1/10) in equal shares; and the remainder in proportion to the amount of revenue collected by each party state and its subdivisions from income taxes, capital stock taxes, gross receipts taxes, and sales and use taxes. In determining such amounts, the commission shall employ such available public sources of information as, in its judgment, present the most equitable and accurate comparisons among the party states. Each of the commission's budgets of estimated expenditures and requests for appropriations shall indicate the sources used in obtaining information employed in applying the formula contained in this paragraph.
3. (c) The commission shall not pledge the credit of any party state. The commission may meet any of its obligations in whole or in part with funds available to it under paragraph 1(i) of this article; provided that the commission takes specific action setting aside such funds prior to incurring any obligation to be met in whole or in part in such manner. Except where the commission makes use of funds available to it under paragraph 1(i), the commission shall not incur any obligation prior to the allotment of funds by the party states adequate to meet the same.
4. (d) The commission shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the commission shall be subject to the audit and accounting procedures established under its bylaws. All receipts and disbursements of funds handled by the commission shall be audited yearly by a certified or licensed public accountant and the report of the audit shall be included in and become part of the annual report of the commission.
5. (e) The accounts of the commission shall be open at any reasonable time for inspection by duly constituted officers of the party states and by any persons authorized by the commission.
6. (f) Nothing contained in this article shall be construed to prevent commission compliance with laws relating to audit or inspection of accounts by or on behalf of any government contributing to the support of the commission.

Committees.

Powers.

Finance.

ARTICLE VII Uniform Regulations and Forms

(1) Whenever any two (2) or more party states, or subdivisions of party states, have uniform or similar provisions of law relating to an income tax, capital stock tax, gross receipts tax, sales or use tax, the commission may adopt uniform regulations for any phase of the administration of such law, including assertion of jurisdiction to tax, or prescribing uniform tax forms. The commission may also act with respect to the provisions of Article IV of this compact.
(2) Prior to the adoption of any regulation, the commission shall:
1. (a) As provided in its bylaws, hold at least one (1) public hearing on due notice to all affected party states and subdivisions thereof and to all taxpayers and other persons who have made timely request of the commission for advance notice of its regulation-making proceedings.
2. (b) Afford all affected party states and subdivisions and interested persons an opportunity to submit relevant written data and views, which shall be considered fully by the commission.
(3) The commission shall submit any regulations adopted by it to the appropriate officials of all party states and subdivisions to which they might apply. Each such state and subdivision shall consider any such regulation for adoption in accordance with its own laws and procedures.

ARTICLE VIII Interstate Audits

(1) This article shall be in force only in those party states that specifically provide therefor by statute.
(2) Any party state or subdivision thereof desiring to make or participate in an audit of any accounts, books, papers, records, or other documents may request the commission to perform the audit on its behalf. In responding to the request, the commission shall have access to and may examine, at any reasonable time, such accounts, books, papers, records, and other documents and any relevant property or stock of merchandise. The commission may enter into agreements with party states or their subdivisions for assistance in performance of the audit. The commission shall make charges, to be paid by the state or local government or governments for which it performs the service, for any audits performed by it in order to reimburse itself for the actual costs incurred in making the audit.
(3) The commission may require the attendance of any person within the state where it is conducting an audit or part thereof at a time and place fixed by it within such state for the purpose of giving testimony with respect to any account, book, paper, document, other record, property, or stock of merchandise being examined in connection with the audit. If the person is not within the jurisdiction, he may be required to attend for such purpose at any time and place fixed by the commission within the state of which he is a resident, provided that such state has adopted this article.
(4) The commission may apply to any court having power to issue compulsory process for orders in aid of its powers and responsibilities pursuant to this article and any and all such courts shall have jurisdiction to issue such orders. Failure of any person to obey any such order shall be punishable as contempt of the issuing court. If the party or subject matter on account of which the commission seeks an order is within the jurisdiction of the court to which application is made, such application may be to a court in the state or subdivision on behalf of which the audit is being made or a court in the state in which the object of the order being sought is situated. The provisions of this paragraph apply only to courts in a state that has adopted this article.
(5) The commission may decline to perform any audit requested if it finds that its available personnel or other resources are insufficient for the purpose or that, in the terms requested, the audit is impracticable of satisfactory performance. If the commission, on the basis of its experience, has reason to believe that an audit of a particular taxpayer, either at a particular time or on a particular schedule, would be of interest to a number of party states or their subdivisions, it may offer to make the audit or audits, the offer to be contingent on sufficient participation therein as determined by the commission.
(6) Information obtained by any audit pursuant to this article shall be confidential and available only for tax purposes to party states, their subdivisions, or the United States. Availability of information shall be in accordance with the laws of the states for subdivisions on whose account the commission performs the audit, and only through the appropriate agencies or officers of such states or subdivisions. Nothing in this article shall be construed to require any taxpayer to keep records for any period not otherwise required by law.
(7) Other arrangements made or authorized pursuant to law for cooperative audit by or on behalf of the party states or any of their subdivisions are not superseded or invalidated by this article.
(8) In no event shall the commission make any charge against a taxpayer for an audit.
(9) As used in this article, “tax,” in addition to the meaning ascribed to it in Article II, means any tax or license fee imposed in whole or in part for revenue purposes.

ARTICLE IX Arbitration

(1) Whenever the commission finds a need for settling disputes concerning apportionments and allocations by arbitration, it may adopt a regulation placing this article in effect, notwithstanding the provisions of Article VII.
(2) The commission shall select and maintain an arbitration panel composed of officers and employees of state and local governments and private persons who shall be knowledgeable and experienced in matters of tax law and administration.
(3) Whenever a taxpayer who has elected to employ Article IV, or whenever the laws of the party state or subdivision thereof are substantially identical with the relevant provisions of Article IV, the taxpayer, by written notice to the commission and to each party state or subdivision thereof that would be affected, may secure arbitration of an apportionment or allocation, if he is dissatisfied with the final administrative determination of the tax agency of the state or subdivision with respect thereto on the ground that it would subject him to double or multiple taxation by two (2) or more party states or subdivisions thereof. Each party state and subdivision thereof hereby consents to the arbitration as provided herein, and agrees to be bound thereby.
(4) The arbitration board shall be composed of one (1) person selected by the taxpayer, one (1) by the agency or agencies involved, and one (1) member of the commission's arbitration panel. If the agencies involved are unable to agree on the person to be selected by them, such person shall be selected by lot from the total membership of the arbitration panel. The two (2) persons selected for the board in the manner provided by the foregoing provisions of this paragraph shall jointly select the third member of the board. If they are unable to agree on the selection, the third member shall be selected by lot from among the total membership of the arbitration panel. No member of a board selected by lot shall be qualified to serve if he is an officer or employee or is otherwise affiliated with any party to the arbitration proceeding. Residence within the jurisdiction of a party to the arbitration proceeding shall not constitute affiliation within the meaning of this paragraph.
(5) The board may sit in any state or subdivision party to the proceeding, in the state of the taxpayer's incorporation, residence, or domicile, in any state where the taxpayer does business, or in any place that it finds most appropriate for gaining access to evidence relevant to the matter before it.
(6) The board shall give due notice of the times and places of its hearings. The parties shall be entitled to be heard, to present evidence, and to examine and cross-examine witnesses. The board shall act by majority vote.
(7) The board shall have power to administer oaths, take testimony, subpoena and require the attendance of witnesses and the production of accounts, books, papers, records, and other documents, and issue commissions to take testimony. Subpoenas may be signed by any member of the board. In case of failure to obey a subpoena, and upon application by the board, any judge of a court of competent jurisdiction of the state in which the board is sitting or in which the person to whom the subpoena is directed may be found may make an order requiring compliance with the subpoena, and the court may punish failure to obey the order as a contempt. The provisions of this paragraph apply only in states that have adopted this article.
(8) Unless the parties otherwise agree the expenses and other costs of the arbitration shall be assessed and allocated among the parties by the board in such manner as it may determine. The commission shall fix a schedule of compensation for members of arbitration boards and of other allowable expenses and costs. No officer or employee of a state or local government who serves as a member of a board shall be entitled to compensation therefor unless he is required on account of his service to forego the regular compensation attaching to his public employment, but any such board member shall be entitled to expenses.
(9) The board shall determine the disputed apportionment or allocation and any matters necessary thereto. The determinations of the board shall be final for purposes of making the apportionment or allocation, but for no other purpose.
(10) The board shall file with the commission and with each tax agency represented in the proceeding: the determination of the board; the board's written statement of its reasons therefor; the record of the board's proceedings; and any other documents required by the arbitration rules of the commission to be filed.
(11) The commission shall publish the determinations of boards together with the statements of the reasons therefor.
(12) The commission shall adopt and publish rules of procedure and practice and shall file a copy of such rules and of any amendment thereto with the appropriate agency or officer in each of the party states.
(13) Nothing contained herein shall prevent at any time a written compromise of any matter or matters in dispute, if otherwise lawful, by the parties to the arbitration proceeding.

ARTICLE X Entry Into Force and Withdrawal

(1) This compact shall enter into force when enacted into law by any seven (7) states. Thereafter, this compact shall become effective as to any other state upon its enactment thereof. The commission shall arrange for notification of all party states whenever there is a new enactment of the compact.
(2) Any party state may withdraw from this compact by enacting a statute repealing the same. No withdrawal shall affect any liability already incurred by or chargeable to a party state prior to the time of such withdrawal.
(3) No proceeding commenced before an arbitration board prior to the withdrawal of a state and to which the withdrawing state or any subdivision thereof is a party shall be discontinued or terminated by the withdrawal, nor shall the board thereby lose jurisdiction over any of the parties to the proceeding necessary to make a binding determination therein.
1. (a) Affect the power of any state or subdivision thereof to fix rates of taxation, except that a party state shall be obligated to implement Article III 2 of this compact.
2. (b) Apply to any tax or fixed fee imposed for the registration of a motor vehicle or any tax on motor fuel, other than a sales tax; provided that the definition of “tax” in Article VIII 9 may apply for the purposes of that article and the commission's powers of study and recommendation pursuant to Article VI 3 may apply.
3. (c) Withdraw or limit the jurisdiction of any state or local court or administrative officer or body with respect to any person, corporation, or other entity or subject matter, except to the extent that such jurisdiction is expressly conferred by or pursuant to this compact upon another agency or body.
4. (d) Supersede or limit the jurisdiction of any court of the United States.
1. Every taxpayer required to file an income tax return pursuant to provisions of the Income Tax Act of 1929, § 26-51-101 et seq., whose only activity within this state consists of sales and does not include owning or renting real estate or tangible personal property in this state and whose dollar volume of gross sales made during the last year within the State of Arkansas or its subdivisions, as the case may be, is not in excess of one hundred thousand dollars ($100,000) may elect to report any tax due the State of Arkansas on the basis of a percentage of this volume, and the Secretary of the Department of Finance and Administration is authorized to adopt rates which are calculated to produce a tax thereon which reasonably approximates the tax otherwise due under the laws of this state from these taxpayers.
2. In the event the Multistate Tax Commission shall adjust the one-hundred-thousand-dollar figure provided in this section in the manner authorized in the Multistate Tax Compact, § 26-5-101, the adjusted figure shall replace the one-hundred-thousand-dollar figure provided in this section.
1. The Governor, after consultation with representatives of local governments, may appoint a committee of three (3) persons who are representative of subdivisions of this state affected, or likely to be affected, by the Multistate Tax Compact, § 26-5-101.
2. The member representing this state on the Multistate Tax Commission, or any alternate designated by him or her to serve on the commission, shall consult regularly with these appointees, if they are named, in accordance with Article VI 1(b) of the compact.
1. The Department of Finance and Administration shall prepare an annual report detailing the activities of the Multistate Tax Commission and Arkansas's participation in the activities of the commission.
2. The report required under this section shall:
  1. Include without limitation the recommendations of the commission and any activity on Arkansas's behalf by representatives of the department; and
  2. Be filed with the President Pro Tempore of the Senate and the Speaker of the House of Representatives no later than September 30 or the next regular business day if September 30 falls on a weekend or legal holiday.
1. The Secretary of the Department of Finance and Administration shall employ one (1) or more attorneys for the Revenue Division of the Department of Finance and Administration if he or she deems it necessary and if a saving of money can be had by employing one (1) or more attorneys for the division.
2. Each division attorney may maintain and defend the interests of the division in matters before:
  1. Administrative bodies;
  2. Arkansas trial courts;
  3. The Court of Appeals;
  4. The Supreme Court;
  5. The United States Supreme Court; and
  6. All other federal courts.
1. 1. 1. The Secretary of the Department of Finance and Administration may:
      1. Institute and prosecute in his or her name as such all suits and other proceedings necessary for the collection of any taxes or fees collectible by him or her and which have become delinquent; and
      2. Defend all suits and other proceedings concerning taxes, fees, or licenses administered by the secretary.
    2. All suits and proceedings instituted by the secretary or defended by the secretary that concern taxes, fees, or licenses administered by the Revenue Division of the Department of Finance and Administration may be maintained or defended by an attorney authorized to represent the interests of the division pursuant to § 26-17-202.
  2. No deposits of advance cost shall be required of the secretary in any suit or proceedings, nor shall he or she be required to give bond for cost, indemnity, or stay as a condition to the institution of any suit or proceedings or to the issuance, service, or execution of any process in any suit or proceedings or ancillary to any suit or proceedings or to the appeal from any adverse action.
2. 1. The secretary shall not be required to advance or pay any court costs to any court clerk for the institution or prosecution of any suit filed in his or her official capacity.
  2. No bond shall be required of the secretary in obtaining restraining orders, injunctions, or any other cases in which a bond is required to be made by a litigant, including supersedeas bond upon appeal.
1. Any person, firm, or corporation found guilty of violating provisions of this subchapter and any person, firm, or corporation that shall willfully evade or willfully fail to pay any Arkansas tax except ad valorem taxes on real estate as provided by law shall be guilty of a misdemeanor.
2. 1. Any person convicted shall be fined in any sum not less than twenty-five dollars ($25.00) nor more than five thousand dollars ($5,000).
  2. Any person, firm, or corporation so convicted shall, as a part of the penalty of the conviction, pay to the state a sum equal to three (3) times the amount of taxes avoided.
  3. Any person or company official so convicted shall be punished by imprisonment in the county jail for a period of not to exceed six (6) months.
3. Each transaction shall constitute a separate offense.
1. If the Secretary of the Department of Finance and Administration, or any of his or her deputies or assistants shall collect or receive any tax, revenue, or funds by virtue of his or her official duties or position and shall neglect or fail to turn them over to the Treasurer of State within ten (10) days after the tax, revenue, or funds shall have come into his or her hands or possession, the offender shall be deemed guilty of a felony and be punished by confinement in the state penitentiary for a period of not less than one (1) year and not more than five (5) years.
2. The secretary shall be liable upon his or her official bond for all funds not turned into the Treasurer of State within ten (10) days after they may come into the hands of the secretary or any of his or her deputies or assistants.
1. The Secretary of the Department of Finance and Administration shall make daily deposits into the State Treasury of all moneys and checks collected by him or her.
2. The Treasurer of State shall promptly return to the secretary all checks which for any reason were not paid, and it shall be the duty of the secretary to collect all such checks.
1. 1. If any return, claim, statement, or other document required to be filed within a prescribed period or on or before a prescribed date under any state tax law is, after that period or date, delivered by the United States mail to the Secretary of the Department of Finance and Administration, the date of the United States postmark stamped on the cover of the return, claim, statement, or other document shall be deemed to be the date of delivery.
  2. Only the postmark of the United States Postal Service, rather than those of private postage meters, shall qualify for the provisions of this section.
2. When the last day prescribed under the authority of state tax laws for performing any act or instituting any suit falls on Saturday, Sunday, or a legal holiday, the performance of the act shall be considered timely if it is performed on the next succeeding business day which is not a Saturday, Sunday, or legal holiday.
1. Any taxpayer who willfully attempts to evade or defeat the payment of any tax, penalty, or interest due under any state tax law shall be guilty of a Class C felony.
2. Any person who willfully assists a taxpayer in evading or defeating the payment of any tax, penalty, or interest due under any state tax law shall be guilty of a Class C felony.
1. The Secretary of the Department of Finance and Administration shall:
  1. Administer and enforce the provisions of every state tax law and when necessary shall promulgate and enforce the rules;
  2. Audit and properly determine and compute the state tax payable by any taxpayer subject to taxation under any state tax law;
  3. Assess and collect any state tax; and
  4. Administer and enforce all state tax laws.
2. The secretary shall make available at cost to the general public all rules promulgated by the secretary.
3. The secretary shall provide forms, schedules, and returns for all state tax laws.
4. The secretary may accept electronic or digital signatures as binding, valid signatures on all reports, forms, or schedules required to be filed by state law.
1. 1. The Secretary of the Department of Finance and Administration shall keep and permanently preserve the original of all official rules, decisions, and orders and the effective date thereof.
  2. 1. A copy of a rule, decision, or order made by the secretary in the administration of any state tax law may be authenticated under his or her official seal.
    2. An authenticated copy is admissible in any court in this state under § 16-46-101.
    3. The secretary may charge a reasonable fee, not to exceed five dollars ($5.00), to cover the cost of authentication.
    4. Under no circumstances shall the secretary furnish copies of records which may by law be prohibited from being made public.
2. 1. The secretary may microfilm any returns, reports, records, or documents received or issued by him or her in the administration of any state tax law.
  2. The microfilm records shall be properly indexed for easy retrieval, and one (1) copy shall be placed in a fireproof vault.
  3. These records are admissible as evidence in any court in this state under § 16-46-101 and shall have the same weight and force as the original thereof.
3. If the secretary determines that a method for the reproduction of records is more practicable than the use of microfilm, he or she may use that method.
1. 1. The Secretary of the Department of Finance and Administration is the official custodian of all records and files required by any state tax law to be filed with the Secretary of the Department of Finance and Administration and is required to take all steps necessary to maintain their confidentiality.
  2. 1. 1. Except as otherwise provided by this chapter, the records and files of the Secretary of the Department of Finance and Administration concerning the administration of any state tax law are confidential and privileged.
      2. These records and files and any information obtained from these records or files or from any examination or inspection of the premises or property of any taxpayer shall not be divulged or disclosed by the Secretary of the Department of Finance and Administration or any other person who may have obtained these records and files.
    2. It is the specific intent of this chapter that all tax returns, audit reports, and information pertaining to any tax returns, whether filed by individuals, corporations, partnerships, or fiduciaries, shall not be subject to the provisions of the Freedom of Information Act of 1967, § 25-19-101 et seq.
2. The provisions against disclosures shall not apply to the following:
  1. Publication of statistics by the Secretary of the Department of Finance and Administration classified to prevent the identification of a particular taxpayer;
  2. Use of the information in records filed under any state tax law by the Secretary of the Department of Finance and Administration when conducting any audit or investigation of any taxpayer in regard to any state tax;
  3. 1. Disclosure of information to the Attorney General of this state, any prosecuting attorney, or any other individual who is empowered by law to prosecute criminal and civil violations of any state tax law when the Secretary of the Department of Finance and Administration initiates the investigation.
    2. If the prosecution is initiated by the Attorney General or a prosecuting attorney, the Secretary of the Department of Finance and Administration shall not disclose any information unless required by subpoena issued by a circuit court.
    3. Information may be introduced as evidence by the Attorney General, a prosecuting attorney, or other individual so empowered when the individual is prosecuting any civil or criminal violation of state tax law;
  4. Disclosure compelled by any Arkansas circuit court, the Supreme Court, the Court of Appeals, or by any federal court of information involved in any case or controversy before that court;
  5. Disclosure by the taxpayer or the taxpayer's authorized agent or by the Secretary of the Department of Finance and Administration, at the taxpayer's request, of any information which the Secretary of the Department of Finance and Administration has concerning that taxpayer;
  6. Disclosure by the Secretary of the Department of Finance and Administration, at the Secretary of the Department of Finance and Administration's discretion, of information from the records of any state tax law to comparable officials of any other state or the United States who are charged with the administration of a similar tax;
  7. Disclosure of motor vehicle titling and registration information, all licenses and permits issued to owners and operators of coin-operated amusement machines pursuant to §§ 26-57-402, 26-57-408 — 26-57-421, and 26-77-303, and tax records, files, and other information relating to sales of aviation fuel at airports and other aviation fuel outlets;
  8. Disclosure of information other than income tax information at an administrative hearing held regarding the issuance, cancellation, revocation, or suspension of licenses or permits issued by the Secretary of the Department of Finance and Administration or any other state agency or department;
  9. 1. Disclosure to the Student Loan Authority Division of the Arkansas Development Finance Authority, the Division of Higher Education, the Student Loan Guarantee Foundation of Arkansas, or any Arkansas public institution of higher education of the last known address or whereabouts or the last known employer of any person from whom these agencies are charged with collecting a student loan or other student indebtedness.
    2. In providing such information, the Secretary of the Department of Finance and Administration shall not allow the Student Loan Authority Division of the Arkansas Development Finance Authority, the Student Loan Guarantee Foundation of Arkansas, the Division of Higher Education, or any Arkansas public institution of higher education to examine the tax return;
  10. 1. In order to ensure proper payment to vendors by all agencies of state government or by county governments or city governments, information about the receipt or nonreceipt of sales tax permits by vendors must be made available by the Secretary of the Department of Finance and Administration upon request by these agencies of state government or by county governments or city governments.
    2. Therefore, notwithstanding any provision of this chapter or any other law to the contrary, in instances when state agencies, boards, commissions, and other branches of state government or county governments or city governments identify to the Secretary of the Department of Finance and Administration the identity of vendors receiving payments and ask the Secretary of the Department of Finance and Administration whether these vendors have been issued sales tax permits, the Secretary of the Department of Finance and Administration shall answer these inquiries;
  11. Disclosure of the name of any taxpayer and the amount of any tax credit, tax rebate, tax discount, or commission for the collection of a tax received by such taxpayer from the following tax incentive provisions:
    1. Discount for prompt payment, § 26-52-503;
    2. Economic Investment Tax Credit Act, § 26-52-701 et seq. [repealed];
    3. Steel mill tax incentives, §§ 26-52-901 — 26-52-903 and 26-52-912 — 26-52-914;
    4. Motor fuel shrinkage allowance, § 26-55-230(a)(1)(F);
    5. Commission for sale of stamps for cigarettes and the collection of cigarette taxes, § 26-57-236(f);
    6. Credit on severance tax of oil producer, § 26-58-204;
    7. Credit on severance tax of gas producer, § 26-58-205;
    8. Refund of motor fuel tax by municipal buses, § 26-55-401 et seq.;
    9. Refund of distillate special fuel tax to interstate users, §§ 26-56-214 and 26-56-215;
    10. Credit against severance tax for the discovery of a commercial oil pool, § 15-72-706;
    11. Native wines — subsidies, § 3-5-1001 et seq.;
    12. Native wines — incentive grants, § 3-5-901 et seq.;
    13. Consolidated Incentive Act of 2003, § 15-4-2701 et seq.; and
    14. 1. Any other tax incentive program enacted after January 1, 1991, that provides a tax credit, tax rebate, tax discount, or commission for the collection of a tax, with the exception of any benefits under the income tax laws of this state.
      2. However, information that is subject to disclosure under the provisions of this subdivision (b)(11) shall not be disclosed if such information would give an advantage to competitors or bidders or if such information is exempt from disclosure under any other provision of law that exempts specified information from disclosure under any such law;
  12. Disclosure of the lists required by:
    1. Section 3-2-205(e)(4), reporting to the Alcoholic Beverage Control Division and the Alcoholic Beverage Control Board those taxpayers who hold a permit to sell alcoholic beverages and who are delinquent in state taxes; and
    2. Section 26-57-257(o)(2), reporting to the Arkansas Tobacco Control Board those taxpayers who hold a permit to sell tobacco products and cigarettes and who are delinquent in state taxes;
  13. Disclosure to the Tax Division of the Arkansas Public Service Commission of information contained in motor fuel tax records necessary to assess motor carrier companies for ad valorem taxation;
  14. 1. Disclosure of the following information from corporate franchise tax reports:
      1. The name and address of the corporation;
      2. The name of the corporation's president, vice president, secretary, treasurer, and controller;
      3. The total authorized capital stock with par value;
      4. The total issued and outstanding capital stock with par value; and
      5. The state of incorporation.
    2. In the case of a franchise tax report filed by an organization formed under the Small Business Entity Tax Pass Through Act, § 4-32-101 et seq., the confidentiality provision of subsection (a) of this section shall apply to the names of members of the organization, except those designated in the organization's franchise tax report as a manager, president, vice president, secretary, treasurer, or controller of the organization, unless the organization has no registered agent for service of process, in which case the confidentiality provisions of subsection (a) of this section shall not apply;
  15. Disclosure compelled by a subpoena issued by a state or federal prosecutor or grand jury or other state or federal entity with subpoena power;
  16. 1. Disclosure to county assessors of information that may affect personal property tax assessments, including information obtained during the course of audits or investigations concerning motor vehicles, boats, trailers, airplanes, or other items of personal property that may be subject to assessment in that county.
    2. This information may be released only following completion of an audit or investigation by the Secretary of the Department of Finance and Administration and following a determination by the Secretary of the Department of Finance and Administration that there is a strong possibility the taxpayer has failed to properly assess the taxpayer's personal property in the county.
    3. In providing this information, the Secretary of the Department of Finance and Administration shall not allow the county assessors to examine any tax returns or audit records;
  17. 1. For the purpose of the timely and accurate collection of local sales and use tax and state income tax withholding for employees, disclosure of the name and address of a taxpayer that has failed three (3) times within any consecutive twenty-four-month period to either report or remit state or local gross receipts or compensating use tax or state income tax withholding for employees and has been served with a business closure order under § 26-18-1001 et seq.
    2. Disclosure shall be made by posting weekly on the website maintained by the Department of Finance and Administration the business name, business address, and city and county in which the business is located as it appears on the sales tax permit or the state income tax withholding for employees registration of each taxpayer identified in subdivision (b)(17)(A) of this section.
    3. The information posted on the website for a taxpayer shall remain on the website until that taxpayer is no longer subject to the business closure provisions of § 26-18-1001 et seq.;
  18. 1. Disclosure to the Arkansas Economic Development Commission of any information requested regarding a tax incentive program that provides a tax credit, tax rebate, tax discount, or other economic incentive that is jointly administered by the Arkansas Economic Development Commission and the department.
    2. Any information received by the Arkansas Economic Development Commission under this section shall remain confidential and is not subject to disclosure except in accordance with this section;
  19. Disclosure of information to a bankruptcy trustee or to an employee of a bankruptcy trustee;
  20. 1. To perform audit and compliance duties, disclosure to the Division of Workforce Services of withholding tax information reported by companies doing business in Arkansas, including without limitation taxpayer names, taxpayer addresses, tax identification numbers, and tax withholding information.
    2. Information received by the Division of Workforce Services under this section shall remain confidential and is not subject to disclosure except in accordance with this section;
  21. Disclosure of information, including disclosure as required under § 26-55-232, regarding delinquent motor fuel excise tax levied by the Motor Fuel Tax Law, § 26-55-201 et seq., and by § 26-56-601 et seq., to a bonding company that provides the surety bond required by § 26-55-222 for the taxpayer that owes the delinquent tax;
  22. Disclosure of information regarding delinquent distillate special fuel tax levied by § 26-56-201 et seq., and by § 26-56-601 et seq., to a bonding company that provides the surety bond required by § 26-56-204 for the taxpayer that owes the delinquent tax;
  23. Disclosure of information regarding delinquent liquefied gas special fuel tax levied by § 26-56-301 et seq. and by § 26-56-601 et seq. to a bonding company that provides the surety bond required by § 26-56-303 for the taxpayer that owes the delinquent tax;
  24. 1. Disclosure of information in the books of the department concerning a taxpayer by the department to a joint auditor employed under the authority of § 26-75-619 when the joint auditor requests the information.
    2. Information received by the joint auditor under subdivision (b)(24)(A) of this section shall remain confidential and is not subject to disclosure except in accordance with this section; and
  25. Disclosure of information related to a business closure order under § 26-18-1001 et seq. to the Office of State Procurement for the purpose of carrying out §§ 19-11-281 and 19-11-1015.
3. The provisions of this section shall be strictly interpreted and shall not permit any other disclosure of tax information concerning a taxpayer, whether the taxpayer is an individual, a corporation, a partnership, or a fiduciary, that is contained in the records and files of the Secretary of the Department of Finance and Administration relating to income tax or any other state tax administered under this chapter.
4. 1. Any person who knowingly discloses information in violation of a provision of this section shall be guilty of a Class A misdemeanor.
  2. An employee of the state who is convicted of violating a provision of this section shall be discharged from employment in addition to any fine or imprisonment.
5. Any person who knowingly obtains or attempts to obtain any of the confidential and privileged records and files of the Secretary of the Department of Finance and Administration who is not so permitted by law is guilty of a Class A misdemeanor.
6. The Secretary of the Department of Finance and Administration shall report all violations of this section to the appropriate prosecuting attorney in this state.
7. 1. The Secretary of the Department of Finance and Administration shall promulgate such rules as are necessary to establish a reasonable procedure for making requests for and release of information under subdivision (b)(11) of this section, for allowing a taxpayer reasonable notice in advance of the release of the requested information, for a period of time up to seven (7) days from the date a request for information is made to provide notice and make necessary determinations, and to provide the methods by which the Secretary of the Department of Finance and Administration shall determine if the information requested is subject to disclosure under Arkansas law.
  2. The provisions of this section shall solely govern the release of information under subdivision (b)(11) of this section, and the release of information shall not be subject to the Freedom of Information Act of 1967, § 25-19-101 et seq.
8. 1. Upon the request of a county government or a city government, the Secretary of the Department of Finance and Administration shall provide a list of vendors within the requesting county or city who hold permits issued pursuant to the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq.
  2. Requests made pursuant to this subsection must be made in writing by an official of the county government or city government prior to August 1 of the calendar year for which the list is requested.
  3. Lists provided pursuant to the provisions of this subsection will be made available following October 1 of the year requested and will be compiled from the list of all valid sales tax permit holders within the requesting county or city as of September 1 of the year requested.
  4. 1. A reasonable fee based upon the number of permit holders within the requesting city or county may be charged for the permit search made and reported to the requesting county or city government.
    2. Fees collected under the provisions of this subsection shall be deposited into the State Central Services Fund to be treated as a refund of expenditures to reimburse the department for the costs of providing the requested information.
9. 1. The Secretary of the Department of Finance and Administration may disclose information from a return filed by a person, partnership, corporation, trust, or estate to any of the parties who signed the return:
    1. Who is the administrator, executor, or trustee of the estate filing the return;
    2. Who was a member of the partnership filing the return during any part of the period covered by the return;
    3. Who is a trustee or beneficiary of the trust filing the return;
    4. Who is an officer or bona fide shareholder of record owning one percent (1%) or more of the outstanding stock of the corporation filing the return;
    5. Who was a shareholder during any part of the period covered by the return filed by a Subchapter S corporation;
    6. Who was a member of the partnership during any part of the period covered by the partnership return; or
    7. Who is the attorney in fact duly authorized in writing by any of the persons described in subdivisions (i)(1)(A)-(F) of this section.
  2. The Secretary of the Department of Finance and Administration may also disclose all information concerning the collection activity related to a tax return to any party who signed the return.
  3. The Secretary of the Department of Finance and Administration shall promulgate such rules as are necessary to establish a reasonable procedure for making requests for and for the release of information under this section.
10. 1. The General Assembly finds that:
    1. The collection of cigarette and other tobacco products taxes and the enforcement of the Arkansas Tobacco Products Tax Act of 1977, § 26-57-201 et seq., §§ 26-57-260 and 26-57-261, and §§ 26-57-1301 — 26-57-1307, affect the fiscal soundness of the state and the public health;
    2. The Attorney General and the Director of Arkansas Tobacco Control play an important role in the enforcement of the state's tobacco laws; and
    3. The sharing of documents and other information between the Secretary of the Department of Finance and Administration, the Attorney General, and the director will put the state in a better position to prevent tobacco diversion and prevent cigarettes from being sold to youth and an already addicted adult population.
  2. The Secretary of the Department of Finance and Administration may disclose documents and other information submitted by stamp deputies appointed under § 26-57-236 or those persons licensed or permitted under the terms of the Arkansas Tobacco Products Tax Act of 1977, § 26-57-201 et seq., to the Attorney General or the director upon the request of the Attorney General or the director.
  3. 1. The documents and other information provided under this subsection shall not be disclosed by the Attorney General or the director to a person other than a person specifically authorized by the Attorney General or the director to receive the documents or other information.
    2. However, the Attorney General and the director may share the documents and other information provided under this subsection with the taxing authorities or law enforcement agencies of Arkansas or another state or with any other entity permitted by the Attorney General to aggregate the documents and other information, if the parties agree to the confidentiality requirements under this subsection.
  4. 1. The Attorney General and the director may use the documents and other information provided under this subsection by the Secretary of the Department of Finance and Administration in proceedings before any court.
    2. 1. However, the documents and other information shall not be presented in court except with the approval of the court in which the action is pending and after adequate notice to the person who initially furnished the documents or other information to the Secretary of the Department of Finance and Administration.
      2. When confidential information is presented with court approval, the documents and other information and the related evidence shall be held in camera and shall be part of the court record or trial transcript only if under seal.
1. 1. The Secretary of the Department of Finance and Administration is the official custodian of all records and files required by any state tax law to be filed with the Secretary of the Department of Finance and Administration and is required to take all steps necessary to maintain their confidentiality.
  2. 1. 1. Except as otherwise provided by this chapter, the records and files of the Secretary of the Department of Finance and Administration concerning the administration of any state tax law are confidential and privileged.
      2. These records and files and any information obtained from these records or files or from any examination or inspection of the premises or property of any taxpayer shall not be divulged or disclosed by the Secretary of the Department of Finance and Administration or any other person who may have obtained these records and files.
    2. It is the specific intent of this chapter that all tax returns, audit reports, and information pertaining to any tax returns, whether filed by individuals, corporations, partnerships, or fiduciaries, shall not be subject to the provisions of the Freedom of Information Act of 1967, § 25-19-101 et seq.
2. The provisions against disclosures shall not apply to the following:
  1. Publication of statistics by the Secretary of the Department of Finance and Administration classified to prevent the identification of a particular taxpayer;
  2. Use of the information in records filed under any state tax law by the Secretary of the Department of Finance and Administration when conducting any audit or investigation of any taxpayer in regard to any state tax;
  3. 1. Disclosure of information to the Attorney General of this state, any prosecuting attorney, or any other individual who is empowered by law to prosecute criminal and civil violations of any state tax law when the Secretary of the Department of Finance and Administration initiates the investigation.
    2. If the prosecution is initiated by the Attorney General or a prosecuting attorney, the Secretary of the Department of Finance and Administration shall not disclose any information unless required by subpoena issued by a circuit court.
    3. Information may be introduced as evidence by the Attorney General, a prosecuting attorney, or other individual so empowered when the individual is prosecuting any civil or criminal violation of state tax law;
  4. Disclosure compelled by any Arkansas circuit court, the Supreme Court, the Court of Appeals, or by any federal court of information involved in any case or controversy before that court;
  5. Disclosure by the taxpayer or the taxpayer's authorized agent or by the Secretary of the Department of Finance and Administration, at the taxpayer's request, of any information which the Secretary of the Department of Finance and Administration has concerning that taxpayer;
  6. Disclosure by the Secretary of the Department of Finance and Administration, at the Secretary of the Department of Finance and Administration's discretion, of information from the records of any state tax law to comparable officials of any other state or the United States who are charged with the administration of a similar tax;
  7. Disclosure of motor vehicle titling and registration information, all licenses and permits issued to owners and operators of coin-operated amusement machines pursuant to §§ 26-57-402, 26-57-408 — 26-57-421, and 26-77-303, and tax records, files, and other information relating to sales of aviation fuel at airports and other aviation fuel outlets;
  8. Disclosure of information other than income tax information at an administrative hearing held regarding the issuance, cancellation, revocation, or suspension of licenses or permits issued by the Secretary of the Department of Finance and Administration or any other state agency or department;
  9. 1. Disclosure to the Student Loan Authority Division of the Arkansas Development Finance Authority, the Division of Higher Education, the Student Loan Guarantee Foundation of Arkansas, or any Arkansas public institution of higher education of the last known address or whereabouts or the last known employer of any person from whom these agencies are charged with collecting a student loan or other student indebtedness.
    2. In providing such information, the Secretary of the Department of Finance and Administration shall not allow the Student Loan Authority Division of the Arkansas Development Finance Authority, the Student Loan Guarantee Foundation of Arkansas, the Division of Higher Education, or any Arkansas public institution of higher education to examine the tax return;
  10. 1. In order to ensure proper payment to vendors by all agencies of state government or by county governments or city governments, information about the receipt or nonreceipt of sales tax permits by vendors must be made available by the Secretary of the Department of Finance and Administration upon request by these agencies of state government or by county governments or city governments.
    2. Therefore, notwithstanding any provision of this chapter or any other law to the contrary, in instances when state agencies, boards, commissions, and other branches of state government or county governments or city governments identify to the Secretary of the Department of Finance and Administration the identity of vendors receiving payments and ask the Secretary of the Department of Finance and Administration whether these vendors have been issued sales tax permits, the Secretary of the Department of Finance and Administration shall answer these inquiries;
  11. Disclosure of the name of any taxpayer and the amount of any tax credit, tax rebate, tax discount, or commission for the collection of a tax received by such taxpayer from the following tax incentive provisions:
    1. Discount for prompt payment, § 26-52-503;
    2. Economic Investment Tax Credit Act, § 26-52-701 et seq. [repealed];
    3. Steel mill tax incentives, §§ 26-52-901 — 26-52-903 and 26-52-912 — 26-52-914;
    4. Motor fuel shrinkage allowance, § 26-55-230(a)(1)(F);
    5. Commission for sale of stamps for cigarettes and the collection of cigarette taxes, § 26-57-236(f);
    6. Credit on severance tax of oil producer, § 26-58-204;
    7. Credit on severance tax of gas producer, § 26-58-205;
    8. Refund of motor fuel tax by municipal buses, § 26-55-401 et seq.;
    9. Refund of distillate special fuel tax to interstate users, §§ 26-56-214 and 26-56-215;
    10. Credit against severance tax for the discovery of a commercial oil pool, § 15-72-706;
    11. Native wines — subsidies, § 3-5-1001 et seq.;
    12. Native wines — incentive grants, § 3-5-901 et seq.;
    13. Consolidated Incentive Act of 2003, § 15-4-2701 et seq.; and
    14. 1. Any other tax incentive program enacted after January 1, 1991, that provides a tax credit, tax rebate, tax discount, or commission for the collection of a tax, with the exception of any benefits under the income tax laws of this state.
      2. However, information that is subject to disclosure under the provisions of this subdivision (b)(11) shall not be disclosed if such information would give an advantage to competitors or bidders or if such information is exempt from disclosure under any other provision of law that exempts specified information from disclosure under any such law;
  12. Disclosure of the lists required by:
    1. Section 3-2-205(e)(4), reporting to the Alcoholic Beverage Control Division and the Alcoholic Beverage Control Board those taxpayers who hold a permit to sell alcoholic beverages and who are delinquent in state taxes; and
    2. Section 26-57-257(o)(2), reporting to the Arkansas Tobacco Control Board those taxpayers who hold a permit to sell tobacco products and cigarettes and who are delinquent in state taxes;
  13. Disclosure to the Tax Division of the Arkansas Public Service Commission of information contained in motor fuel tax records necessary to assess motor carrier companies for ad valorem taxation;
  14. 1. Disclosure of the following information concerning corporate franchise tax:
      1. The name and address of a corporation;
      2. The name of a corporation's president, vice president, secretary, treasurer, and controller;
      3. The total authorized capital stock with par value;
      4. The total issued and outstanding capital stock with par value;
      5. The state of incorporation; and
      6. Information necessary to report to the Secretary of State, the Bank Commissioner, the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board, the Insurance Commissioner, or any other state agency or official authorized to take action against a corporation for failure to take any action required under the Arkansas Corporate Franchise Tax Act of 1979, § 26-54-101 et seq., including without limitation information concerning whether a corporation has filed a franchise tax report, whether a corporation has paid franchise tax due, and the name and address of the registered agent or principal office of the corporation.
    2. In the case of a franchise tax report filed by an organization formed under the Small Business Entity Tax Pass Through Act, § 4-32-101 et seq., the confidentiality provision of subsection (a) of this section shall apply to the names of members of the organization, except those designated in the organization's franchise tax report as a manager, president, vice president, secretary, treasurer, or controller of the organization, unless the organization has:
      1. No registered agent for service of process, in which case the confidentiality provisions of subsection (a) of this section shall not apply; or
      2. Failed to take an action required under the Arkansas Corporate Franchise Tax Act of 1979, § 26-54-101 et seq., in which case the disclosures identified in subdivision (b)(14)(A) of this section are allowed;
  15. Disclosure compelled by a subpoena issued by a state or federal prosecutor or grand jury or other state or federal entity with subpoena power;
  16. 1. Disclosure to county assessors of information that may affect personal property tax assessments, including information obtained during the course of audits or investigations concerning motor vehicles, boats, trailers, airplanes, or other items of personal property that may be subject to assessment in that county.
    2. This information may be released only following completion of an audit or investigation by the Secretary of the Department of Finance and Administration and following a determination by the Secretary of the Department of Finance and Administration that there is a strong possibility the taxpayer has failed to properly assess the taxpayer's personal property in the county.
    3. In providing this information, the Secretary of the Department of Finance and Administration shall not allow the county assessors to examine any tax returns or audit records;
  17. 1. For the purpose of the timely and accurate collection of local sales and use tax and state income tax withholding for employees, disclosure of the name and address of a taxpayer that has failed three (3) times within any consecutive twenty-four-month period to either report or remit state or local gross receipts or compensating use tax or state income tax withholding for employees and has been served with a business closure order under § 26-18-1001 et seq.
    2. Disclosure shall be made by posting weekly on the website maintained by the Department of Finance and Administration the business name, business address, and city and county in which the business is located as it appears on the sales tax permit or the state income tax withholding for employees registration of each taxpayer identified in subdivision (b)(17)(A) of this section.
    3. The information posted on the website for a taxpayer shall remain on the website until that taxpayer is no longer subject to the business closure provisions of § 26-18-1001 et seq.;
  18. 1. Disclosure to the Arkansas Economic Development Commission of any information requested regarding a tax incentive program that provides a tax credit, tax rebate, tax discount, or other economic incentive that is jointly administered by the Arkansas Economic Development Commission and the department.
    2. Any information received by the Arkansas Economic Development Commission under this section shall remain confidential and is not subject to disclosure except in accordance with this section;
  19. Disclosure of information to a bankruptcy trustee or to an employee of a bankruptcy trustee;
  20. 1. To perform audit and compliance duties, disclosure to the Division of Workforce Services of withholding tax information reported by companies doing business in Arkansas, including without limitation taxpayer names, taxpayer addresses, tax identification numbers, and tax withholding information.
    2. Information received by the Division of Workforce Services under this section shall remain confidential and is not subject to disclosure except in accordance with this section;
  21. Disclosure of information, including disclosure as required under § 26-55-232, regarding delinquent motor fuel excise tax levied by the Motor Fuel Tax Law, § 26-55-201 et seq., and by § 26-56-601 et seq., to a bonding company that provides the surety bond required by § 26-55-222 for the taxpayer that owes the delinquent tax;
  22. Disclosure of information regarding delinquent distillate special fuel tax levied by § 26-56-201 et seq., and by § 26-56-601 et seq., to a bonding company that provides the surety bond required by § 26-56-204 for the taxpayer that owes the delinquent tax;
  23. Disclosure of information regarding delinquent liquefied gas special fuel tax levied by § 26-56-301 et seq. and by § 26-56-601 et seq. to a bonding company that provides the surety bond required by § 26-56-303 for the taxpayer that owes the delinquent tax;
  24. 1. Disclosure of information in the books of the department concerning a taxpayer by the department to a joint auditor employed under the authority of § 26-75-619 when the joint auditor requests the information.
    2. Information received by the joint auditor under subdivision (b)(24)(A) of this section shall remain confidential and is not subject to disclosure except in accordance with this section; and
  25. Disclosure of information related to a business closure order under § 26-18-1001 et seq. to the Office of State Procurement for the purpose of carrying out §§ 19-11-281 and 19-11-1015.
3. The provisions of this section shall be strictly interpreted and shall not permit any other disclosure of tax information concerning a taxpayer, whether the taxpayer is an individual, a corporation, a partnership, or a fiduciary, that is contained in the records and files of the Secretary of the Department of Finance and Administration relating to income tax or any other state tax administered under this chapter.
4. 1. Any person who knowingly discloses information in violation of a provision of this section shall be guilty of a Class A misdemeanor.
  2. An employee of the state who is convicted of violating a provision of this section shall be discharged from employment in addition to any fine or imprisonment.
5. Any person who knowingly obtains or attempts to obtain any of the confidential and privileged records and files of the Secretary of the Department of Finance and Administration who is not so permitted by law is guilty of a Class A misdemeanor.
6. The Secretary of the Department of Finance and Administration shall report all violations of this section to the appropriate prosecuting attorney in this state.
7. 1. The Secretary of the Department of Finance and Administration shall promulgate such rules as are necessary to establish a reasonable procedure for making requests for and release of information under subdivision (b)(11) of this section, for allowing a taxpayer reasonable notice in advance of the release of the requested information, for a period of time up to seven (7) days from the date a request for information is made to provide notice and make necessary determinations, and to provide the methods by which the Secretary of the Department of Finance and Administration shall determine if the information requested is subject to disclosure under Arkansas law.
  2. The provisions of this section shall solely govern the release of information under subdivision (b)(11) of this section, and the release of information shall not be subject to the Freedom of Information Act of 1967, § 25-19-101 et seq.
8. 1. Upon the request of a county government or a city government, the Secretary of the Department of Finance and Administration shall provide a list of vendors within the requesting county or city who hold permits issued pursuant to the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq.
  2. Requests made pursuant to this subsection must be made in writing by an official of the county government or city government prior to August 1 of the calendar year for which the list is requested.
  3. Lists provided pursuant to the provisions of this subsection will be made available following October 1 of the year requested and will be compiled from the list of all valid sales tax permit holders within the requesting county or city as of September 1 of the year requested.
  4. 1. A reasonable fee based upon the number of permit holders within the requesting city or county may be charged for the permit search made and reported to the requesting county or city government.
    2. Fees collected under the provisions of this subsection shall be deposited into the State Central Services Fund to be treated as a refund of expenditures to reimburse the department for the costs of providing the requested information.
9. 1. The Secretary of the Department of Finance and Administration may disclose information from a return filed by a person, partnership, corporation, trust, or estate to any of the parties who signed the return:
    1. Who is the administrator, executor, or trustee of the estate filing the return;
    2. Who was a member of the partnership filing the return during any part of the period covered by the return;
    3. Who is a trustee or beneficiary of the trust filing the return;
    4. Who is an officer or bona fide shareholder of record owning one percent (1%) or more of the outstanding stock of the corporation filing the return;
    5. Who was a shareholder during any part of the period covered by the return filed by a Subchapter S corporation;
    6. Who was a member of the partnership during any part of the period covered by the partnership return; or
    7. Who is the attorney in fact duly authorized in writing by any of the persons described in subdivisions (i)(1)(A)-(F) of this section.
  2. The Secretary of the Department of Finance and Administration may also disclose all information concerning the collection activity related to a tax return to any party who signed the return.
  3. The Secretary of the Department of Finance and Administration shall promulgate such rules as are necessary to establish a reasonable procedure for making requests for and for the release of information under this section.
10. 1. The General Assembly finds that:
    1. The collection of cigarette and other tobacco products taxes and the enforcement of the Arkansas Tobacco Products Tax Act of 1977, § 26-57-201 et seq., §§ 26-57-260 and 26-57-261, and §§ 26-57-1301 — 26-57-1307, affect the fiscal soundness of the state and the public health;
    2. The Attorney General and the Director of Arkansas Tobacco Control play an important role in the enforcement of the state's tobacco laws; and
    3. The sharing of documents and other information between the Secretary of the Department of Finance and Administration, the Attorney General, and the director will put the state in a better position to prevent tobacco diversion and prevent cigarettes from being sold to youth and an already addicted adult population.
  2. The Secretary of the Department of Finance and Administration may disclose documents and other information submitted by stamp deputies appointed under § 26-57-236 or those persons licensed or permitted under the terms of the Arkansas Tobacco Products Tax Act of 1977, § 26-57-201 et seq., to the Attorney General or the director upon the request of the Attorney General or the director.
  3. 1. The documents and other information provided under this subsection shall not be disclosed by the Attorney General or the director to a person other than a person specifically authorized by the Attorney General or the director to receive the documents or other information.
    2. However, the Attorney General and the director may share the documents and other information provided under this subsection with the taxing authorities or law enforcement agencies of Arkansas or another state or with any other entity permitted by the Attorney General to aggregate the documents and other information, if the parties agree to the confidentiality requirements under this subsection.
  4. 1. The Attorney General and the director may use the documents and other information provided under this subsection by the Secretary of the Department of Finance and Administration in proceedings before any court.
    2. 1. However, the documents and other information shall not be presented in court except with the approval of the court in which the action is pending and after adequate notice to the person who initially furnished the documents or other information to the Secretary of the Department of Finance and Administration.
      2. When confidential information is presented with court approval, the documents and other information and the related evidence shall be held in camera and shall be part of the court record or trial transcript only if under seal.
1. Any bond required by any state tax law shall be subject to the approval of the Secretary of the Department of Finance and Administration as to form, sufficiency, value, amount, stability, and other features necessary to provide a guarantee of payment of the tax due the state under this chapter.
2. Where a bond is required for the purpose of insuring any state tax law, and written notice of termination is required before the bond can be terminated, the party issuing the bond cannot be required to provide the written notice of termination more than sixty (60) days prior to the date the bond is to be terminated.
3. The length of time required for the notice of termination shall be calculated from the date of receipt of the notice of termination, rather than the date of mailing.
4. The term “bond” shall mean any bond, letter of credit, or assignment of a certificate of deposit.
1. 1. 1. In the administration of any state tax law, the Secretary of the Department of Finance and Administration, for the purpose of determining the accuracy of a return or fixing any liability under any state tax law, may make an examination or investigation of the place of business, the tangible personal property, equipment, and facilities, and the books, records, papers, vouchers, accounts, and documents of any taxpayer or other person.
    2. Every taxpayer or other person and his or her agents and employees shall exhibit to the secretary these places and items and facilitate any examination or investigation.
  2. 1. The secretary may employ proper and reasonable audit methods as he or she deems necessary, including the use of sampling.
    2. If sampling is to be employed as an audit method, the taxpayer's consent to the sampling technique must be obtained at the commencement of the audit.
2. No taxpayer shall be subjected to unnecessary examination or investigations, and only one (1) inspection of a taxpayer's books of account shall be made for each taxable year unless the taxpayer requests otherwise or unless the secretary, after investigation, notifies the taxpayer in writing that an additional inspection is necessary.
3. 1. When conducting an investigation or an audit of any taxpayer, the secretary may, in his or her discretion, examine the records and files of any person, except when privileged by law, any other business, institution, financial institution, the records of any state agency, agency of the United States Government, or agency of any other state when permitted by agreement or reciprocity.
  2. 1. The secretary may compel production of these records by summons.
    2. The summons may be served directly by the secretary.
4. In the administration of any state tax law, the secretary may:
  1. Administer oaths, conduct hearings, and compel by summons the attendance of witnesses, testimony, and the production of any books, records, papers, or other data of any person or taxpayer; or
  2. 1. Examine under oath any person regarding the business of any taxpayer concerning any matter incident to the administration of any state tax law.
    2. 1. The fees of witnesses required by the secretary to attend any hearing shall be the same as those allowed to the witnesses appearing before circuit courts of this state.
      2. The fees shall be paid in the manner provided for the payment of other expenses incident to the administration of any state tax law.
5. 1. The investigation may extend to any person that the secretary determines has access to information which may be relevant to the examination or investigation.
  2. When any summons requiring the production of records as described in subsection (c) of this section is served on a third-party recordkeeper, written notice of the summons shall be mailed to the taxpayer that his or her records are being summoned, at least fourteen (14) days prior to the date fixed in the summons as the day for the examination of the records.
  3. Notice to the taxpayer required by this section is sufficient if it is mailed by certified mail to the last address on record with the secretary.
6. When the secretary has the power to issue a summons for his or her own investigative or auditing purposes, then the secretary shall honor any reasonable request by any taxpayer to issue a summons on the taxpayer's behalf.
7. 1. The secretary or the taxpayer may apply to the circuit court of the county of the taxpayer's residence, place of business, or county where the summons can be served as with any other case at law for any order compelling the production of the summoned records.
  2. Failure to comply with the order of the court for the production of records may be punished by the court as for contempt.
8. 1. The cost of producing records of a third party required by a summons shall be borne by the taxpayer if he or she requests the summons to be issued.
  2. 1. If the secretary initiates the summons for third-party records, the secretary shall bear the reasonable cost of producing the records.
    2. The secretary may later assess the cost against any delinquent or deficient taxpayer as determined by the records.
9. 1. The secretary may examine the books, records, and other documents of transportation companies, agencies, firms, or persons that conduct business by truck, rail, water, airplane, or otherwise in order to determine any sales or use tax due on out-of-state purchases and to determine which dealers are importing or shipping articles of tangible personal property and are liable for any state tax.
  2. If the transportation company, agency, firm, or person refuses to allow an examination of its books, records, and other documents, the secretary may petition the appropriate circuit court to require the transportation company, agency, firm, or person to show cause as to why its books, records, and other documents should not be examined and why a bond should not be required in an amount not to exceed two thousand dollars ($2,000) for a period of not more than one (1) year to guarantee compliance with the provisions of this section.
  3. Refusal to permit the secretary to examine books, records, and other documents pursuant to this section is a Class C misdemeanor.
1. 1. Except as otherwise provided in this chapter, no assessment of any tax levied under the state tax law shall be made after the expiration of three (3) years from the date the return was required to be filed or the date the return was filed, whichever period expires later.
  2. The Secretary of the Department of Finance and Administration shall not begin court proceedings after the expiration of the three-year period unless there has been a previous assessment for the collection of the tax.
2. 1. Notwithstanding subsection (a) of this section, if the amount of taxable income or taxable estate for a taxpayer for a year, as returned to the United States Department of the Treasury, is changed and corrected by the Commissioner of Internal Revenue or an officer of the United States of competent authority, the taxpayer, within one hundred eighty (180) days from the receipt of the notice and demand for payment by the Internal Revenue Service, shall report to the Secretary of the Department of Finance and Administration the corrected federal tax, taxable income, or taxable estate for the taxable period covered by the change on an amended Arkansas income tax return.
  2. 1. If there is an additional state tax due from the taxpayer because of the correction by the Internal Revenue Service, the additional state tax resulting from the issues that are included in the correction shall be assessed by the Secretary of the Department of Finance and Administration within one (1) year from the filing of the amended Arkansas income tax return by the taxpayer.
    2. However, if a taxpayer fails to notify the Secretary of the Department of Finance and Administration of the correction as required by this subsection, no assessment of additional state tax due from the taxpayer because of the correction by the Internal Revenue Service shall be made by the Secretary of the Department of Finance and Administration after the expiration of three (3) years from the date the amended return was required to be filed.
    3. If the taxpayer appeals the assessment made by the Internal Revenue Service, the Secretary of the Department of Finance and Administration has three (3) years from the date of the final Internal Revenue Service assessment or date of payment of the federal assessment by the taxpayer, whichever of the two (2) periods expires later, in which to make an assessment.
  3. 1. Notwithstanding subsection (i) of this section, if the correction by the Internal Revenue Service results in an overpayment of state income tax for the taxable year for which the correction is made, the taxpayer may receive a refund of the overpaid income tax for that year resulting from the issues that are included in the correction upon the filing of the amended return within one hundred eighty (180) days from receipt of the notice from the Internal Revenue Service.
    2. A refund shall not be paid if the amended return is filed on or after the one hundred eighty-first day following receipt of the notice from the Internal Revenue Service unless the amended return is filed within three (3) years from the time the original return was filed or two (2) years from the time the income tax due on the original return was paid, whichever of the periods expires later.
  4. A change or correction to taxable income made by the Internal Revenue Service that results in additional state income tax due from the taxpayer does not entitle the Secretary of the Department of Finance and Administration to issue an assessment unless fewer than three (3) years have elapsed from the date the original return for the year not included in the notice was required to be filed or the date the original return was filed, whichever of the periods expires later, for:
    1. A tax year that is not included in the notice of change or correction; or
    2. An issue that is not included in the notice of change or correction.
  5. A change or correction to taxable income made by the Internal Revenue Service that results in a refund to the taxpayer does not entitle the taxpayer to receive a refund unless fewer than three (3) years have elapsed from the date the original return for the tax year not included in the notice was filed or fewer than two (2) years have elapsed from the time that income tax due on the original return was paid, whichever of the periods expires later, for:
    1. A tax year that is not included within the notice of change or correction; or
    2. An issue that is not included in the notice of change or correction.
3. Upon written agreement of the Secretary of the Department of Finance and Administration and the taxpayer, the time within which the Secretary of the Department of Finance and Administration may make a final assessment, as provided by § 26-18-401, may be extended to a date mutually agreed upon in the written agreement.
4. 1. When, before the expiration of the time prescribed for the assessment of the tax or of extensions of the time prescribed for the assessment of the tax consented to in writing, both the Secretary of the Department of Finance and Administration and the taxpayer have consented in writing to an assessment after that time, then the tax may be assessed at any time prior to the expiration of the time agreed upon.
  2. When the time to file a claim for a refund has not expired at the time the extension agreement is entered into, the agreement shall automatically extend the period in which a refund may be allowed or a claim for a refund may be filed to the final date agreed to in the agreement, plus sixty (60) days.
5. If a taxpayer understates a state tax due by an amount equal to or greater than twenty-five percent (25%) in any return or report or in the case of an income tax, if the taxpayer underreports net taxable income by twenty-five percent (25%) or more, the Secretary of the Department of Finance and Administration may assess the tax due or begin an action in court for the collection of the tax due at any time prior to the expiration of six (6) years after the return was required to be filed or the date the return was filed, whichever period expires later.
6. In the case of a fraudulent return or failure to file a report or return required under any state tax law, the Secretary of the Department of Finance and Administration may compute, determine, and assess the estimated amount of tax due from any information in his or her possession or may begin an action in court for the collection of the tax without assessment, at any time.
7. Whenever a taxpayer requests an extension of time for filing any return required by any state tax law, the limitation of time for assessing any tax shall be extended for a like period.
8. 1. Except as otherwise provided in this chapter, when the assessment of any tax imposed by any state law has been made within the period of limitation properly applicable to the assessment, the tax may be collected by levy or proceeding in court, but only if the levy is made or the proceeding is begun within ten (10) years after the date of the assessment of the tax.
  2. A bankruptcy filing by a taxpayer tolls the ten-year collection period stated in subdivision (h)(1) of this section until one hundred eighty (180) days after the termination of the taxpayer's bankruptcy case.
9. 1. 1. An amended return shall be filed by the taxpayer within three (3) years from the time the return was filed or two (2) years from the time the tax was paid, whichever of the periods expires later.
    2. The limitations periods stated in subdivision (i)(1)(A) of this section apply regardless of whether the amended return would reduce a taxpayer's tax liability, entitle the taxpayer to a refund of an overpayment of a state tax, amend the taxpayer's filing status, or amend the taxpayer's return for any other purpose.
    3. Subdivision (i)(1)(A) of this section does not apply:
      1. To a tax paid as a result of an audit or proposed assessment; or
      2. If the amount of taxable income or taxable estate for a taxpayer for a year, as returned to the United States Department of the Treasury, is changed and corrected by the Commissioner of Internal Revenue or an officer of the United States Government of competent authority.
        
        Subsection (b) of this section applies in circumstances described in subdivision (i)(1)(C)(ii)(a) of this section.
    4. 1. If a taxpayer is subject to an audit, then the taxpayer may file an amended return or verified claim for credit or refund of an overpayment of a state tax that occurred at any time during the time period for which the audit is performed.
      2. However, the total refund of overpayments for the extended audit period shall not be more than the total amount assessed for the extended audit period.
  2. Any taxpayer who fails to file a return, underreports his or her income by twenty-five percent (25%) or more, or fails to notify the Secretary of the Department of Finance and Administration of any change or correction by the Internal Revenue Service in the taxpayer's taxable income shall not be entitled to file an amended return or verified claim for credit or refund after the expiration of three (3) years from the date the original return or notification of change was originally due.
10. No person shall be prosecuted, tried, or punished for any of the various criminal offenses arising under the provisions of any state tax law unless the indictment of the person is instituted within six (6) years after the commission of the offense.
11. 1. In the case of an individual, the running of the periods specified for filing an amended return or verified claim for credit or refund shall be suspended during any period of the individual's life in which the individual is financially disabled.
  2. 1. An individual is financially disabled if the individual is unable to manage his or her financial affairs by reason of a medically determinable physical or mental impairment of the individual which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months.
    2. An individual shall not be considered to have a physical or mental impairment unless proof of the existence of the impairment is furnished in a form and in a manner as the Secretary of the Department of Finance and Administration may require.
  3. An individual shall not be treated as financially disabled during any period that the individual's spouse or any other person is authorized to act on behalf of the individual in financial matters.
12. 1. The limitation periods in subsection (i) of this section to file a claim for credit or refund of an overpayment of state tax do not apply to a taxpayer who is a veteran if the:
    1. Overpayment of state tax claimed resulted from the:
      1. Reduction of uniformed service retired pay computed under 10 U.S.C. § 1406 or 10 U.S.C. § 1407, as in effect on January 1, 2009; or
      2. Waiver of retired pay under 38 U.S.C. § 5305, as in effect on January 1, 2009; and
    2. Reduction of the uniformed service retired pay or waiver of retired pay provided in subdivision (l)(1)(A) of this section is the result of an award of compensation under a determination by the United States Secretary of Veterans Affairs that part or all of the payments to the taxpayer are payments made for a service-connected disability that are not included in gross income under 26 U.S.C. § 104, as in effect on January 1, 2009.
  2. An amended return or verified claim for credit or refund of an overpayment of state tax described in subdivision (l)(1) of this section shall be filed by the taxpayer within one (1) year of the date of the determination described in subdivision (l)(1)(B) of this section or February 25, 2009, whichever occurs later.
  3. A credit or refund for an overpayment of state tax shall not be allowed under this subsection for any tax year which began before January 1, 2001.
13. 1. Except in the case of deficiencies that are determined to be due to fraud, if the Secretary of the Department of Finance and Administration assesses a tax or begins an action in court for the collection of a tax under subsection (e) or subsection (f) of this section for a time period in excess of the time periods provided in subsection (a) of this section, the taxpayer may file a verified claim for a credit or refund of an overpayment of state tax for the additional time period open for assessment by the Secretary of the Department of Finance and Administration at any time before the time of collection of the assessment.
  2. However, the taxpayer shall not receive a credit or refund of any amount in excess of the assessment under this subsection.
  3. The taxpayer's ability to file a verified claim under this subsection is in addition to and not in limitation of the other provisions for filing claims in this section.
14. 1. Except as provided in subdivision (n)(2) of this section, an assessment to recover an erroneously paid refund shall not be made after the expiration of three (3) years from the date of the refund warrant.
  2. However, an assessment may be made at any time to recover an erroneously paid refund that was paid as a result of fraud or misrepresentation by the taxpayer.
1. 1. The Secretary of the Department of Finance and Administration shall give a taxpayer notice of any assessment, demand, decision, or hearing before the secretary which directly involves that taxpayer.
  2. 1. All notices required to be given by the secretary to a taxpayer shall be either served by personal service or sent by regular mail to the taxpayer's last address on record with the particular tax section of the Revenue Division of the Department of Finance and Administration in question.
    2. Service of the notice by mail is presumptively complete upon mailing, and the secretary may take any action permitted by any state tax law.
  3. All notices of final assessment under § 26-18-401 shall be sent by regular mail.
2. 1. When giving notice to the secretary, the taxpayer shall give notice either by mail or by personal service on the secretary.
  2. The notice the taxpayer gives shall be effective when postmarked or, in case of personal service, when so served.
3. By written agreement, the secretary and any taxpayer may provide for any other reasonable means of giving notice.
4. All notices shall be in writing.
1. The Secretary of the Department of Finance and Administration may accept payment of any state or local tax or fee by credit card when he or she determines that credit card payments are administratively feasible.
2. The secretary may enter into contracts with credit card companies and may pay fees normally charged by those companies for allowing the use of their credit cards as authorized by this section.
1. 1. The Secretary of the Department of Finance and Administration may promote the benefits of and encourage the use of electronic tax administration programs, as they become available, through the use of mass communications and other means.
  2. It is the policy of the Department of Finance and Administration that:
    1. Paperless filing should be the preferred and most convenient means of filing state tax and information returns; and
    2. The department should cooperate with and encourage the private sector by encouraging competition to increase electronic filing of such returns.
2. The secretary shall establish a plan to eliminate barriers, provide incentives, and use competitive market forces to increase electronic filing gradually over the next ten (10) years while maintaining existing processing times for paper returns.
1. The Secretary of the Department of Finance and Administration shall develop procedures for the acceptance of signatures on state tax returns or reports in digital or other electronic form.
2. Until such time as such procedures are in place, the secretary may:
  1. Waive the requirement of a signature for a particular type or class of return, declaration, statement, or other document required or permitted to be made in writing under state tax laws and rules; or
  2. Provide for alternative methods of signing or subscribing a particular type or class of return, declaration, statement, or other document required or permitted to be made in writing under state tax laws and rules.
1. When the state seeks to impose a tax under the terms of a state tax law, then the statute imposing the tax shall be strictly construed in limitation of the imposition of the tax.
2. When a taxpayer claims to be entitled to a tax exemption, deduction, or credit under the terms of a state tax law, then the statute providing the tax exemption, deduction, or credit shall be strictly construed in limitation of the exemption, deduction, or credit.
3. The burden of proof applied to matters of fact and evidence, whether placed on the taxpayer or the state, in controversies regarding the application of a state tax law shall be by preponderance of the evidence.
4. When the meaning of a state tax law is in controversy, the burden of establishing the proper construction of the statute shall be on the party claiming application of the tax or benefit of the tax exemption, deduction, or credit.
5. Words used in statutes imposing a tax and in statutes providing for a tax exemption, deduction, or credit shall be given their plain and ordinary meaning, not their narrowest possible meaning.
6. 1. Statutes imposing a tax and statutes providing a tax exemption, deduction, or credit shall be fairly and reasonably construed, taking into consideration the purpose and spirit of the tax, exemption, deduction, or credit and the public policy at the time the statute was passed.
  2. If after taking this section and other applicable rules of statutory construction into account, a well-founded doubt exists with respect to the meaning of a statute imposing a tax or providing a tax exemption, deduction, or credit, the rule of strict construction shall require that the doubt be resolved against the tax, exemption, deduction, or credit.
7. This section is remedial and procedural and shall apply to all actions on and after October 1, 2015.
1. 1. A written legal opinion issued by the Secretary of the Department of Finance and Administration on or after January 1, 2016, shall be posted on the Arkansas.gov website.
  2. Any identifying facts and information that the secretary determines to be confidential in nature concerning taxpayers or other individuals or entities shall be redacted from an opinion posted under this section.
  3. The secretary may post a synopsis that describes the subject matter, facts, and guidance provided in an opinion instead of posting the complete redacted opinion if a copy of the redacted opinion is made available upon request.
2. 1. A final determination of a hearing officer or the secretary issued under § 26-18-405 on or after January 1, 2016, shall be posted on the Arkansas.gov website.
  2. Any identifying facts and information that the secretary determines to be confidential in nature concerning taxpayers or other individuals or entities shall be redacted from a final determination posted under this section.
  3. The secretary may post a synopsis that fully describes the subject matter, facts, and conclusions reached by the hearing officer or secretary instead of posting the complete determination.
  4. An administrative appeal that is settled or withdrawn from consideration before a final determination is made shall not be posted under this section.
1. 1. The Secretary of the Department of Finance and Administration shall make the inquiries, determinations, and assessments of all state taxes, including interest, additions to taxes, and assessable penalties, imposed by all state tax laws.
  2. The proposed assessment shall be made by recording the liability of the taxpayer in the office of the secretary in accordance with rules prescribed by the secretary.
  3. Upon request of the taxpayer, the secretary shall furnish the taxpayer a copy of the record of the assessment.
2. 1. The secretary shall collect all taxes imposed by any state tax law.
  2. 1. 1. The secretary shall issue a final assessment to each taxpayer liable for the unpaid tax.
      2. The final assessment shall state the amount of the assessment and demand payment within ten (10) days of the assessment.
      3. The final assessment shall not be issued before the expiration of time for the taxpayer to request an administrative hearing under § 26-18-404.
    2. If the taxpayer has requested administrative relief under § 26-18-404 the final assessment shall be issued according to § 26-18-405.
    3. 1. If the taxpayer has paid the assessment before the time for the issuance of the final assessment, no final assessment shall be issued.
      2. The taxpayer may seek to recover the payment of the assessment only if § 26-18-403 or § 26-18-406 applies.
  3. Upon receipt of the final assessment from the secretary, the person liable for the tax shall pay the stated amount including any interest, additions to tax, and assessable penalties at the place and time stated in the final assessment.
1. Regardless of the date on which a return or payment is due or a taxable period of a taxpayer closes, the Secretary of the Department of Finance and Administration shall declare the taxable period of any state tax terminated for that person and shall issue a jeopardy assessment and assess the tax from any information in his or her possession, notify the taxpayer, and demand immediate payment if the secretary believes that:
  1. The tax liability of any person who has a bond on file with the secretary to indemnify the state for the payment of any state tax is in excess of the amount of the bond;
  2. A taxpayer intends to depart from the state, to remove his or her property therefrom, or to conceal himself or herself or any of his or her property therein;
  3. A taxpayer intends to discontinue business without making adequate provisions for payment of all state tax; or
  4. A taxpayer intends to do any other act tending to prejudice, jeopardize, or render wholly or partially ineffectual proceedings to compute, assess, or collect any state tax.
2. 1. Within five (5) days after the date on which a notice and demand for payment is made under subsection (a) of this section, the secretary shall provide the taxpayer with a written statement of the information upon which the secretary relies in making such assessment.
  2. If the taxpayer fails or refuses to pay the tax upon demand of the secretary or requests a hearing before the secretary within five (5) business days after the day the taxpayer is furnished the written statement described in subdivision (b)(1) of this section, the tax shall become delinquent and the secretary shall proceed to issue a certificate of indebtedness.
3. When the taxpayer requests a hearing, the secretary shall hold the hearing within five (5) business days of receipt of the request. After a hearing, the secretary shall determine whether the making of the assessment under subsection (a) of this section is reasonable under the circumstances and shall render his or her decision. The taxpayer has three (3) days after the receipt of the secretary's decision either to pay the tax and applicable penalty and interest due or to protest the decision of the secretary as provided by § 26-18-406(a) prior to the secretary's issuing a certificate of indebtedness.
4. Whenever the secretary issues a jeopardy assessment, he or she shall have the burden of proving the reasonableness of the assessment.
1. 1. If any taxpayer fails to file any return as required by any state tax law, the Secretary of the Department of Finance and Administration from any information in his or her possession or obtainable by him or her, may determine the correct amount of tax for the taxable period. If a return has been filed, the secretary shall examine the return and make any audit or investigation that he or she considers necessary.
  2. 1. When a return has not been filed and the secretary determines that there is a tax due for the taxable period or when a return has been filed and the secretary determines that the tax disclosed by the return is less than the tax disclosed by his or her examination, the secretary shall propose the assessment of additional tax plus penalties, as the case may be, and shall give notice of the proposed assessment to the taxpayer.
    2. The notice required under subdivision (a)(2)(A) of this section shall:
      1. Explain the basis for the proposed assessment;
      2. State that a final assessment, as provided by § 26-18-401, will be made if the taxpayer does not protest the proposed assessment as provided by § 26-18-404.
        
        The taxpayer does not have to protest the proposed assessment to later be entitled to exercise the right to seek a judicial review of the assessment under § 26-18-406; and
      3. Provide contact information for the taxpayer to use if the taxpayer wants to obtain his or her tax records, including without limitation the facts and evidence supporting the proposed assessment, from the Department of Finance and Administration.
2. Any demand for additional payment of a state tax which is made as the result of a verification of a mathematical error on the return shall not be deemed to be a proposed assessment under the provisions of this section and shall not be subject to the hearing or appeal provisions of this chapter.
3. 1. An erroneously paid refund is a tax deficiency and is subject to assessment under this section.
  2. 1. When an erroneously paid refund is issued to a taxpayer, the secretary shall issue a notice of proposed assessment for the amount of the erroneously paid refund, plus interest and any penalty authorized under this chapter.
    2. The notice of proposed assessment to recover an erroneously paid refund shall explain the basis for the proposed assessment and shall inform the taxpayer that a final assessment under § 26-18-401 shall be made if the taxpayer fails to protest the assessment under § 26-18-404.
  3. Sections 26-18-404 — 26-18-406 and 26-18-701 apply to assessments of erroneously paid refunds.
  4. Interest and penalties imposed on a tax deficiency are subject to waiver or abatement in accordance with the procedure established in § 26-18-705(b) if the tax deficiency arose from an error by the department that resulted in the issuance of an erroneously paid refund.
1. Any taxpayer who wishes to seek administrative relief from any proposed assessment of taxes or from a denial of a claim for refund by the Secretary of the Department of Finance and Administration shall follow the procedure provided by this section.
2. 1. A taxpayer may at his or her option either request the secretary to consider his or her request for relief solely upon written documents furnished by the taxpayer or upon the written documents and any evidence produced by the taxpayer at a hearing.
  2. A taxpayer who requests the secretary to render his or her decision based on written documents is not entitled by law to any other administrative hearing prior to the secretary's rendering of his or her decision and, if necessary, the issuing of a final assessment and demand for payment or issuing of a certificate of indebtedness.
3. 1. Within sixty (60) days after service of notice of the proposed assessment or denial of a claim for refund, the taxpayer may file with the secretary a written protest under oath, signed by the taxpayer or the taxpayer's authorized agent, setting forth the taxpayer's reasons for opposing the proposed assessment or the denial of a claim for refund.
  2. No administrative relief will be available to a taxpayer who fails to protest or to a taxpayer who fails to request an extension of time to protest a proposed assessment of tax or denial of a claim for refund within the sixty (60) days following the service of notice of the proposed assessment or denial of a claim for refund.
4. The secretary may, in his or her discretion, extend the time for filing a protest for any period of time not to exceed an additional ninety-day period.
1. 1. The Secretary of the Department of Finance and Administration shall appoint a hearing officer to review all written protests submitted by taxpayers, hold all hearings, and make written findings as to the applicability of the proposed assessment or the denial of the claim for refund.
  2. Decisions of the hearing officer shall be final unless revised by the secretary.
  3. The hearings on written and oral protests and determinations made by the hearing officer shall not be subject to the provisions of the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
2. The secretary may appoint one (1) or more hearing officers, but the persons occupying these appointments shall not contemporaneously with the holding of these appointments have any other administrative duties within the Revenue Division of the Department of Finance and Administration.
3. The actual hearing on the written protest shall be held in any city in which the Revenue Division of the Department of Finance and Administration maintains a field audit district office or in such other city as the secretary shall, in his or her discretion, designate.
4. 1. 1. All written protests filed with the secretary shall be delivered promptly to the hearing officer.
    2. The hearing officer shall set the time and place for the hearing on a written protest and shall give the taxpayer reasonable notice of the hearing.
    3. If it is not possible for the hearing officer to hold a hearing and issue a decision on a protest of a proposed assessment within one hundred eighty (180) days after the taxpayer files a written protest for reasons that the hearing officer determines are beyond the taxpayer's control, the secretary shall waive the interest for the period from the time the written protest is filed until the final assessment is issued.
  2. At the hearing, the taxpayer may be represented by an authorized representative and may present evidence in support of his or her position.
  3. After the hearing, the hearing officer shall render his or her decision in writing and shall serve copies upon both the taxpayer and the section or division of the Department of Finance and Administration which proposed the assessment or the denial of the claim for refund.
  4. 1. 1. If the proposed assessment or denial of a claim for refund is sustained, in whole or part, the taxpayer or legal counsel for the secretary may request in writing, within twenty (20) days of the mailing of the decision, that the secretary revise the decision of the hearing officer.
      2. No request for revision will be considered unless it is received by the secretary within twenty (20) days of the mailing of the hearing decision.
      3. Either the taxpayer or legal counsel for the secretary shall provide a copy of any written request for revision to the other.
      4. The secretary may hold the supplemental proceedings on any request for revision and shall issue a decision on the request within sixty (60) days of the receipt of the request for revision.
    2. If the secretary refuses to make a revision or if the taxpayer or legal counsel for the secretary does not make a request for revision, then the secretary shall send either:
      1. A final assessment to the taxpayer, as provided by § 26-18-401, that is made upon the final determination of the hearing officer that sustained a proposed assessment of tax; or
      2. A notice in writing to both the taxpayer and legal counsel for the secretary, if a revision was requested, of his or her decision not to revise a decision that resulted in no tax due, including the denial of a claim for refund.
    3. 1. If the secretary revises the decision of the hearing officer, the secretary shall send the final decision of the secretary to the taxpayer and to the legal counsel for the secretary.
      2. A notice of final assessment shall be made upon the decision of the secretary if the secretary's decision sustained a proposed assessment of tax.
      3. No further notice will be issued for a final decision of the secretary that results in no tax due, including the denial of a claim for refund.
    4. A taxpayer may not request revision of a decision issued by the secretary under this subdivision (d)(4).
5. A taxpayer may seek relief from the final decision of the hearing officer or the secretary on a final assessment of a tax deficiency or a notice of denial of a claim for refund by following the procedure set forth in § 26-18-406.
6. 1. In addition to the hearing procedures set out in subsections (a)-(e) of this section, the secretary may hold administrative hearings by telephone, video conference, or other electronic means if the secretary determines that conducting the hearing in such a manner:
    1. Is in the best interest of the taxpayer and the department;
    2. Provides the same level of legal protection as provided in an in-person hearing or a hearing on written documents, including without limitation adequate due process;
    3. Is not unduly expensive for the taxpayer or the department; and
    4. Adequately protects the confidentiality of the taxpayer's information.
  2. The secretary may contract with third parties for all services necessary to conduct hearings by telephone, video, or other electronic means.
  3. Any person who enters into a contract with the secretary to provide services necessary to conduct hearings by telephone, video, or other electronic means shall be subject to the requirements of this chapter providing for the confidentiality of all taxpayer records.
1. After the issuance and service on the taxpayer of the final assessment of a deficiency in tax that is not protested by the taxpayer under § 26-18-403 or a final determination of the hearing officer or the Secretary of the Department of Finance and Administration under § 26-18-405, a taxpayer may seek judicial relief from the final assessment or determination by:
  1. 1. Filing suit for judicial relief from the final assessment or determination within one hundred eighty (180) days of the date of the final assessment or determination.
    2. A taxpayer filing suit under this subdivision (a)(1) shall not be required to pay the state tax, penalties, and interest due before filing suit;
  2. Paying the entire amount of state tax due within one (1) year of the date of the final assessment or determination and filing suit to recover that amount within one (1) year of the date of payment; or
  3. Filing suit to recover assessed tax, penalty, and interest paid prior to the time for issuance of the final assessment within one (1) year of the date of the final determination of the hearing officer or the secretary under § 26-18-405.
2. A taxpayer may seek judicial relief from a final determination denying a claim for refund by filing suit to recover the amount claimed within one (1) year from the mailing of the denial of the secretary under § 26-18-507, or a final determination of the hearing officer or the secretary under § 26-18-405, whichever is later.
3. 1. Jurisdiction for a suit to contest a final assessment or determination of the secretary under this section shall be in the Pulaski County Circuit Court or the circuit court of the county in which the taxpayer resides or has his or her principal place of business, where the matter shall be tried de novo.
  2. An appeal will lie from the circuit court to the Supreme Court, as in other cases provided by law.
  3. A presumption of correctness or weight of authority shall not attach to a final assessment or determination of the secretary in a trial de novo or an appeal under this section.
4. 1. The methods provided in this section shall be the sole alternative methods for seeking relief from a written decision of the secretary establishing a deficiency in tax or disallowing a claim for refund.
  2. An injunction shall not issue to stay proceedings for assessment or collection of taxes levied under state tax law.
5. 1. In a court proceeding under this section, the:
    1. Prevailing party may be awarded a judgment for court costs; and
    2. Taxpayer may be awarded reasonable attorney's fees if the:
      1. Secretary revised a decision of the hearing officer in favor of the taxpayer under § 26-18-405;
      2. Taxpayer is the prevailing party in an action for judicial relief from the determination of the secretary under this section; and
      3. Court finds that the secretary's revision was without a reasonable basis in law and fact.
  2. A judgment of court costs entered by the court in favor of either party or of attorney's fees awarded in favor of the taxpayer shall be treated, for purposes of this chapter, in the same manner as an overpayment or deficiency of tax, except that interest or penalty shall not be allowed or assessed with respect to a judgment for court costs or attorney's fees.
6. If a taxpayer pays the tax, penalty, and interest assessed under § 26-18-403 and does not request administrative relief according to § 26-18-404, then:
  1. The taxpayer may seek judicial relief from the assessment only if the taxpayer files suit in circuit court within one (1) year from the date of payment of the assessment; and
  2. The provisions of § 26-18-507 shall not apply to the payments.
7. The Arkansas Rules of Civil Procedure and § 16-56-126 concerning nonsuit and commencement of new actions apply to appeals under this section.
1. The liability for the payment of taxes imposed under any state tax law is on the taxpayer or person as identified by the particular state tax law.
2. Any person required to collect, truthfully account for, and pay over any state tax who willfully fails to collect the tax, or truthfully account and pay over the tax, or willfully attempts in any manner to evade or defeat any tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over.
3. As used in this section, “person” includes an officer, director, or employee of a corporation, a partner or employee of a partnership, or a member, manager, or employee of a limited liability company, who, as an officer, director, employee, partner, member, or manager is under a duty to perform the act in respect to which the violation occurs.
4. This section shall not apply to the payment of corporate income taxes.
1. The liability, at law or in equity, of the transferee of property of any person liable for any tax imposed by a law of the State of Arkansas shall be the same as that of the transferor and may be assessed and collected from the transferee in the same manner and subject to the same provisions as the transferor.
2. The period of limitation for assessment of any liability of a transferee or a fiduciary shall be within one (1) year after the expiration of the period of limitation for assessment against the transferor.
3. As used in this section, unless the context otherwise requires, “transferee” includes the donee, heir, legatee, devisee, and distributee and, with respect to estate tax, also includes any person who is personally liable for any part of the tax.
1. When a return of tax is required to be filed, the person required to make the return shall, without assessment or notice and demand from the Secretary of the Department of Finance and Administration, pay the tax to the secretary at the time and place fixed for filing the return, determined without regard to any extension of time for filing the return.
2. All remittances required to be paid under any state tax law shall be made payable to the Department of Finance and Administration by bank draft, check, cashier's check, money order, or money. The secretary shall issue a receipt, if requested, to the taxpayer for every cash payment. No remittance, other than cash, is a final discharge of liability due the secretary until it has been paid in cash.
1. No final account of any fiduciary shall be allowed by a probate division of circuit court of the state unless the account shows, and the probate division of circuit court finds, that all taxes imposed by any state tax law which are due have been paid and that all taxes which may become due are secured by bond, security deposit, or otherwise. To the extent that a tax certificate of the Secretary of the Department of Finance and Administration shows payment, it shall be conclusive.
2. For the purpose of facilitating the settlement and distribution of the estates held by fiduciaries, the secretary may agree upon the amount of taxes due, or to become due, from the fiduciaries under the provisions of any state tax law, and payment in accordance with the agreement shall be in full satisfaction of all taxes to which the agreement relates.
1. 1. Upon written request and for good cause, the Secretary of the Department of Finance and Administration may grant a reasonable extension of time to file any return required under any state tax law.
  2. The secretary shall keep a record of every extension granted with the reason the extension was granted.
  3. Except for a corporation income tax return as provided in § 26-51-807(c), the time for filing any return shall not be extended more than one hundred eighty (180) days.
  4. The secretary may promulgate rules to grant automatic extensions of time to file income tax returns and information returns without the taxpayer being required to submit a written application for the extension of time to file.
2. When an extension of time to file is granted, the taxpayer may file a tentative return on or before the original due date showing the estimated amount of tax due for the period covered by the return and may pay the estimated tax or the first installment at the same time.
3. 1. No interest shall be accrued or assessed against any sums paid on or before the original due date.
  2. Any state tax not paid when due because the secretary granted an extension of time for payment shall bear interest at the rate of ten percent (10%) per annum from the date originally due until paid.
4. 1. For purposes of granting an extension of time for filing a return under this section, “good cause” includes, but is not limited to:
    1. An instance in which the taxpayer is determined for federal tax purposes to be affected by a presidentially declared disaster under the provisions of 26 U.S.C. § 7508A, as in effect on January 1, 1999; and
    2. An instance in which the taxpayer is determined to be affected by a disaster emergency as declared by the Governor under § 12-75-107.
  2. In the event that an extension of time for filing a return is granted to a taxpayer affected by a presidentially declared disaster or a disaster emergency declared by the Governor, no interest or penalty shall accrue for the extension period granted by the secretary.
1. It is the duty of every taxpayer required to make a return of any tax due under any state tax law to keep and preserve suitable records as are necessary to determine the amount of tax due or to prove the accuracy of any return.
2. Unless otherwise provided by law, the taxpayer is required to keep and maintain all records within the State of Arkansas and for at least six (6) years after a return was filed. These records are subject to examination by the Secretary of the Department of Finance and Administration at any reasonable time.
3. When the records required by this section are kept outside the State of Arkansas in the usual course of business, they shall be produced within the state within fifteen (15) days after receipt of demand by the secretary. If the taxpayer determines it is impractical, then the taxpayer may request, and the secretary may grant, permission to have the records audited wherever they may be.
4. When a taxpayer fails to preserve and maintain the records required by any state tax law, the secretary may, in his or her discretion, make an estimated assessment based upon information available to him or her as to the amount of tax due by the taxpayer. The burden of proof of refuting this estimated assessment is upon the taxpayer.
1. 1. Any taxpayer who has paid any state tax to the State of Arkansas in excess of the state taxes lawfully due, subject to the requirements of this chapter, shall be refunded the overpayment of the state tax determined by the Secretary of the Department of Finance and Administration to be erroneously paid upon the filing of an amended return or a verified claim for refund, subject to subsection (e) of this section.
  2. This subsection does not include an action based on Arkansas Constitution, Article 16, § 13.
2. The claim shall specify:
  1. The name of the taxpayer;
  2. The time when and the period for which the state tax was paid;
  3. The nature and kind of state tax paid;
  4. The amount of the state tax that the taxpayer claimed was erroneously paid;
  5. The grounds upon which a refund is claimed; and
  6. Any other information relative to the payment as may be prescribed by the secretary.
3. The secretary shall determine what amount of refund, if any, is due as soon as practicable after a claim has been filed, but in no event shall the taxpayer be entitled to file a suit for refund under § 26-18-406 until at least six (6) months have elapsed from the date of the filing of the claim for refund or the secretary has issued a notice of denial of a claim for refund.
4. Notwithstanding any provisions of the law to the contrary, a taxpayer who acts only as an agent of the state in the collection of any state tax shall be entitled to claim a credit or refund of the state tax only if the taxpayer establishes that he or she has:
  1. Borne the state tax in question;
  2. Repaid the amount of the state tax to the person from whom he or she collected it; or
  3. Obtained the consent of the person to the allowance of the credit or refund.
5. 1. 1. The secretary shall make a written determination and give notice to the taxpayer concerning whether or not a refund is due.
    2. 1. If a refund is due, the secretary shall certify that the claim is to be paid to the taxpayer as provided by law or credited against state taxes due or to become due.
      2. If the secretary determines that the taxpayer entitled to the refund has an outstanding state tax delinquency for which a certificate of indebtedness has been filed, the secretary shall apply the refund due as payment against the outstanding state tax delinquency. If the amount of the state tax refund exceeds the amount of the outstanding state tax delinquency, the excess amount shall be paid to the taxpayer in accordance with subdivision (e)(1)(B)(i) of this section.
        
        The secretary shall notify each taxpayer in writing whose refund results from the filing of a joint return that the joint refund will be applied against the outstanding state tax delinquency.
        
        A taxpayer who claims that only the taxpayer's spouse owes the delinquent state tax debt may seek administrative relief by filing a written protest under oath within thirty (30) days after the notice under subdivision (e)(1)(B)(ii)(b) is received that includes information regarding why the taxpayer does not owe the delinquent state tax debt and either requests a hearing in person or based upon the information submitted with the protest.
        
        A hearing on a written protest made under this subdivision (e)(1)(B)(ii) and any judicial relief requested following the administrative hearing process shall be provided in accordance with the applicable provisions of §§ 26-18-405 and 26-18-406.
  2. 1. If the secretary's determination is to disallow the claim for refund, in whole or in part, then the secretary shall immediately issue a written decision giving notice to the taxpayer of the denial of the claim for refund.
    2. The taxpayer may seek administrative review and relief from the secretary's decision to deny a claim for refund by protesting as provided in §§ 26-18-404 and 26-18-405.
  3. The taxpayer may seek judicial relief under the provisions of § 26-18-406 from:
    1. A notice of a denial of a claim for refund issued by the secretary; or
    2. The secretary's failure to issue a written decision after the claim for refund has been filed for six (6) months.
6. 1. This section shall not apply to state taxes paid as a result of an audit or proposed assessment.
  2. State taxes paid as a result of an audit or proposed assessment may not be recovered unless § 26-18-406 applies.
1. 1. The Secretary of the Department of Finance and Administration may cancel or refuse to issue, extend, or reinstate a license, permit, or registration under any state tax law to any person or taxpayer who has within the last three (3) years failed to comply with a state law concerning the timely reporting and payment of a state tax administered by the secretary or failed to observe or fulfill the conditions upon which the license or permit was issued.
  2. A failure to pay assessed interest and penalties on a delinquent state tax is grounds for a decision to cancel or refuse to issue, extend, or reinstate a license, permit, or registration under this subsection.
2. 1. When the secretary determines, in his or her sole discretion, that an emergency situation exists and that the public welfare and safety are endangered, he or she may issue an order temporarily suspending a license, permit, or registration pending a hearing before him or her on the subject of the cancellation of the license, permit, or registration.
  2. The secretary shall give notice of the temporary suspension at the same time that he or she gives notice of his or her intention to cancel or to refuse to issue, extend, or reinstate any license, permit, or duplicate copy thereof, as provided by this section.
  3. The secretary shall as soon as practicable, but in any event within three (3) days after the request of the taxpayer, hold a hearing on whether the temporary suspension should be made permanent.
  4. The temporary suspension shall be made permanent without a hearing unless the taxpayer requests a hearing within twenty (20) days of receipt of notice of the temporary suspension.
3. Except as set out in subsection (b) of this section, before the secretary may cancel or refuse to issue, extend, or reinstate any license, permit, or registration, he or she shall give notice of his or her proposed action, and the owner or applicant shall have twenty (20) days after receipt of the secretary's decision to request a hearing.
4. 1. When a license, permit, or registration is cancelled by the secretary, all accrued fees, taxes, and penalties, even though not due and payable at the time of cancellation under the state tax law imposing and levying the tax, shall become due concurrently with the cancellation of the license, permit, or registration.
  2. The licensee or permittee shall within five (5) business days of cancellation make a report to the secretary covering the period not previously covered by reports filed by that person and ending with the date of the cancellation and shall pay all accrued fees, taxes, and penalties at the time the report is made.
  3. Violation of this subsection is a Class C misdemeanor.
5. 1. The affected taxpayer may seek relief from the decision of the secretary cancelling a license, permit, or registration by requesting a hearing, pursuant to subsections (b) and (c) of this section, by filing a written protest of the action with the hearing officer appointed by the secretary, pursuant to § 26-18-405, and the hearing officer shall hold all hearings requested pursuant to this section.
  2. The hearing officer shall issue a written decision on all hearings which shall be final unless revised by the secretary.
  3. The hearings and determinations of the hearing officer shall not be subject to the provisions of the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
  4. 1. A taxpayer may request a revision by the secretary of the hearing officer's determination which is adverse to him or her within twenty (20) days of the date of the mailing of the hearing officer's decision.
    2. If the secretary refuses to make a revision, or if the taxpayer does not request a revision, then the affected taxpayer may seek relief from the hearing officer's decision or the final revision determination by the secretary by following the method provided in § 26-18-602.
6. Violations of this section shall be punished as provided in § 26-18-206. The secretary may seek to enjoin any violation of any state tax law the secretary is charged to enforce.
1. 1. The affected taxpayer may seek relief from the decision of the Secretary of the Department of Finance and Administration, rendered after a hearing, cancelling a license, permit, or registration.
  2. The taxpayer's petition seeking an order to stay the effect of the secretary's decision shall be filed within thirty (30) days after receipt of notice of that decision by the taxpayer with the Pulaski County Circuit Court or the circuit court of the county in which the taxpayer resides or has his or her principal place of business, where the matter shall be tried de novo.
2. 1. Relief from the decision of the secretary cancelling a license, permit, or registration may be taken only as provided in this section.
  2. 1. To stay the effect of the secretary's decision, the person or taxpayer shall file a bond not to exceed twenty-five thousand dollars ($25,000) with and in an amount fixed by the secretary, payable to the State of Arkansas.
    2. The bond shall be conditioned upon:
      1. The faithful and diligent prosecution of the appeal by the taxpayer to a final determination; and
      2. The immediate compliance of the taxpayer with the secretary's decision if the secretary's decision is not enjoined by the circuit court or upon appeal is upheld by the Supreme Court.
  3. The secretary may, in his or her discretion, refuse to stay the effect of his or her decision and permit a bond to be posted when he or she determines in his or her sole discretion that the public safety and welfare would be endangered by the stay.
3. The venue for all actions seeking relief from a decision of the secretary concerning the cancellation of or refusal of the issuance of a license or permit shall be the Pulaski County Circuit Court or the circuit court of the county in which the taxpayer resides or has his or her principal place of business.
1. 1. 1. 1. If a taxpayer does not timely and properly pursue his or her remedies seeking relief from a decision of the Secretary of the Department of Finance and Administration and a final assessment is made against the taxpayer, or if the taxpayer fails to pay the deficiency assessed upon notice and demand, then the secretary shall, as soon as practicable thereafter, issue to the circuit clerk of any county of the state a certificate of indebtedness certifying that the person named in the certificate of indebtedness is indebted to the state for the amount of the tax established by the secretary as due.
      2. The secretary may publish an electronic copy of a certificate of indebtedness issued under subdivision (a)(1)(A)(i) of this section on the official website maintained by the secretary.
        
        The secretary shall remove an electronic copy of a certificate of indebtedness published under subdivision (a)(1)(A)(ii)(a) of this section upon:
        
        Satisfaction of the underlying indebtedness that is the subject of the certificate of indebtedness; and
        
        The issuance of a release of the certificate of indebtedness on the records of the circuit clerk.
    2. 1. If a taxpayer has a delinquent tax liability to the State of Arkansas of less than one thousand dollars ($1,000), the secretary may enter into an agreement with the taxpayer to allow the taxpayer to pay the delinquency in installments.
      2. The secretary may choose not to issue a certificate of indebtedness during the period of the installment agreement if he or she determines that it is in the best interest of the state.
    3. 1. If a taxpayer has a total delinquent individual income tax liability to the State of Arkansas of less than two thousand dollars ($2,000), the secretary may enter into an agreement with the taxpayer to allow the taxpayer to pay the delinquency in installments if:
        
        The installment agreement is for a period of twelve (12) months or less; and
        
        The installments are to be paid electronically.
      2. The secretary may choose not to issue a certificate of indebtedness during the period of the installment agreement if he or she determines that the issuance of a certificate of indebtedness is not in the best interest of the state.
  2. The circuit clerk shall enter immediately upon the circuit court judgment docket:
    1. The name of the delinquent taxpayer;
    2. The amount certified as being due;
    3. The name of the tax; and
    4. The date of entry upon the judgment docket.
  3. 1. 1. The entry of the certificate of indebtedness shall have the same force and effect as the entry of a judgment rendered by the circuit court.
      2. This entry shall constitute the state's lien upon the title of any real and personal property of the taxpayer in the county where the certificate of indebtedness is recorded.
    2. This lien is:
      1. In addition to any other lien existing in favor of the state to secure payment of taxes, applicable interest, penalties, and costs, including any costs the circuit clerk is entitled to receive as provided by law for either the filing or the release of this lien; and
      2. Superior to:
        
        Other liens of any type or character attaching to the property after the date of entry of the certificate of indebtedness on the judgment docket; and
        
        All claims of unsecured creditors.
    3. 1. The certificate of indebtedness authorized by this subsection shall continue in force for ten (10) years from the date of recording and shall automatically expire after the ten-year period has run.
        
        An action on the lien on the certificate of indebtedness shall be commenced within ten (10) years after the date of recording of the certificate, and not afterward.
        
        The secretary shall not be required to file a release on a lien which has expired, and the provisions of § 26-18-808 dealing with failure to release liens are not applicable to this section.
        
        The provisions of this subsection are applicable to both liens already on file and all future filings of liens.
      2. A bankruptcy filing by a taxpayer tolls the ten-year period for certificates of indebtedness under subdivision (a)(3)(C)(i) of this section until one hundred eighty (180) days after the termination of the taxpayer's bankruptcy case.
      3. The secretary may file another lien to secure a tax delinquency if:
        
        The secretary is required to release an inadvertently filed lien because the filing of a bankruptcy case has stayed collection activity; and
        
        There is no subsequent discharge of the tax delinquency.
  4. The lien authorized by this section arises at the time the secretary makes the assessment and continues until the taxpayer satisfies the assessment or the lien becomes unenforceable by operation of law.
2. 1. After entry of the certificate of indebtedness, the circuit clerk shall issue a writ of execution directed to the secretary, authorizing the secretary to levy upon and against all real and personal property of the taxpayer.
  2. The secretary shall have all remedies and may take all proceedings for the collection of the tax which may be taken for the recovery of a judgment at law.
  3. The writ of execution shall be issued, served, and executed in the same manner as provided for in the issuance and service of executions rendered by the circuit courts of this state, except the secretary shall act in the place of the county sheriffs.
  4. The secretary shall have this authority for all liens either presently filed or filed after the passage of this act.
3. 1. Nothing in this chapter shall preclude the secretary from resorting to any other means provided by law for collecting delinquent taxes.
  2. The issuance of a certificate of indebtedness, entry by the circuit clerk, and levy of execution as provided in this section shall not constitute an election of remedies with respect to the collection of the tax.
  3. The taxes, interest, penalties, and fees, including any costs the circuit clerk is entitled to receive as provided by law in these matters, imposed or levied by any state tax law, when due, may be collected in the same way as a personal debt of the taxpayer.
  4. In the name of the state, the secretary may sue to the same effect and extent as for the enforcement of a right of action for debt.
  5. All provisional remedies available in these actions are available to the State of Arkansas in the enforcement of the payment of any state tax.
4. 1. 1. In addition to the remedies provided in subsections (b) and (c) of this section, the secretary may direct the circuit clerk to issue a writ of execution directed to the county sheriff of any county authorizing the county sheriff to levy upon and against all real and personal property of the taxpayer.
    2. The writ of execution shall be issued, served, and executed in the same manner as provided for in the issuance and service of executions rendered by the circuit courts of this state.
  2. 1. The circuit clerk and county sheriff shall be entitled to receive the same fees provided by law in these matters.
    2. These fees shall be collected from the taxpayer by either the secretary or the county sheriff in addition to the tax, penalties, and interest included in the certificate of indebtedness.
    3. If the county sheriff is unable after diligent effort to collect the tax, interest, penalties, and costs, the secretary may pay such fees as are properly shown to be due to the circuit clerk and county sheriff.
5. The secretary may contract with persons inside or outside the state to help the secretary collect delinquencies of resident or nonresident taxpayers.
1. When a return required under any state tax law has not been filed or does not furnish all the information required by the Secretary of the Department of Finance and Administration or when the taxes imposed by any state tax law have not been paid or when any required license or permit has not been secured, the secretary, in the name of the State of Arkansas, may institute any necessary action or proceeding in the Pulaski County Circuit Court to enjoin the person or taxpayer from continuing operations until the report or return has been filed, required licenses or permits secured, or taxes paid as required.
2. The injunction shall be issued without a bond being required from the state.
1. The Secretary of the Department of Finance and Administration may enter into an agreement to compound, settle, or compromise any controversy relating to a state tax or any admitted or established tax liability as to any tax collectible under any state law when:
  1. The controversy is over the amount of tax due; or
  2. The inability to pay results from the insolvency of the taxpayer.
2. The secretary may waive or remit the interest or penalty, or any portion of the interest or penalty, ordinarily accruing because of a taxpayer's failure to pay a state tax within the statutory period allowed for its payment:
  1. If the taxpayer's failure to pay the tax is satisfactorily explained to the secretary;
  2. If the failure results from a mistake by the taxpayer of either the law or the facts subjecting him or her to such tax; or
  3. If the inability to pay the interest or penalty results from the insolvency or bankruptcy of the taxpayer.
3. 1. In settling or compromising any controversy relating to the liability of a person for any state tax for any taxable period, the secretary may enter into a written closing agreement concerning the liability.
  2. When the closing agreement is signed by the secretary, it shall be final and conclusive, and except upon a showing of fraud or misrepresentation of a material fact, no additional assessment or collection shall be made by the secretary, and the taxpayer shall not institute any judicial proceeding to recover such liabilities as agreed to in the closing agreement.
4. The secretary shall promulgate rules establishing guidelines for determining whether a proposed offer in compromise is adequate and is acceptable to resolve a tax dispute.
1. Upon written application by any person, the Secretary of the Department of Finance and Administration may release affected property from the lien imposed by any assessment, order, judgment, or certificate of indebtedness obtained by or from any levy made by the secretary if:
  1. Either full payment is made to the secretary of the sum he or she considers adequate consideration for the release, including any costs the circuit clerk is entitled to receive as provided by law in these matters; or
  2. Adequate security deposit is made with the secretary to secure the payment of the debt evidenced by the lien, including any costs the circuit clerk is entitled to receive as provided by law in these matters.
2. When the secretary determines that his or her assessment, certificate of indebtedness, or judgment is clouding the title of property because of an error in the description of properties or similarity in names, the secretary may issue a release without the payment of any consideration or any costs the circuit clerk is entitled to receive, as provided by law in these matters.
3. The secretary's release shall be given under his or her seal and filed in the office of the circuit clerk in the county in which the lien is filed, or it shall be recorded in any office in which conveyances of real estate may be recorded.
1. If a return required under any state tax law has been filed by spouses and the amount of tax due on the return was understated by either the omission of an amount properly includable in the return or by erroneous deductions or credits attributable to one (1) spouse, upon written request, the Secretary of the Department of Finance and Administration may relieve the other spouse of liability for any tax, penalty, or interest attributable to the understatement of tax for that return.
2. In determining whether to grant the relief set out in subsection (a) of this section, the secretary may take into consideration the following factors:
  1. Whether the spouse making the request for relief has significantly benefited, either directly or indirectly, from the understatement of tax;
  2. Whether the spouse making the request for relief knew or had reason to know of the understatement of tax; and
  3. Any other fact or circumstance that would make it inequitable to hold the spouse making the request for relief liable for the deficiency resulting from the understatement of tax.
3. As used in subdivision (b)(2) of this section, “reason to know” means whether a reasonably prudent person would have known that an understatement was made.
4. As used in subsection (a) of this section, “attributable to one (1) spouse” means that the understatement on the return was the result of the actions taken or information supplied by that spouse.
1. The Secretary of the Department of Finance and Administration shall, as soon as practicable, but not later than one hundred eighty (180) days after July 3, 1989, prepare a statement which sets forth in simple and nontechnical terms:
  1. The rights of a taxpayer and the obligations of the secretary during an audit;
  2. The procedure by which a taxpayer may appeal any adverse decision of the secretary, including administrative and judicial appeals;
  3. The procedures for prosecuting refund claims and for filing of taxpayer complaints; and
  4. The procedures which the secretary may use in enforcing the state's revenue laws, including assessment, estimated assessment, jeopardy assessment, and the filing and enforcement of liens.
2. The statement prepared in accordance with subsection (a) of this section shall be distributed by the secretary to a taxpayer:
  1. When a proposed assessment of any state tax is made against the taxpayer or when the taxpayer is contacted by the secretary for an examination of the taxpayer's records, whichever is earlier;
  2. When requested by the taxpayer; and
  3. At any time the secretary deems it appropriate.
3. The secretary shall take such actions as the secretary deems necessary to ensure that such distribution does not result in multiple statements being sent to any one (1) taxpayer.
1. Recording of Interviews.
  1. Recording by Taxpayer. Any agent of the Secretary of the Department of Finance and Administration in connection with any in-person interview with any taxpayer relating to the determination or collection of any tax shall, upon advance request of such taxpayer, allow the taxpayer to make an audio recording of such interview at the taxpayer's expense and with the taxpayer's equipment.
  2. Recording by Secretary. An agent of the secretary may make an audio recording of any interview described in subdivision (a)(1) of this section if such agent:
    1. Informs the taxpayer of such recording prior to the interview; and
    2. Upon request of the taxpayer, provides the taxpayer with a copy of such recording, but only if the taxpayer provides reimbursement for the cost of the reproduction of such copy.
2. Safeguards.
  1. Explanations of Processes. An agent of the secretary, before or at an initial interview, shall provide to the taxpayer:
    1. In the case of an in-person interview with the taxpayer relating to the determination of any tax, an explanation of the audit process and the taxpayer's rights under such process; or
    2. In the case of an in-person interview with the taxpayer relating to the collection of any tax, an explanation of the collection process and the taxpayer's rights under such process.
  2. Right of Consultation. If the taxpayer clearly states to an agent of the secretary at any time during any interview, other than during an interview initiated by an administrative summons issued under § 26-18-305, that the taxpayer wishes to consult with an attorney, certified public accountant, or any other person permitted to represent the taxpayer before the secretary, then such agent shall suspend such interview regardless of whether the taxpayer may have answered one (1) or more questions. However, the taxpayer may be requested to sign a waiver extending the time the secretary has for making a final assessment as provided by § 26-18-401. If the taxpayer refuses to sign such a waiver, the taxpayer may be subject to an estimated assessment by the secretary.
3. Representatives Holding Power of Attorney.
  1. Any attorney, certified public accountant, or any other person, permitted to represent the taxpayer before the secretary who is not disbarred or suspended from practice may be authorized by such taxpayer to represent the taxpayer in any interview described in subsection (a) of this section.
  2. An agent of the secretary may not require a taxpayer to accompany the representative in the absence of an administrative summons issued to the taxpayer under § 26-18-305.
  3. Such agent, with the consent of the immediate supervisor of such agent, may notify the taxpayer directly that such agent believes such representative is responsible for unreasonable delay or hindrance of an examination or investigation of the taxpayer.
4. Section Not to Apply to Certain Investigations. This section shall not apply to criminal investigations or investigations relating to the integrity of any agent of the secretary.
1. In General. The Secretary of the Department of Finance and Administration shall abate any portion of any penalty or addition to tax attributable to erroneous advice furnished to the taxpayer in writing by an agent of the secretary acting in such agent's official capacity.
2. Limitations. The provisions of subsection (a) of this section shall apply only if:
  1. The written advice was reasonably relied upon by the taxpayer and was in response to a specific written request of the taxpayer; and
  2. The portion of the penalty or addition to tax did not result from a failure by the taxpayer to provide adequate or accurate information.
1. General Rule.
  1. Any notice to which this section applies shall:
    1. Describe the basis for the tax due and any interest, additional amounts, additions, and assessable penalties;
    2. Identify the amounts, if any, of the tax due, interest, additional amounts, additions to the tax, and assessable penalties included in the notice; and
    3. Provide contact information for the taxpayer to use if the taxpayer wants to obtain his or her tax records, including without limitation the facts and evidence supporting the proposed deficiency, from the Department of Finance and Administration.
  2. An inadequate description under this subsection shall not invalidate such notice.
2. Notice to Which Section Applies. This section shall apply to:
  1. Any notice to be given by the Secretary of the Department of Finance and Administration described in § 26-18-307;
  2. Any notice generated out of any information return matching program; and
  3. The first letter of the proposed deficiency which allows the taxpayer an opportunity for administrative review under this chapter.
1. Authorization of Agreements. The Secretary of the Department of Finance and Administration is authorized to enter into written agreements with any taxpayer under which such taxpayer is allowed to satisfy liability for payment of any tax in installment payments, if the secretary determines that such agreement will facilitate collection of such liability.
2. Extent to Which Agreements Remain in Effect.
  1. In General. Except as otherwise provided in this subsection, any agreement entered into by the secretary under subsection (a) of this section shall remain in effect for the term of the agreement.
  2. Inadequate Information or Jeopardy. The secretary may terminate any agreement entered into by the secretary under subsection (a) of this section if the following conditions apply:
    1. Information that the taxpayer provided to the secretary prior to the date such agreement was entered into was inaccurate or incomplete; or
    2. The secretary believes that collection of any tax to which an agreement under this section relates is in jeopardy.
  3. Subsequent Change in Financial Conditions.
    1. In General. If the secretary makes a determination that the financial condition of a taxpayer with whom the secretary has entered into an agreement under subsection (a) of this section has significantly changed, the secretary may alter, modify, or terminate such agreement.
    2. Notice. Action may be taken by the secretary under subdivision (b)(3)(A) of this section only if:
      1. Notice of such determination is provided to the taxpayer no later than thirty (30) days prior to the date of such action; and
      2. Such notice includes the reasons why the secretary believes a significant change in the financial condition of the taxpayer has occurred.
  4. Failure to Pay an Installment or any Other Tax Liability When Due or to Provide Requested Financial Information. The secretary may alter, modify, or terminate an agreement entered into by the secretary under subsection (a) of this section in the case of the failure of the taxpayer to:
    1. Pay any installment at the time such installment payment is due under such agreement;
    2. Pay any other tax liability at the time such liability is due; or
    3. Provide a financial condition update as requested by the secretary.
1. In General. If any employee of the Secretary of the Department of Finance and Administration knowingly, or by reason of negligence, fails to release a lien under § 26-18-706 or § 26-18-811 on property of the taxpayer, such taxpayer may bring a civil action for damages against the secretary in court.
2. Damages. In any action brought under subsection (a) of this section, upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the sum of the following:
  1. Actual, direct, economic damages sustained by the plaintiff which, but for the action of the defendant, would not have been sustained; plus
  2. The costs of the action.
3. Limitations.
  1. Requirement that Administrative Remedies Be Exhausted. A judgment for damages shall not be awarded under subsection (b) of this section, unless the court determines that the plaintiff has exhausted the administrative remedies available to such plaintiff within the Revenue Division of the Department of Finance and Administration.
  2. Mitigation of Damages. The amount of damages awarded under subdivision (b)(1) of this section shall be reduced by the amount of such damages which could have reasonably been mitigated by the plaintiff.
  3. Period for Bringing Action. Notwithstanding any other provision of the law, an action to enforce liability created under this section may be brought without regard to the amount in controversy and may be brought only within two (2) years after the date the right of action accrues.
4. Notice of Failure to Release Lien. The secretary shall by rule prescribe reasonable procedures for a taxpayer to notify the secretary of the failure to release a lien on property of the taxpayer.
1. In General. If, in connection with any collection of state tax with respect to a taxpayer, any employee of the Revenue Division of the Department of Finance and Administration, recklessly or intentionally disregards any provision of this title, or any rule promulgated under this title, such taxpayer may bring a civil action for damages against the Secretary of the Department of Finance and Administration. Except as provided in § 26-18-808, such civil action shall be the exclusive remedy for recovering damages resulting from such actions.
2. Damages. In any action brought under subsection (a) of this section, upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the lesser of ten thousand dollars ($10,000) or the sum of:
  1. Actual, direct economic damages sustained by the plaintiff as a proximate result of the reckless or intentional actions of the officer or employee; and
  2. The costs of the action.
3. Limitations.
  1. Requirement that Administrative Remedies Be Exhausted. A judgment for damages shall not be awarded under subsection (b) of this section unless the court determines that the plaintiff has exhausted the administrative remedies available to such plaintiff within the division.
  2. Mitigation of Damages. The amount of damages awarded under subdivision (b)(1) of this section shall be reduced by the amount of such damages which could have reasonably been mitigated by the plaintiff.
  3. Period for Bringing Action. Notwithstanding any other provision of law, an action to enforce liability created under this section may be brought without regard to the amount in controversy and may be brought only within two (2) years after the date the right of action accrues.
4. Damages for Frivolous or Groundless Claims. Whenever it appears to the court that the taxpayer's position in proceedings before the court instituted or maintained by such taxpayer under this section, is frivolous or groundless, then damages in an amount not in excess of ten thousand dollars ($10,000) shall be awarded to the Department of Finance and Administration by the court in the court's decision. Damages so awarded shall be assessed at the same time as the decision and shall be paid upon notice and demand from the secretary.
1. Imposition of Penalty. If any person who is engaged in the business of preparing, or providing services in connection with the preparation of, returns of tax administered under this chapter, or when any person who, for compensation prepares any such return for any other person, and who:
  1. Discloses any information furnished to him or her for, or in connection with, the preparation of any such return; or
  2. Uses any such information for any purpose other than to prepare, or assist in preparing, any such return,
2. Subsection (a) of this section shall not apply to a disclosure of information if such disclosure is made either:
  1. Pursuant to any other provision of this subchapter;
  2. Pursuant to an order of a court; or
  3. For quality or peer reviews, which are conducted under the auspices of the American Institute of Certified Public Accountants or the United States Securities and Exchange Commission.
3. Subsection (a) of this section shall be in addition to the provisions of § 26-18-303.
1. In General. In such form and at such time as the Secretary of the Department of Finance and Administration shall prescribe by rule, any person shall be allowed to appeal to the secretary after the filing of a notice of a lien under this subchapter on the property or the rights to property of such person, for a release of such lien alleging an error in the filing of the notice of such lien.
2. Certification of Release. If the secretary determines that the filing of the notice of any lien was erroneous, the secretary shall expeditiously, and, to the extent practicable, within fourteen (14) days after such determination, issue a certificate of release of such lien and shall include in such certificate a statement that such filing was erroneous.
1. The Secretary of the Department of Finance and Administration shall request the General Assembly to appropriate funds and create positions for an Office of Problems Resolution and Tax Information, which shall resolve taxpayer problems directly and provide information to taxpayers concerning tax law. This office shall report directly to the secretary or his or her designee.
2. The secretary shall have the authority to establish the duties of the office. The office shall give highest priority to reviewing taxpayer problems and taking prompt and appropriate action to resolve problems and respond to taxpayers.
1. The Secretary of the Department of Finance and Administration shall establish a Tax Advisory Council consisting of representatives of the Arkansas Bar Association, the Arkansas Society of Certified Public Accountants, the Arkansas Society of Accountants, the Office of Problems Resolution and Tax Information, other taxpayer-oriented groups, and other representatives of the Revenue Division of the Department of Finance and Administration.
2. The council shall meet annually to discuss tax law changes, compliance problems, and other related matters, and it shall study methods to expedite claims for refunds, protests, appeals, and cases which take an inordinate amount of time to complete.
3. The council will develop and submit a report to the chairs of the House Committee on Revenue and Taxation and the Senate Committee on Revenue and Taxation.
1. A claim may be filed with the Department of Finance and Administration for any actual damages sustained as a result of any erroneous action taken in a collection activity. Each claimant applying for reimbursement shall file a claim in such form as may be prescribed by the Secretary of the Department of Finance and Administration. In order for the claim to be granted, the claimant must establish that:
  1. The actual damage resulted from an error made by the Revenue Division of the Department of Finance and Administration; and
  2. Prior to the actual damage, the taxpayer responded to all contacts by the division and provided all requested information or documentation sufficient to establish the taxpayer's position. This provision may be waived for reasonable cause.
2. 1. 1. Claims made pursuant to this section shall be filed within ninety (90) calendar days after the date the actual damage was sustained.
    2. Within thirty (30) calendar days after the date the claim is received, the claim shall be approved or denied.
  2. If a claim is denied, the taxpayer shall be notified in writing of the reason for the denial of the claim.
1. In addition to all other remedies provided by law for the collection of unpaid taxes, the Secretary of the Department of Finance and Administration may close the business of a noncompliant taxpayer as defined by § 26-18-104, subject to the administrative and judicial appeal procedures in this subchapter, if the noncompliant taxpayer for three (3) times within any consecutive twenty-four-month period fails to either:
  1. Report in the manner required by Arkansas law:
    1. Gross receipts or compensating use tax; or
    2. State income tax withholding for employees; or
  2. Remit the tax that is due for the reporting period for:
    1. Gross receipts or compensating use tax; or
    2. State income tax withholding for employees.
2. 1. The secretary shall give notice to the noncompliant taxpayer that the third delinquency in reporting or remitting tax in any consecutive twenty-four-month period will result in the closure of the business.
  2. The notice must be in writing and delivered to the noncompliant taxpayer by the United States Postal Service or by hand delivery.
3. 1. If the noncompliant taxpayer has a third delinquency in reporting or remitting tax in any consecutive twenty-four-month period after the issuance of the notice provided in subsection (b) of this section, the secretary shall notify the noncompliant taxpayer by certified mail or by hand delivery that the business will be closed within five (5) business days from the date of the notice unless the noncompliant taxpayer makes arrangements with the secretary to satisfy the tax delinquency.
  2. When the fifth day falls on a Saturday, Sunday, or legal holiday, the performance of the act is considered timely if it is performed on the next succeeding business day that is not a Saturday, Sunday, or legal holiday.
4. A noncompliant taxpayer may avoid closure of the business by:
  1. Filing all delinquent reports and by remitting the delinquent tax including any interest and penalty; or
  2. Entering into a payment agreement approved by the secretary to satisfy the tax delinquency.
5. After written notice delivered to a lottery retailer by the United States Postal Service or by hand delivery, the secretary may pursue a remedy under this subchapter against a lottery retailer as a noncompliant taxpayer upon receiving a referral from the Office of the Arkansas Lottery under § 23-115-605.
1. A noncompliant taxpayer may request an administrative hearing concerning the decision of the Secretary of the Department of Finance and Administration to close the noncompliant taxpayer's business by following the procedures in this section.
2. Within five (5) business days after the delivery or attempted delivery of the notice required by § 26-18-1001(c), the noncompliant taxpayer may file a written protest, signed by the noncompliant taxpayer or his or her authorized agent, stating the reasons for opposing the closure of the business and requesting an administrative hearing.
3. 1. A noncompliant taxpayer may request that an administrative hearing be held in person, by telephone, upon written documents furnished by the noncompliant taxpayer, or upon written documents and any evidence produced by the noncompliant taxpayer at an administrative hearing.
  2. The secretary has the discretion to determine whether an administrative hearing at which testimony is to be presented will be conducted in person or by telephone.
  3. A noncompliant taxpayer who requests an administrative hearing based upon written documents is not entitled to any other administrative hearing prior to the hearing officer's rendering a decision.
4. The administrative hearing will be conducted by a hearing officer appointed by the secretary under § 26-18-405.
5. 1. The hearing officer will set the time and place for a hearing and will give the noncompliant taxpayer notice of the hearing.
  2. At the administrative hearing, the noncompliant taxpayer may be represented by an authorized representative and may present evidence in support of his or her position.
6. 1. The hearing may be held in any city in which the Revenue Division of the Department of Finance and Administration maintains a field audit district office or in such other city as the secretary may designate.
  2. The administrative hearing will be held within fourteen (14) calendar days of receipt by the secretary of the request for hearing.
7. The administrative hearing and determinations made by the hearing officer under this subchapter are not subject to the provisions of the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
8. The defense or defenses to the closure of a business under this subchapter are:
  1. Written proof that the noncompliant taxpayer filed all delinquent returns and paid the delinquent tax due including interest and penalty; or
  2. That the noncompliant taxpayer has entered into a written payment agreement, approved by the secretary, to satisfy the tax delinquency.
9. The decision of the hearing officer must be in writing with copies delivered to the noncompliant taxpayer and the Department of Finance and Administration by the United States Postal Service or by hand delivery.
10. A decision of the hearing officer to sustain the secretary's decision to close the business of the noncompliant taxpayer is effective twenty (20) days after the date of the decision and, except as provided under § 26-18-1003, acts as an injunction prohibiting further operation of the business.
1. As used in this section:
  1. “Administrative decision” means a decision issued under § 26-18-1002 to affirm the decision of the Secretary of the Department of Finance and Administration to close the business of a noncompliant taxpayer;
  2. “Business” means a business subject to an administrative decision; and
  3. “Business closure order” means a notice of closure issued by the secretary under § 26-18-1001.
2. 1. A noncompliant taxpayer may seek judicial relief from an administrative decision by filing suit within twenty (20) calendar days of the date of the administrative decision.
  2. Jurisdiction for a suit under this section shall be in the Pulaski County Circuit Court or the circuit court of the county where the noncompliant taxpayer resides or has his or her principal place of business, where the matter shall be tried de novo.
3. 1. 1. A noncompliant taxpayer shall not operate a business after twenty (20) calendar days from issuance of an administrative decision unless the noncompliant taxpayer obtains an order from the circuit court staying the effect of the administrative decision.
    2. An order of a circuit court to stay the effect of an administrative decision may be revoked if the secretary provides proof that the taxpayer has failed to timely file returns for or make full payment of the taxes identified in § 26-18-1001(a) after the date suit is filed under this section.
  2. If a noncompliant taxpayer fails to obtain an order staying the effect of the administrative decision or if an order staying the effect of the administrative decision is later revoked, the secretary shall follow the procedures in §§ 26-18-1004 and 26-18-1005 to enforce the closure of the business pending the outcome of the suit filed under this section.
4. The noncompliant taxpayer or the secretary may file an appeal of the circuit court decision to the appropriate appellate court as provided by law.
5. 1. If a circuit court issues an order under this section affirming a business closure order, the order of the circuit court shall constitute an injunction prohibiting further operation of the business.
  2. In order to operate a business while an appeal is pending under subsection (d) of this section, a noncompliant taxpayer shall obtain an order from the appellate court staying the decision of the circuit court.
6. The procedures established by this section are the sole methods for seeking judicial relief from an administrative decision.
7. A noncompliant taxpayer shall not continue to operate a business if:
  1. The noncompliant taxpayer fails to seek judicial relief from a business closure order under this section;
  2. The noncompliant taxpayer fails to obtain a stay of the effect of a business closure order under subsections (c) and (e) of this section; or
  3. A business closure order is upheld on an appeal filed under subsection (d) of this section.
8. Upon conviction, any person responsible for the decision to operate a business in violation of this subchapter is guilty of a Class A misdemeanor.
1. If a noncompliant taxpayer fails to timely seek administrative or judicial review of a business closure decision or if the business closure decision is affirmed after administrative or judicial review, the Secretary of the Department of Finance and Administration shall affix a written notice to all entrances of the business that:
  1. Identifies the business as being subject to a business closure order; and
  2. States that the business is prohibited from further operation.
2. 1. The secretary may also lock or otherwise secure the business so that it may not be operated.
  2. However, if the business is located in the noncompliant taxpayer's home, the secretary shall not lock or otherwise secure the business but may post the notice under subsection (a) of this section.
3. The secretary may request the assistance of the Division of Arkansas State Police or any state or local law enforcement official to post the notice or to secure the business as authorized in this section.
4. Any taxpayer information disclosed by the secretary under the procedures outlined in this section shall not be subject to the confidentiality provisions of § 26-18-303.
1. After the decision to close the noncompliant taxpayer's business becomes final, the Secretary of the Department of Finance and Administration shall contact the appropriate administrative body responsible for granting licenses to operate the business and report the closure of the business.
2. The closure of a business under this subchapter shall be grounds for the suspension or revocation of any business license granted under the laws of the State of Arkansas, excluding professional licenses.
1. As used in this subchapter, “electronic funds transfer” means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit an account, commonly referenced as either an automated clearinghouse credit or an automated clearinghouse debit.
2. A transfer of funds by wire transfer which contains no electronic record from which to identify the taxpayer, tax type, tax account number, and tax period is not an electronic funds transfer.
1. 1. If the Secretary of the Department of Finance and Administration determines that a taxpayer's monthly liability for the following taxes for any calendar year equals or exceeds twenty thousand dollars ($20,000), the taxpayer shall pay any tax due by electronic funds transfer:
    1. Income withholding taxes under the Arkansas Income Tax Withholding Act of 1965, § 26-51-901 et seq.;
    2. Gross receipts or sales taxes under the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., §§ 26-74-201 — 26-75-705, or the Local Government Bond Act of 1985, § 14-164-301 et seq.;
    3. Compensating or use taxes under the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq.;
    4. Privilege taxes;
    5. Special alcoholic beverage excise taxes under § 3-7-201;
    6. Alcoholic beverage supplemental taxes under §§ 3-9-213 and 3-9-223; and
    7. Any other taxes supplemental to the taxes in subdivisions (a)(1)(A)-(F) of this section or required to be collected and remitted in the same manner as sales or use taxes or any other law of this state.
  2. If the secretary determines that a taxpayer's monthly liability for the following taxes for any calendar year equals or exceeds twenty thousand dollars ($20,000), the taxpayer shall pay the taxes due by electronic funds transfer:
    1. Taxes on tobacco products under the Arkansas Tobacco Products Tax Act of 1977, § 26-57-201 et seq.;
    2. Severance taxes under §§ 26-58-101 — 26-58-303; or
    3. Taxes on spirituous liquors, wines, malt liquors, and beer under §§ 3-5-101 — 3-7-114.
  3. If the secretary determines that a taxpayer's monthly liability for soft drink taxes under the Arkansas Soft Drink Tax Act, § 26-57-901 et seq., for any calendar year equals or exceeds twenty thousand dollars ($20,000), the taxpayer shall pay the taxes due by electronic funds transfer.
2. Monthly liability for taxes shall be determined by the secretary on the basis of average monthly liability for the preceding year.
3. 1. The transfer shall be made no later than the day before the due date for payment of the taxes so that payment of the taxes is received by the secretary on or before the due date for payment of the taxes as required by the laws of this state.
  2. 1. A taxpayer who pays income withholding tax by electronic funds transfer or through the state module of the electronic funds transfer payment system of the United States Department of the Treasury in the time and manner required by this section shall not be required to file a monthly withholding return.
    2. However, the taxpayer shall annually file a withholding return, setting forth the basis for each monthly payment made during the year by electronic funds transfer or through the state module of the electronic funds transfer payment system of the United States Department of the Treasury, on or before the fifteenth day following the end of each year.
    3. The annual withholding return shall be made on such a form and shall include such information as the secretary prescribes.
  3. Except as otherwise provided by this subchapter, no taxpayer required to pay tax by electronic funds transfer or who remits tax through the state module of the electronic funds transfer payment system of the United States Department of the Treasury shall be relieved from filing returns or complying with all other requirements of state tax laws.
  4. 1. For any withholding tax reporting period, a company or any other business enterprise that provides the service of reporting and remitting withholding tax on the wages paid to Arkansas employees by other employers shall remit all such withholding taxes to the secretary by electronic funds transfer.
    2. However, a company or business that provides tax reporting and remitting services shall not be required to remit withholding taxes by electronic funds transfer if the company or business provides those services for fewer than one hundred (100) Arkansas employers.
    3. As used in this subdivision (c)(4), “Arkansas employer” means any employer required by Arkansas law to withhold, report, and remit Arkansas income tax on the wages, salary, or other compensation paid to its employees within this state.
  5. 1. If the Federal Reserve Bank is closed on a due date that prohibits a taxpayer from being able to make a payment through electronic funds transfer, the payment shall be accepted as timely if made on the next day the Federal Reserve Bank is open.
    2. A return filed in conjunction with a remittance that cannot be made due to the closure of the Federal Reserve Bank shall be accepted as timely if filed in conjunction with the payment on the next day the Federal Reserve Bank is open.
4. The following may elect to utilize the state module of the electronic funds transfer payment system of the United States Department of the Treasury to pay monthly income withholding taxes by electronic funds transfer:
  1. Any taxpayer who is not required by subdivision (a)(1) of this section to pay income withholding taxes by electronic funds transfer; or
  2. Any business that provides tax reporting and remitting services that is not required by subdivision (c)(4) of this section to pay income withholding taxes by electronic funds transfer.
1. If the Secretary of the Department of Finance and Administration determines that a corporation's estimated quarterly state income tax liability under § 26-51-911 et seq. equals or exceeds twenty thousand dollars ($20,000), the corporation shall pay the quarterly income taxes due by electronic funds transfer.
2. A corporation's quarterly liability shall be determined on the basis of average quarterly liability for the preceding year.
3. 1. The transfer shall be made no later than the day before the due date for payment of the taxes so that payment of the taxes is received by the secretary on or before the due date for payment of the taxes as required by the laws of this state.
  2. If the corporation's income tax payment is timely made by electronic funds transfer, the corporation is not required to file a quarterly estimated tax declaration.
1. In addition to the penalties imposed under the Arkansas Tax Procedure Act, § 26-18-101 et seq., a taxpayer required to pay taxes by electronic funds transfer who fails to so pay the amount required under any state law on or before the due date for payment of the taxes shall be assessed a penalty of five percent (5%) of the amount of taxes due.
2. In addition to all other penalties imposed under this subchapter and the Arkansas Tax Procedure Act, § 26-18-101 et seq., a taxpayer required to pay sales taxes by electronic funds transfer who fails to so pay any of the sales taxes on or before the due date for payment of the taxes in the amounts required under § 26-52-501 or § 26-52-512 shall not be entitled to the benefits contained in §§ 26-52-503 and 26-52-512.
3. 1. With respect to an electronic funds transfer by automated clearinghouse debit, “to pay taxes by electronic funds transfer” means that the following conditions are met on or before the due date for such payment:
    1. The taxpayer initiates the automated clearinghouse debit by calling the designated toll-free telephone number by 3:00 p.m. on the last business day prior to the due date;
    2. The taxpayer accurately provides the Secretary of the Department of Finance and Administration with sufficient information from which the payment may be applied to the correct account, including, but not limited to, the taxpayer's name, account number, tax type, tax period, and the amount of the payment; and
    3. The taxpayer's bank account designated as the account to be debited contains adequate funds to cover the payment of taxes by debit transfer at the time the debit transaction is initiated and continuing through the due date of the tax payment.
  2. With respect to an electronic funds transfer by automated clearinghouse credit, “to pay taxes by electronic funds transfer” means that the following conditions are met on or before the due date for the payment:
    1. 1. The taxpayer initiates a successful prenote or test transaction containing necessary information in cash concentration or disbursement plus tax payment addendum (CCD + TXP) format.
      2. “Tax payment addendum format” means a technical format for the communication of limited tax remittance data accompanying a payment through the automated clearinghouse system and includes a list of standard tax-type and account-type codes;
    2. The transfer contains an electronic addenda which allows the secretary to identify the taxpayer, tax account number, tax payment amount, tax type, and tax period in accordance with instructions provided by the secretary;
    3. The taxpayer transfers the amount of funds due; and
    4. The taxpayer's designated bank account contains adequate funds to cover the credit transfer at the time the credit transaction is initiated and continuing through the due date of the tax payment.
  3. 1. A taxpayer is considered to have failed to pay taxes by electronic funds transfer if the conditions stated in subdivision (c)(1) or subdivision (c)(2) of this section are not met.
    2. The secretary will notify the taxpayer in writing of the failure to meet the conditions with respect to a particular reporting period.
    3. Subsequent failures to meet the prescribed conditions shall result in the assessment of penalties described in subsection (a) of this section without necessity of additional written notice.
1. The Secretary of the Department of Finance and Administration is authorized and directed to enter into the Streamlined Sales and Use Tax Agreement with one (1) or more states to simplify and modernize sales and use tax administration in order to substantially reduce the burden of tax compliance for all sellers and for all types of commerce.
2. In furtherance of the agreement, the secretary is authorized to act jointly with other states that are members of the agreement to establish standards for certification of a certified service provider and certified automated system and establish performance standards for multistate sellers.
3. The secretary is further authorized to take other actions reasonably required to implement the provisions set forth in this chapter.
4. Other actions authorized by this section include, but are not limited to, the adoption of rules and the joint procurement, with other member states, of goods and services in furtherance of the cooperative agreement.
5. The secretary or his or her designee is authorized to represent this state before the other states that are signatories to the agreement.
1. No provision of the agreement authorized by this chapter in whole or part invalidates or amends any provision of the law of this state.
2. Adoption of the agreement by this state does not amend or modify any law of this state.
3. Implementation of any condition of the agreement in this state, whether adopted before, at, or after membership of this state in the agreement, must be by the action of this state.
1. Uniform State Rate.
  1. Limiting the number of state rates;
  2. Limiting the application of maximums on the amount of state tax that is due on a transaction; and
  3. Limiting the application of thresholds on the application of state tax.
2. Uniform Standards.
  1. The sourcing of transactions to taxing jurisdictions;
  2. The administration of exempt sales;
  3. The allowances a seller can take for bad debts; and
  4. Sales and use tax returns and remittances.
3. Uniform Definitions.
4. Central Registration.
5. No Nexus Attribution.
6. Local Sales and Use Taxes.
  1. Restricting variances between the state and local tax bases;
  2. Requiring states to administer any sales and use taxes levied by local jurisdictions within the state so that sellers collecting and remitting these taxes will not have to register or file returns with, remit funds to, or be subject to independent audits from local taxing jurisdictions;
  3. Restricting the frequency of changes in the local sales and use tax rates and setting effective dates for the application of local jurisdictional boundary changes to local sales and use taxes; and
  4. Providing notice of changes in local sales and use tax rates and of changes in the boundaries of local taxing jurisdictions.
7. Monetary Allowances.
8. State Compliance.
9. Consumer Privacy.
10. Advisory Councils.
1. The agreement authorized by this chapter is an accord among individual cooperating sovereigns in furtherance of their governmental functions.
2. The agreement provides a mechanism among the member states to establish and maintain a cooperative, simplified system for the application and administration of sales and use taxes under the duly adopted law of each member state.
1. 1. The agreement authorized by this chapter binds and inures only to the benefit of this state and the other member states.
  2. No person, other than a member state, is an intended beneficiary of the agreement.
  3. Any benefit to a person other than a state is established by the law of this state and the other member states and not by the terms of the agreement.
2. 1. Consistent with subsection (a) of this section, no person shall have any cause of action or defense under the agreement or by virtue of this state's approval of the agreement.
  2. No person may challenge, in any action brought under any provision of law, any action or inaction by any department, agency, or other instrumentality of this state, or any political subdivision of this state on the ground that the action or inaction is inconsistent with the agreement.
3. No law of this state, or the application thereof, may be declared invalid as to any person or circumstance on the ground that the provision or application is inconsistent with the agreement.
1. 1. A certified service provider is the agent of a seller, with whom the certified service provider has contracted, for the collection and remittance of sales and use taxes.
  2. As the seller's agent, the certified service provider is liable for sales and use tax due each member state on all sales transactions it processes for the seller except as set out in this section.
  3. A seller that contracts with a certified service provider is not liable to the state for sales or use tax due on transactions processed by the certified service provider unless the seller misrepresented the type of items it sells or committed fraud.
  4. In the absence of probable cause to believe that the seller has committed fraud or made a material misrepresentation, the seller is not subject to audit on the transactions processed by the certified service provider.
  5. A seller is subject to audit for transactions not processed by the certified service provider.
  6. The member states acting jointly may perform a system check of the seller and review the seller's procedures to determine if the certified service provider's system is functioning properly and the extent to which the seller's transactions are being processed by the certified service provider.
2. 1. A person that provides a certified automated system is responsible for the proper functioning of that system and is liable to the state for underpayments of tax attributable to errors in the functioning of the certified automated system.
  2. A seller that uses a certified automated system remains responsible and is liable to the state for reporting and remitting tax.
3. A seller that has a proprietary system for determining the amount of tax due on transactions and has signed an agreement establishing a performance standard for that system is liable for the failure of the system to meet the performance standard.
1. The Department of Finance and Administration shall participate in an online sales and use tax registration system in cooperation with the states that are members of the agreement.(b) The department shall not use a seller's registration with the online sales and use tax registration system as provided in subsection (a) of this section and any subsequent collection of a sales or use tax in determining whether the seller has nexus with the state for any tax at any time.
  1. Model 1 seller;
  2. Model 2 seller;
  3. Model 3 seller; or
  4. Model 4 seller.
1. Except as provided in subsection (c) of this section, a seller or certified service provider using a database provided by the Department of Finance and Administration shall not be liable to the State of Arkansas or its local jurisdictions for charging and collecting the incorrect amount of sales or use tax if the seller or the certified service provider relied on erroneous data provided by the department on sales or use tax rates, boundaries, taxing jurisdiction assignments, or the taxability matrix.
2. The department shall promulgate rules to provide a purchaser relief from a sales or use tax, penalties, and interest for failing to pay the correct amount of sales or use tax if erroneous information on sales or use tax rates, boundaries, or taxing jurisdiction assignments or in the taxability matrix provided by the department has been relied on by the purchaser, the purchaser's seller, or the purchaser's certified service provider.
3. 1. If the department provides an address-based boundary database for assigning taxing jurisdictions and their associated sales or use tax rates, the department may cease providing the relief from liability provided in subsections (a) and (b) of this section if the department gave the seller or the certified service provider adequate notice.
  2. If a seller demonstrates that requiring the use of the address-based database would create an undue hardship, the department may extend the relief from liability to the seller for a designated period of time.
4. 1. If the effective date of a state sales or use tax rate change is less than thirty (30) days from the enactment of the statute providing the rate change, a seller is relieved of liability for failing to collect sales or use tax at the new rate if:
    1. The seller collected sales or use tax at the effective rate immediately preceding the change; and
    2. The seller's failure to collect at the newly effective sales or use tax rate does not extend beyond thirty (30) days after the date of enactment of the new sales or use tax rate.
  2. The seller is not relieved of liability if the seller fraudulently failed to collect at the new sales or use tax rate or solicited purchasers based on the immediately preceding effective sales or use tax rate.
1. The Department of Finance and Administration shall administer use-based exemptions and entity-based exemptions when practicable through a direct pay permit, an exemption certificate, or another means that does not burden sellers.
2. 1. A seller that follows the exemption requirements as prescribed by the Secretary of the Department of Finance and Administration shall be relieved from any tax otherwise applicable if it is determined that the purchaser improperly claimed an exemption.
  2. If it is determined that the purchaser improperly claimed an exemption, the department shall hold the purchaser liable for the nonpayment of tax.
  3. The relief from liability provided in subdivision (b)(1) of this section does not apply to a seller that:
    1. Fraudulently fails to collect the sales or use tax;
    2. Solicits a purchaser to participate in the unlawful claim of an exemption; or
    3. Accepts an exemption certificate from a purchaser claiming an entity-based exemption when:
      1. The subject of the transaction sought to be covered by the exemption certificate is actually received by the purchaser at a location operated by the seller; and
      2. The state where that location resides provides an exemption certificate that clearly and affirmatively indicates that the claimed exemption is not available in that state.
  4. 1. A seller may obtain a fully completed exemption certificate or capture the relevant data elements required by the department within ninety (90) days after the date of sale.
    2. 1. If the seller has not obtained an exemption certificate or all relevant data elements and the department makes a request for substantiation of the exemption, the seller has one hundred twenty (120) days from the date of the request to prove by other means that the transaction was not subject to sales or use tax or to obtain in good faith a fully completed exemption certificate from the purchaser.
      2. As used in subdivision (b)(4)(B)(i) of this section, “good faith” means that the seller obtains a certificate that claims an exemption that:
        
        Was statutorily available on the date of the transaction in the jurisdiction where the transaction is sourced;
        
        Could be applicable to the item being purchased; and
        
        Is reasonable for the purchaser's type of business.
3. A third party vendor may claim a resale exemption based on an exemption certificate provided by its customer or any other acceptable information available to the third party vendor evidencing qualification for a resale exemption regardless of whether the customer is registered with the department to collect and remit sales or use tax.
1. The Secretary of the Department of Finance and Administration shall promulgate rules to provide:
  1. An alternative method for making payments if an electronic funds transfer fails on its due date; and
  2. A rounding algorithm for sales or use tax computation.
2. 1. The Department of Finance and Administration shall develop a simplified electronic return to be used for all state and local sales and use taxes levied by the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., and the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq.
  2. The department shall provide a separate reporting form for any other special or miscellaneous excise taxes so as not to violate the agreement.
  3. The department shall allow all sellers, whether or not the seller is registered under the agreement, to file a simplified electronic return.
  4. A model 4 seller that does not have a legal requirement to register in Arkansas is not required to submit information relating to exempt sales on the simplified electronic return.
  5. A seller that elects to file a simplified electronic return shall give at least a three-month notice of the seller's intent to discontinue filing a simplified electronic return.
3. The department shall allow a seller to elect to compute the sales or use tax due on a transaction on an item or an invoice basis and shall allow the rounding rule to be applied to the aggregated state and local sales or use taxes.
4. 1. A seller that is registered under the agreement and indicated at the time of registration that it does not anticipate making a sale that would be sourced to Arkansas is not required to file a return.
  2. If the seller makes a taxable sale sourced to Arkansas, the seller shall file a return on or before the twentieth day of the month following the sale.
5. 1. A seller registered under the agreement that does not have a legal requirement to register in Arkansas shall be given a minimum of thirty (30) days' notice before the department establishes a tax liability based solely on the seller's failure to timely file.
  2. However, the department may establish a tax liability based solely on a seller's failure to timely file if the seller has a history of nonfiling or late filing.
1. 1. A cause of action against the seller for over-collected sales or use taxes does not accrue until sixty (60) days after a purchaser has provided written notice to the seller.
  2. The written notice to the seller required in subdivision (a)(1) of this section must contain the information necessary to determine the validity of the request.
2. In connection with a purchaser's request from a seller of over-collected sales or use taxes, a seller shall be presumed to have a reasonable business practice if in the collection of the sales or use taxes, the seller:
  1. Uses either a certified service provider or a certified automated system, including a certified proprietary system, that is certified by the State of Arkansas; and
  2. Has remitted to the Department of Finance and Administration all taxes collected less any deductions, credits, or collection allowances.
1. The Secretary of the Department of Finance and Administration shall provide amnesty for uncollected or unpaid sales or use tax to a seller that registers to pay or to collect and remit applicable sales or use tax on sales made to purchasers in the state in accordance with the terms of the agreement, provided that the seller was not registered to collect sales and use tax in the State of Arkansas in the twelve-month period preceding the effective date of the state's participation in the agreement.
2. The amnesty shall preclude assessment for uncollected or unpaid sales or use tax, penalty, and interest for sales made during the period that the seller was not registered in the state, provided registration occurs within twelve (12) months of the date the state is found to be in compliance with the agreement.
3. The amnesty shall not be available to a seller with respect to any matter or matters for which the seller received notice of the commencement of an audit and the audit is not yet finally resolved, including any related administrative and judicial processes.
4. The amnesty shall not be available for sales or use taxes already paid or remitted to the Department of Finance and Administration or to taxes collected by the seller.
5. The amnesty shall be fully effective, absent the seller's fraud or intentional misrepresentations of a material fact, so long as the seller continues its Arkansas sales and use tax registration and continues payment or collection and remittance of applicable sales or use taxes for a period of at least thirty-six (36) months from the date amnesty was awarded.
6. The amnesty shall be applicable only to sales or use taxes due from a seller in its capacity as a seller and not to sales or use taxes due from a seller in its capacity as a purchaser.
7. The secretary shall also provide amnesty to a seller for uncollected or unpaid sales or use tax if:
  1. The seller was already registered with the agreement at the time Arkansas became a full member of the agreement; and
  2. The seller was not registered to collect sales and use tax in Arkansas in the twelve-month period preceding the effective date of Arkansas's full membership in the agreement.
1. The Secretary of the Department of Finance and Administration may:
  1. Certify service providers and automated systems to aid in the administration of sales and use tax collections; and
  2. Provide a monetary allowance to the certified service providers, certified automated systems, and to sellers that do not have a requirement to register to collect the gross receipts tax levied by the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., or the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq.
2. 1. A certified service provider or model 2 seller using a certified automated system is not liable to the State of Arkansas or its local jurisdictions for charging and collecting the incorrect amount of sales or use tax.
  2. The relief from liability provided in this section is not available to a certified service provider or model 2 seller that has incorrectly classified an item or transaction into a product category certified by the state.
  3. 1. If the Department of Finance and Administration determines that an item or transaction is incorrectly classified as to its taxability, it shall notify the certified service provider or model 2 seller of the incorrect classification.
    2. The certified service provider or model 2 seller shall have ten (10) days to revise the classification after receipt of the notice.
    3. Upon the expiration of ten (10) days, the certified service provider or model 2 seller is liable for the failure to collect the correct amount of sales or use tax due.
3. A certified service provider has the same relief from liability as sellers provided in § 26-21-107.
1. The purpose of this section is to set forth a policy to protect the confidentiality rights of all participants in the agreement system and the privacy interests of consumers who deal with model 1 sellers.
2. As used in this section:
  1. “Anonymous data” means information that does not identify a person;
  2. “Confidential taxpayer information” means all information that is protected under Arkansas's laws, rules, and privileges; and
  3. “Personally identifiable information” means information that identifies a person.
3. With very limited exceptions, a certified service provider shall perform its tax calculation, remittance, and reporting functions without retaining the personally identifiable information of consumers.
4. When any personally identifiable information that has been collected and retained is no longer required for the purposes of verifying the validity of an exemption, the personally identifiable information shall no longer be retained by the Department of Finance and Administration.
5. When personally identifiable information regarding an individual is retained, the department shall provide reasonable access by such individual to his or her own information in the state's possession and a right to correct any inaccurately recorded information.
6. If anyone other than the state or a person authorized by this state's law or the agreement seeks to discover personally identifiable information, a reasonable and timely effort to notify the individual indentified in the personally identifiable information of the request shall be made.
7. The privacy policy in this section is subject to enforcement in the same manner as set out in § 26-18-303.
8. All laws and rules regarding the collection, use, and maintenance of confidential taxpayer information remain fully applicable and binding.
1. It is the intent of this act that the following objectives shall apply to the operation of the property tax system for Arkansas taxpayers:
  1. To be taxed fairly and assessed equitably throughout the state;
  2. To have access to information concerning how the system of property taxation works and how their tax dollars are spent;
  3. To participate in the determination of tax rates or millage rates levied in local taxing units;
  4. To receive fair and courteous treatment throughout the property tax system;
  5. To review the reassessments and methodology used in determining the value of their properties and that of comparable properties;
  6. To receive a prompt response by government officials to inquiries regarding the value of their properties;
  7. To require government officials or others responsible for the valuation of property to review and correct any measurement error to the nearest foot, clerical error, or other technical error which occurred in the valuation of their properties;
  8. To be sent a notice setting forth the following:
    1. The amount of any change in the value of their properties;
    2. The right of the taxpayer to appeal such a change; and
    3. The procedures which must be followed on appeal, including the name, title, address, and telephone number of the secretary of the county equalization board to whom the appeal and any supporting documentation should be directed, the deadline for requesting a hearing, and the proof required for adjustment of value;
  9. To complete all steps in the appeal process before paying any disputed taxes;
  10. To receive written notification of the outcome of any appeal; and
  11. To recover any overpayment of taxes resulting from erroneous assessments within three (3) years after payment.
2. The rights enumerated in subsection (a) of this section shall be prominently displayed in each county assessor's and county collector's office in Arkansas.
3. 1. The provisions of subsections (a) and (b) of this section are goals and objectives only and no person or entity shall have a civil cause of action for any alleged breach or violation of any of these goals and objectives.
  2. However, subdivision (c)(1) of this section shall not be interpreted or construed to limit the rights of any taxpayer under any other law of this state.
1. A county collector shall send a property taxpayer a yearly notice concerning his or her rights under the provisions of Arkansas Constitution, Amendment 79, containing the following:
  1. A statement that the assessed value of a homestead used as a principal place of residence and owned by a taxpayer who is disabled or sixty-five (65) years of age or older shall be the lower of the assessed value at the time the taxpayer qualified for the property tax relief under Arkansas Constitution, Amendment 79, or a later assessed value; and
  2. The county assessor's contact information.
2. The yearly notice required in subsection (a) of this section may be sent with the taxpayer's tax statement or by separate first-class mail.
1. The Arkansas Public Service Commission shall have the full power and authority in the administration of the tax laws of this state to file with the county judge, county clerk, and county assessor of each county not later than ten (10) days before the time for the beginning of the assessment of property by the county assessors a certificate showing the percentage of true and full market or actual value that it has used, or will use, in valuing for taxation for that year the property the commission is required to assess.
2. It shall be the duty of the county assessors and county equalization boards and county judges to adopt the same basis of valuation of property in their counties for the purpose of taxation as that certified by the commission.
1. The Arkansas Public Service Commission shall have the full power and authority in the administration of the tax laws of this state to answer all questions that may arise in the construction of any statute affecting the assessment, equalization, or collection of taxes, in accordance with the advice and opinion of the Attorney General.
2. Such opinion and the rules, regulations, orders, and instructions of the commission prescribed and issued in conformity therewith shall be binding upon all officers, who shall faithfully observe and obey the same unless and until they are reversed, annulled, or modified by a court of competent jurisdiction.
1. The Arkansas Public Service Commission shall have the full power and authority in the administration of the tax laws of this state to summon witnesses to appear, give testimony, and produce records, books, papers, documents, and all other information of any kind or character required relating to any matter which the commission shall have authority to investigate and determine.
2. 1. 1. Witnesses may be summoned by ordinary subpoena or by subpoena duces tecum issued by any member of the commission, or by the secretary, in the name of the commission, directed to any county sheriff of Arkansas, and returnable to the commission, which subpoena may be served in like manner as process issued out of any circuit court; or
    2. The subpoenas may be served by registered mail, addressed to the witness with return receipt demanded.
  2. In either case, the subpoenas must be served at least five (5) days previously to the day named therein for the appearance of the witness.
1. 1. For the purpose of making any investigation of any company, firm, corporation, person, association, copartnership, or public utility, subject to the provisions of the laws which the Arkansas Public Service Commission is required to administer, the commission may appoint, by an order in writing, an agent whose duties shall be prescribed in that order.
  2. In the discharge of his or her duties, the agent shall have every power of an inquisitorial nature granted by the law to the commission and the same powers as a notary public, with regard to the taking of depositions; and all powers given by law to a notary public relative to deposition are given to the agent.
2. Except in his or her report to the commission, or when called on to testify in any court or proceedings, any agent who shall divulge any information acquired by him or her in respect to the transactions, property, or business of any company, firm, or corporation, person, association, copartnership, or public utility, while acting or claiming to act under such order, shall be fined not less than fifty dollars ($50.00) nor more than one hundred dollars ($100) and shall thereafter be disqualified from acting as agent or in any other capacity under appointment or employment of the commission.
1. The Arkansas Public Service Commission shall have the full power and authority in the administration of the tax laws of this state to conduct any number of investigations, contemporaneously, through different agents, and may delegate to any agent the taking of all testimony bearing upon any investigation or hearing.
2. The decision of the commission shall be based upon its examination of all testimony and records.
3. The recommendations made by an agent shall be advisory only and shall not preclude the taking of further testimony nor further investigation, if the commission so orders.
1. The Arkansas Public Service Commission shall have the full power and authority in the administration of the tax laws of this state to call a group meeting of two (2) or more county assessors at such time and place as it may designate, due notice of which shall be given by the commission.
2. 1. For attending these meetings, county assessors shall receive no compensation but shall be reimbursed for their actual and necessary expenses in attending the meeting, including only the fare necessarily spent in going to and returning from the place of the meeting.
  2. When such claims are verified by oath and approved by the commission or any member thereof, they shall be presented to the county court which shall make an order showing the amount due and directing the county clerk to draw his or her warrant on the county treasurer to be paid out of any general funds belonging to the county.
1. 1. In case any witness who has been summoned to testify before the Arkansas Public Service Commission shall fail or refuse to testify to or make answer to any material question relating to any matter under investigation or to produce any records, books, papers, or other documents in his or her custody or control when required to do so, any circuit court, or any circuit judge thereof, upon application of any member of the commission, shall issue an attachment for the witness and compel him or her to comply with the summons and to attend before the commission and produce the books, documents, papers, or records and give testimony upon matters about which he or she may be lawfully interrogated.
  2. The circuit court, or circuit judge thereof, may punish a witness for contempt as in the case of disobedience of a like subpoena issued from the circuit court for the refusal to testify in any cases pending therein.
2. 1. No witness shall be excused from attending or testifying or from producing books, papers, records, accounts, and other documents before the commission, or in obedience to its subpoena, on the ground or for the reason that the testimony, documentary or otherwise, required of him or her may tend to incriminate him or her or subject him or her to a penalty or forfeiture.
  2. No person shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he or she may testify or produce evidence, documentary or otherwise, before the commission, or in obedience to its subpoena. However, no person so testifying shall be exempt from prosecution and punishment for perjury committed in so testifying.
3. 1. Every witness who shall appear before the commission by its order shall receive for his or her attendance the fees and mileage allowed by law for witnesses in civil cases in circuit courts, which shall be audited and paid by the state in the same manner as other expenses of the commission are audited and paid, upon the presentation of the proper voucher sworn to by the witness and approved by the commission or the chair thereof.
  2. Witnesses summoned at the instance of parties other than the commission shall be paid by the party causing the witnesses to be summoned.
1. Any taxpayer aggrieved by the action or order of the Arkansas Public Service Commission respecting the assessment or equalization of property shall have the right of appeal to the circuit court and thence to the Supreme Court.
2. 1. All appeals from the commission involving the assessment or equalization of property locally assessed may be either to the circuit court of the county where the property is located or the Pulaski County Circuit Court.
  2. All appeals involving the assessment or equalization of property, the original assessment of which has been fixed by the commission, shall be to the Pulaski County Circuit Court.
3. All appeals shall be taken within thirty (30) days from the date of the action or order appealed from by filing a written notice with the commission and shall be tried de novo.
4. No appeal shall lie from the action or order of the commission on original assessments unless the property owner shall have first exhausted his or her remedy before the commission by way of petition for review.
1. The amount of taxes which may be levied for general purposes in any one (1) year by the constituted authorities of any city or town under the provisions of Arkansas Constitution, Article 12, § 4, may equal, but not exceed, the maximum amount of levy at any time fixed under Arkansas Constitution, Article 12, § 4.
2. This limitation shall not be construed to prohibit assessments on property adjacent to local improvements made in any city or town for the purpose of paying the costs and damages occasioned thereby.
1. 1. Any person having real or personal property assessed for taxation may appear in person or by attorney before the county court, at the time of the levy of taxes by it, or at the succeeding term thereafter, and by petition or remonstrance, object to the levy of any specific tax for illegality, and may by sworn petition, set forth and show any facts upon which the illegality rests.
  2. If the petition is based upon facts, it shall be the duty of the county court to determine both the law and the facts presented, and for that purpose, it shall hear any testimony offered.
  3. If the county court should rule against the objection so presented, the party objecting to the levy may appeal from the ruling to the circuit court of the county. Upon giving bond within ten (10) days, with good and sufficient security, in double the amount of specific tax levied upon the property of the party objecting, subject to the approval of the circuit court, and conditioned for the payment of the tax, should it be decided to have been lawfully levied, it shall operate as a supersedeas of the collection of the tax.
2. 1. The bond shall not operate to prevent the tax being placed upon the tax book.
  2. The bond shall be given to the State of Arkansas.
  3. In the event the levy shall finally be declared illegal, the judgment shall operate as an acquittal to the county collector and his or her securities for the noncollection of the tax.
  4. If the tax is finally declared legal, the county collector shall immediately proceed to collect it as in other cases, or by action on the appeal bond.
  5. Any taxpayer feeling himself or herself aggrieved by any such levy may, at any time before the returning of delinquent taxes by the county collector for that year, appeal as provided in this section.
  6. Any person interested in the levy of the tax may resist the petition to prevent a levy, either before the county court or in the circuit court on appeal.
  7. In all cases where an appeal is taken, the county clerk shall enter on the tax books, opposite the name of the party, tract, or lot of land, the supersedeas of the specific tax.
3. 1. The county court shall employ counsel to attend before it at the hearing, and, should it be appealed to the circuit court, the prosecuting attorney and, if to the Supreme Court, the Attorney General, shall appear in the interest and behalf of the levy of the tax.
  2. The real or personal property upon which the illegal specific tax as alleged to have been levied shall not be withheld from sale on account of any taxes for any purpose due or to become due upon it and which has not been paid as provided by law, and against the collection of which no petition has been filed.
1. Whenever the electors of any county of this state may levy a voluntary tax, it shall be unlawful for the county judge, the county court, or any other county official to use or allocate any moneys derived from any voluntary tax for purposes other than for which it was levied and collected.
2. Any county official violating the provisions of this section shall, upon conviction, be removed from office.
1. 1. Every city or county that adopts an ordinance levying a local sales and use tax which is collected by the Secretary of the Department of Finance and Administration shall submit the ordinance to the secretary at least forty-five (45) days prior to the election on the levy.
  2. The secretary shall review the ordinance to determine if the proposed levy complies with all statutory requirements and limitations, including a separate levy of the sales and use tax, and an authorized sales or use tax rate.
2. 1. The secretary shall approve or reject the ordinance and provide written notice to the city or county within fifteen (15) days of receipt of the ordinance.
  2. 1. If the ordinance is rejected, the secretary shall note the defects.
    2. If the ordinance is rejected and the city or county fails to correct the noted defects, any tax levied by the defective ordinance shall not be collected by the secretary.
3. Whenever a special election is called for the purpose of submitting an initiated measure which levies a city or county sales and use tax to be collected by the secretary, the county board of election commissioners shall submit the initiated measure to the secretary and the provisions of subsections (a) and (b) of this section shall apply.
4. No ordinance or initiated measure shall be deemed invalid because of the failure to submit the ordinance or measure to the secretary or to use a sample form, and such failure shall not constitute a cause of action to invalidate an ordinance or initiated measure.
1. The Arkansas Municipal League, the Association of Arkansas Counties, and the Department of Finance and Administration may jointly develop sample forms and ordinances for levying local sales and use taxes which comply with all statutory requirements and limitations.
2. The sample forms and ordinances will be reviewed regularly in order to comply with changes in the law.
1. When any person, firm, company, copartnership, association, or corporation whose property is required by law to be assessed for ad valorem taxation by the Tax Division of the Arkansas Public Service Commission shall file a petition with the Arkansas Public Service Commission or the Arkansas Transportation Commission [abolished] seeking review of the assessment, the chair of the commission having jurisdiction over the review shall, within ten (10) days of the filing of the petition, give notice to the Attorney General.
2. 1. Upon receipt of notice from the Arkansas Public Service Commission or the Arkansas Transportation Commission [abolished] that a person, firm, company, copartnership, association, or corporation whose property is required by law to be assessed for ad valorem taxation by the division has filed a petition for review of the assessment, the Attorney General shall undertake legal representation of the division and shall serve as chief counsel for the division during the pendency of the review before the commission having jurisdiction of the matter.
  2. The Attorney General shall be assisted by the division's legal counsel and on appeals to the Arkansas Transportation Commission [abolished] by the Arkansas Transportation Commission's [abolished] legal counsel.
  3. If any assessment made by the division is modified on review by order of the commission having jurisdiction of the matter, the Attorney General, after consulting with the administrator of the division, shall be empowered to appeal the commission order to the Pulaski County Circuit Court and shall continue to serve as chief counsel for the division during the appellate process, with the authority to appeal subsequent court orders.
1. 1. 1. There shall be a penalty of ten percent (10%) of all taxes due on all persons and property delinquent in assessment.
    2. Where the penalty of ten percent (10%) of the amount of all taxes due shall amount to less than one dollar ($1.00), the penalty shall be arbitrarily fixed at one dollar ($1.00).
  2. 1. All persons and property not listed for assessment with the county assessor on or before May 31 of the year in which the assessment is required, as provided by this chapter, shall be deemed to be delinquent in assessment, and the county assessor shall so designate it on his or her records that the county clerk may know each item of property and all persons so delinquent.
    2. It shall be the duty of the county officer designated by the county quorum court under § 26-28-102 to affix and extend the penalty provided in this section against each item of property and all persons delinquent in assessment.
  3. The penalty shall be collected by the county collector and shall be paid into the county general fund.
2. Between January 1 and June 5 of each year, each county assessor shall file with the Treasurer of State a sworn statement that he or she will comply with subsection (a) of this section. If a county assessor fails to file the statement by June 5, then the Treasurer of State shall withhold county turnback to that county until the statement is received by the Treasurer of State.
3. If the neglect is willful, the delinquent shall be deemed guilty of a misdemeanor and shall be fined in any sum not more than one thousand dollars ($1,000).
4. 1. In addition to the penalties for not assessing, delinquent persons shall be required to pay an additional fifty cents (50¢) for each list, which shall be utilized by the county assessor to help pay for the expense of assessing property, subject to appropriation by the quorum court.
  2. This additional sum shall be collected by the county collector in the usual manner and paid into the assessor's late assessment fee fund established on the books of the county treasurer.
  3. Moneys in the assessor's late assessment fee fund shall be allowed to accumulate and the fees collected shall not be used in the final tax settlement proration for the costs of operating the assessor's office.
1. It shall be unlawful for any person to refuse to give the county assessor or the appointed deputy his or her name and a complete and accurate description of his or her personal and real property, together with the location and value of it.
2. Any person so refusing, upon conviction, shall be guilty of a violation and shall be fined in any sum not less than ten dollars ($10.00) and not more than twenty-five dollars ($25.00).
1. All duties imposed by this subchapter on all state and county officers are declared to be mandatory, and any officer who neglects, fails, or refuses to perform any such duty shall be subject to removal from office and liable on his or her official bond for such neglect, failure, or refusal.
2. 1. Upon the refusal or failure of any state officer to perform any duty imposed upon him or her under the provisions of this subchapter, any citizen of the state may, and the Attorney General shall, institute in the proper court mandamus proceedings to compel the state officer to perform his or her duties.
  2. Upon the refusal or failure of any county officer to perform any duty imposed upon him or her under the provisions of this subchapter, any citizen of the county may, and the prosecuting attorney of the district including such county shall, institute in the proper court mandamus proceedings to compel the county officer to perform his or her duties.
1. It shall be the duty of each county assessor to keep his or her appraisal and assessment data and records current by securing the necessary field data and making changes in valuations as changes occur in land use and improvements, and as errors are discovered and corrected, so that his or her records will at all times show the valuation of property in accordance with the provisions of this subchapter.
2. Whenever land assessed on an acreage basis is subdivided into lots, the land shall be reassessed on the basis of lots, and whenever land is rezoned for a different use, the land shall be reassessed on the basis of its new classification.
1. The appraisal and assessment shall be according to value as required by Arkansas Constitution, Article 16, Section 5.
2. The percentage of true and full market or actual value to be used in the appraisal and assessment shall be fixed and certified by the Arkansas Public Service Commission as provided by § 26-24-104.
3. Until and unless a budget system is adopted with provisions for eliminating excessive and illegal tax rates and expenditures, the commission shall not fix and certify a percentage of true and full market or actual value in excess of twenty percent (20%).
1. 1. 1. The Assessment Coordination Division shall prepare a ratio study for the purpose of determining the average ratio of full assessed value to the true and full market or actual value of real property, by classifications, in each of the several counties and school districts of the state in the assessment year that reappraised values are placed on the assessment rolls.
    2. 1. This ratio study shall be based on sales-to-assessment ratios, supplemented with appraisal to assessment ratios as required to meet generally accepted statistical techniques.
      2. The study shall determine the actual assessment level of real estate as required by law, including the value of agricultural lands that qualify for use and productivity valuation, by classification such as residential, commercial and industrial, agricultural, and other classifications.
      3. No later than January 31 of every year, all counties shall report, by electronic transmission, sales data to the division. The sales data shall include:
        
        A listing of each property transferred under a warranty deed or special warranty deed;
        
        The consideration paid;
        
        The date of the sale;
        
        The parcel number;
        
        The legal description;
        
        The names of the grantor and grantee;
        
        The most recent assessed value of the property; and
        
        Other data prescribed by the division.
      4. The sales-to-assessment ratio study shall include sales data for the calendar year previous to the assessment year.
        
        In those instances when the number of appropriate sales from the calendar year previous to the assessment year is insufficient to present a statistically sound sample, the sales-to-assessment ratio study may include sales data for the three (3) calendar years previous to the assessment year.
        
        The division shall report the preliminary sales-to-assessment ratio studies to the county assessor and county judge on or before March 1 of the assessment year.
  2. The division shall supplement the sales-to-assessment ratio with appraisals as required and report the original combined real property ratios to the county assessor and county judge.
  3. In conducting the studies, the division shall use generally accepted valuation procedures, statistical compilation, and analysis techniques found in the International Association of Assessing Officers' Standard on Ratio Studies.
2. 1. 1. An annual ratio study for the purpose of determining the average ratio of assessed value to the true and full market or actual value of personal property in each of the several counties of the state shall also be made.
    2. This ratio study of personal property shall be based upon a physical examination of the records of each county assessor's office to determine the degree of compliance with the criteria as established by the Arkansas Commercial Personal Property Appraisal Manual .
  2. The personal property original ratio study shall be certified by the division to the county judge and county assessor of each county by September 15 of each year.
3. 1. On or before August 1 of each year the county assessor shall report to the division by total of items and value the total assessment of the county as made by the county assessor.
  2. 1. The county clerk shall file a report with the division showing the percent of true market or actual value at which the county equalization board has equalized the assessed values of the property of the county under the county equalization board's jurisdiction for the year, together with an abstract of the adjusted assessment by total of items and value.
    2. The report and abstract shall be filed each year no later than thirty (30) days after final adjournment of the county equalization board.
4. 1. Whenever any county assessor or deputy county assessor attends a school or instructional meeting pursuant to the request of the division, he or she shall be entitled to reimbursement for his or her travel expenses, which shall be paid by the division upon filing of a proper claim for the travel expenses.
  2. The county assessor and his or her deputies shall also be entitled to reimbursement for travel expenses within the county in performance of their duties as required by this section, which shall be paid by the county.
  3. 1. All reimbursements for travel expenses shall be limited to the actual and necessary expenses incurred.
    2. The total expenses incurred, other than for transportation, for travel within the county shall not exceed one-half (½) the daily maximum amount authorized for travel of state employees within the state, and, for travel outside the county, the amount shall not exceed the daily maximum amount authorized for travel of state employees within the state, in accordance with state travel laws and rules.
    3. The transportation expenses shall not exceed the actual amount paid, except that the reimbursement for use of a private automobile shall be at the same rate per mile as is allowed in the reimbursement of state employees under the state travel laws and rules for transportation expenses for each mile actually and necessarily traveled by the automobile, within and without the county.
5. 1. In addition to the other provisions of this section, whenever the September 15 ratio for the classifications of market value real estate, business personal property, auto and other personal property, or agricultural and timber falls below eighteen percent (18%) or above twenty-two percent (22%) of full fair market value, the county shall be deemed to have failed the ratio study and shall be subject to the corrective actions outlined in subsection (f) of this section.
  2. Furthermore, when a ratio study determines that the county does not meet the ratio standards found in the International Association of Assessing Officers' Standard on Ratio Studies, the county shall be deemed to have failed the ratio study and shall be subject to the corrective actions outlined in subsection (f) of this section.
  3. The division may conduct a county ratio study, in full or in part, at any time that the division determines that a county has engaged in inappropriate assessment roll changes or manipulations.
6. 1. 1. When a county has failed the ratio study, the division shall direct and supervise a detailed market value and assessment value analysis of the area or class indicating a deficiency in order to determine the political subdivisions and neighborhoods or appraisal methodology, or both, in need of assessment value adjustments.
    2. When appropriate assessment value adjustments are determined for the county, the county shall place the assessment value adjustments on the assessment rolls of the county in a manner that is most equitable for the taxpayers of the county for taxation according to the laws of this state.
    3. 1. The division and counties employing contracted appraisal services shall bear no additional expense for correcting a failed ratio study if the failure is found to be the fault of the contractor.
      2. The contractor shall bear the cost of these additional services.
  2. 1. In the case in which a county fails to place the assessment value adjustments on the assessment rolls of the county as directed by the division, the division may notify the disbursing agents of the State of Arkansas to withhold the funds accruing to the county from all sources until the time that the adjustments are made.
    2. If the adjustments are not made for one (1) year, the withheld funds shall not be reimbursed to the county and shall be deposited into the State General Government Fund, and withholding shall begin for the following year.
7. 1. If a county is aggrieved at the findings of the division, the county may appeal the findings of the division to the Director of the Assessment Coordination Division.
  2. The officials of each unit of government affected shall have the right to examine the records of the division that pertain to the ratio findings or value adjustment order for that unit of government.
1. Any countywide valuation review program begun in accordance with the requirements of § 26-26-305 [repealed] shall be deemed to be a countywide reappraisal of property pursuant to directive of law enacted by the General Assembly.
2. Any county which has begun but has not completed a countywide valuation review program in accordance with the requirements of § 26-26-305 [repealed] or otherwise on March 26, 1997, shall direct that a countywide reappraisal of property be completed, using, in part, valuations determined through the valuation review program for each parcel of taxable property reviewed to date.
3. The provisions of § 26-26-401 et seq. relative to the adjustment or rollback of millage levied for ad valorem tax purposes shall be applicable where a countywide reappraisal of property is completed as provided in this section.
4. Any county which has begun but has not completed a countywide valuation review program in accordance with the requirements of § 26-26-305 [repealed] or otherwise on March 26, 1997, shall suspend the valuations determined through the valuation review program and use the valuations which were applicable prior to the valuation adjustments pending the completion of the countywide reappraisal.
5. Ad valorem taxes which are due and owing on March 26, 1997, shall continue to be due and owing and shall not be affected by the terms of this section.
1. When there is a countywide reappraisal of property for ad valorem tax purposes in any county, which reappraisal is conducted over a period of two (2) or more years, taxes shall not be assessed on the basis of the reappraised value of any property in the county until all taxable property in the county has been reappraised. When a countywide reappraisal of property is completed in any county and taxes are first assessed on the newly reappraised values, the provisions of Arkansas Constitution, Amendment 59, and § 26-26-401 et seq. relative to the adjustment or rollback of millage levied for ad valorem tax purposes shall be applicable.
2. Provided that newly discovered real property, new construction and improvements to real property, and personal property, shall be listed, appraised and assessed as otherwise provided by law until the countywide reappraisal of property is completed.
3. No county which is conducting a comprehensive countywide reappraisal of property for ad valorem tax purposes which is in progress on the third Monday in November in any year, or any municipality or school district therein, shall be subject to any penalties provided in § 26-26-304 for such fiscal year if the following requirements are met:
  1. The reappraisal meets the requirements of § 26-26-401; and
  2. The reappraisal is conducted in accordance with a plan which has been approved by the Assessment Coordination Division and provides that the reappraisal will be completed within twenty-four (24) months following the date of such approval.
1. 1. On or before March 31 of each year, the county collector of each county shall certify to the Chief Fiscal Officer of the State the amount of the real property tax reduction provided in § 26-26-1118.
  2. 1. After receipt of the certification from the county collectors, the Chief Fiscal Officer of the State shall determine the proportionate share of the total statewide reduction attributable to each county.
    2. 1. At the end of each month, the Chief Fiscal Officer of the State shall determine the balance in the Property Tax Relief Trust Fund and certify it to the Treasurer of State.
      2. The Treasurer of State shall make distributions from the Property Tax Relief Trust Fund to each county treasurer in accordance with the county's proportionate share of the total statewide property tax reduction for that calendar year resulting from the provisions of § 26-26-1118.
      3. Effective January 1, 2006, the Treasurer of State shall make a monthly distribution from the Property Tax Relief Trust Fund to each county treasurer.
        
        The distributions for January, February, and March shall be in accordance with the county's proportionate share of the total statewide property tax reduction as of the final county certification of the previous year.
        
        Beginning in April of each year, the distribution from the Property Tax Relief Trust Fund to each county treasurer shall be in accordance with the county's proportionate share of the total statewide property tax reduction for that calendar year under § 26-26-1118.
    3. 1. If the Chief Fiscal Officer of the State has not received all of the certifications from the county collectors, then the distribution of the Property Tax Relief Trust Fund shall be as follows until all certifications have been received:
        
        The total amount of the Property Tax Relief Trust Fund to be distributed shall equal the total amount in the Property Tax Relief Trust Fund multiplied by the proportion of the previous year's total property assessment, less tangible personal property and property owned by utilities and regulated carriers, of the counties that have certified, divided by the previous year's total property assessment, less tangible personal property and property owned by utilities and regulated carriers in the state; and
        
        Each county that has certified its property tax reduction shall receive an amount of the Property Tax Relief Trust Fund, as adjusted in subdivision (a)(2)(C)(i)(a) of this section, equal to the county's proportionate share of the total property tax reduction of the counties that have certified their property tax reductions.
      2. However, until all counties have certified their property tax reductions to the Chief Fiscal Officer of the State, no county shall receive more than seventy-five percent (75%) of its certified property tax reduction.
  3. 1. 1. Funds so received by the county treasurers shall be credited to the county property tax relief fund.
      2. Ninety-six percent (96%) of the funds shall be allocated and distributed to the various taxing entities within the county that levy ad valorem taxes.
      3. The allocation shall be based on a certification from the county collector of the amount of the real property tax reduction per taxing entity provided in § 26-26-1118.
      4. The four percent (4%) retained in the county property tax relief fund is the commission of the county collector as authorized under § 21-6-305(a)(4).
        
        This commission shall become a part of the total commission of the county collector.
      5. These funds are subject to § 21-6-305(d).
    2. Funds so received by the various taxing units shall be used for the same purposes and in the same proportions as otherwise provided by law.
2. 1. Distributions to each county shall continue on a monthly basis from the Property Tax Relief Trust Fund until the full amount certified by the county collectors, as of November 15 of each year, has been paid.
  2. 1. In no event shall the amount distributed to a county during a calendar year from the Property Tax Relief Trust Fund exceed the final amount certified by the county collector as of November 15 as the property tax reduction for that calendar year resulting from § 26-26-1118.
    2. If a county is paid in excess of its proportionate share, the Chief Fiscal Officer of the State may reduce payments made to the county for the subsequent calendar year until the overpayment is recovered.
    3. 1. On or before December 31 of each year, the Chief Fiscal Officer of the State, in cooperation with the Legislative Council and the Legislative Auditor, shall determine that portion of the balance remaining in the Property Tax Relief Trust Fund that is in excess of the required reimbursement to the counties and shall certify the excess to the Treasurer of State.
      2. Beginning December 31, 2005, and on December 31 of each subsequent year, the Treasurer of State shall:
        
        Calculate each county's proportionate share of one million dollars ($1,000,000) based on the proportions used to reimburse the county for property tax reductions under subsection (a) of this section;
        
        Transfer the amount calculated under subdivision (b)(2)(C)(ii)(a) of this section to the county treasurer for allocation to the county assessor for use by the county assessor for the costs of administering Arkansas Constitution, Amendment 79, including without limitation costs for personnel, equipment, services, and postage used in the administration of Arkansas Constitution, Amendment 79;
        
        Distribute two million dollars ($2,000,000) from the Property Tax Relief Trust Fund to the counties in the state using the formula stated in § 19-5-602(c)(1); and
        
        Distribute two million dollars ($2,000,000) from the Property Tax Relief Trust Fund to the municipalities in the state using the formula stated in § 19-5-601(c).
    4. 1. For calendar year 2019, by the last business day of each month following April 9, 2019, the Chief Fiscal Officer of the State shall certify to the Treasurer of State the total amount of moneys credited to the Property Tax Relief Trust Fund since April 9, 2019.
        
        For calendar years after 2019, by the last business day of each month, the Chief Fiscal Officer of the State shall certify to the Treasurer of State the total amount of moneys credited to the Property Tax Relief Trust Fund for the year.
      2. The Chief Fiscal Officer of the State shall determine annually the estimated amount needed to fund the distributions required under subdivision (b)(2)(C) of this section for the next year.
      3. When the amount certified by the Chief Fiscal Officer of the State under subdivision (b)(2)(D)(i) of this section exceeds the amount determined under subdivision (b)(2)(D)(ii) of this section for the year:
        
        By July 1, 2019, the Treasurer of State shall make a one-time transfer of eight million two hundred forty-six thousand five hundred seventy-three dollars ($8,246,573) to the County Voting System Grant Fund.
        
        The transfer required under subdivision (b)(2)(D)(iii)(a)(1) of this section shall occur as soon as practicable after July 1, 2019, if, by July 1, 2019, the amount certified by the Chief Fiscal Officer of the State under subdivision (b)(2)(D)(i) of this section does not exceed the amount determined under subdivision (b)(2)(D)(ii) of this section by the full amount required for the transfer under subdivision (b)(2)(D)(iii)(a)(1) of this section; and
        
        Except as provided in subdivision (b)(2)(D)(iii)(a) of this section, the revenues credited to the Property Tax Relief Trust Fund in excess of the amount determined under subdivision (b)(2)(D)(ii) of this section shall be transferred from the Property Tax Relief Trust Fund to the Long Term Reserve Fund.
  3. 1. The Legislative Auditor or his or her designee shall audit the books and records of the county assessor, county collector, or any other party as needed to ensure that the amount of the property tax reduction certified by the county collector is accurate.
    2. The Chief Fiscal Officer of the State may adjust the amount certified by the county collector if it is discovered that the certified amount is incorrect.
3. 1. On or before June 30 and November 15 of each year, the county collector of each county shall recertify to the Chief Fiscal Officer of the State the amount of the real property tax reduction provided in § 26-26-1118.
  2. The recertification shall reflect the most current total of tax reductions based on corrections and amendments to the records of the county assessor.
  3. After receipt of the recertification from the county collectors, the Chief Fiscal Officer of the State shall redetermine the proportionate share of the total statewide reduction attributable to each county.
1. For purposes of Arkansas Constitution, Amendment 79, and any laws of this state referencing countywide reappraisals of property for property taxation purposes, a countywide reappraisal of property shall be deemed to have been completed on the date that the county collector's books are open for collection on the newly appraised values.
2. This section does not prohibit any increases allowed by the Arkansas Constitution.
1. 1. Whenever a countywide reappraisal or reassessment of property subject to ad valorem taxes, made in accordance with procedures established in this subchapter and with rules of the Assessment Coordination Division, or its successor agency, adopted pursuant to the authority granted in this section shall result in an increase in the aggregate value of taxable real and personal property in any taxing unit in this state of ten percent (10%) or more over the previous year, the rate of city or town, county, school district, and community college district taxes levied against the taxable real and personal property of each taxing unit shall, upon completion of the reappraisal or reassessment, be adjusted or rolled back by the governing body of the taxing unit for the year for which levied as provided.
  2. The adjustment or rollback of tax rates or millage for the base year as defined in subdivision (a)(5) of this section shall be designed to assure that each taxing unit will receive an amount of tax revenue from each tax source no greater than ten percent (10%) above the revenues received during the previous year from each tax source, adjusted for any lawful tax or millage rate increase or reduction imposed in the manner provided by law for the year for which the tax adjustment or rollback is to be made, and after making the following additional adjustments:
    1. By excluding from calculation the assessed value of, and taxes derived from, tangible personal property assessed in the taxing unit and all real and tangible personal property of public utilities and regulated carriers assessed in the taxing unit; and
    2. 1. By computing the adjusted or rollback millage rates on the basis of the reassessed taxable real property for the base year that will produce an amount of revenue no greater than ten percent (10%) above the revenues produced from the assessed value of real property in the taxing unit after making the aforementioned adjustments for personal properties and properties of public utilities and regulated carriers as provided in subdivision (a)(2)(A) of this section from millage rates in effect in the taxing unit during the base year in which the millage adjustment or rollback is to be calculated;
      2. In calculating the amount of adjusted or rollback millage necessary to produce tax revenues no greater than ten percent (10%) above the revenues received during the previous year, the governing body shall separate from the assessed value of taxable real property of the taxing unit, newly discovered real property and new construction and improvements to real property, after making the adjustments for personal property or property of public utilities and regulated carriers as provided in subdivision (a)(2)(A) of this section, and shall compute the millage necessary to produce an amount of revenues equal to, but no greater than, the base year revenues of the taxing unit from each millage source. Such taxing unit may elect either to obtain an increase in revenues equal to the amount of revenues that the computed or adjusted rollback millage will produce from newly discovered real property, new construction, and improvements to real property, or, if the same is less than ten percent (10%), the governing body of the taxing unit may recompute the millage rate to be charged to produce an amount no greater than ten percent (10%) above the revenues collected for taxable real property during the base year.
  3. The amount of revenues to be derived from taxable personal property assessed in the taxing unit for the base year, other than personal property taxes to be paid by public utilities and regulated carriers in the manner provided, shall be computed at the millage necessary to produce the same dollar amount of revenues derived during the current year in which the base year adjustment or rollback of millage is computed, and the millage necessary to produce the amount of revenues received from personal property taxes received by the taxing unit, for the base year shall be reduced annually as the assessed value of taxable personal property increases until the amount of revenues from personal property taxes, computed on the basis of the current year millage rates, will produce an amount of revenues from taxable personal property equal to or greater than that received during the base year, and thereafter the millage rates for computing personal property taxes shall be the millage rates levied for the current year.
  4. The taxes to be paid by public utilities and regulated carriers in the respective taxing units of the several counties of this state during the first five (5) calendar years in which taxes are levied on the taxable real and personal property as reassessed and equalized in each of the respective counties as a part of a statewide reappraisal program shall be the greater of the following:
    1. The amount of taxes paid on property owned by such public utilities or regulated carriers in or assigned to the taxing unit, less adjustments for properties disposed of or reductions in the assessed valuation of such properties in the base year as defined below; or
    2. The amount of taxes due on the assessed valuation of taxable real and tangible personal property belonging to the public utilities or regulated carriers located in or assigned to the taxing unit in each county at millage rates levied for the current year.
  5. 1. As used in this section, “base year” means the year in which a county completes reassessment and equalization of taxable real and personal property as a part of a statewide reappraisal program and extends the adjusted or rolled back millage rates for the first time, as provided in subdivision (a)(1) of this section, for the respective taxing units in that county for collection in the following year.
    2. In the event the amount of taxes paid the taxing unit in a county in the base year, as defined in this subdivision (a)(5), is greater than the taxes due to be paid to such taxing unit for the current year of any year of the second period of five (5) years after the base year, the difference between the base-year taxes and the current year taxes for any year of the five-year period shall be adjusted as follows:
    3. If the current-year taxes of a public utility or regulated carrier equal or exceed the base-year taxes due a taxing unit during any year of the first ten (10) years after the base year, the amount of taxes to be paid to the taxing unit shall thereafter be the current-year taxes, and the adjustment authorized in this section shall no longer apply in computing taxes to be paid to such taxing unit.
  6. In the event the requirement for payment of taxes by public utilities and regulated carriers, or any class of utilities or carriers for the ten-year period as provided in subdivision (a)(5)(C) of this section shall be held by court decision to be contrary to the constitution or statutes of this state or of the United States Government, all utilities and all classes of carriers shall receive the same treatment provided or required under the court order for a particular type of carrier or utility if deemed necessary to promote equity between similar utilities or classes of carriers.
2. If it is determined that the adjustment or rollback of millages as provided for in this section will render income from millages pledged to secure any bonded indebtedness insufficient to meet the current requirements of all principal, interest, paying agents' fees, reserves, and other requirements of a bond indenture, any pledged millage shall be rolled back or adjusted only to a level which will produce at least a level of income sufficient to meet the current requirements of all principal, interest, paying agents' fees, reserves, and other requirements of the bond indenture.
3. Pursuant to the application of Arkansas Constitution, Amendment 74, to the rollback provisions of Arkansas Constitution, Amendment 59, for millage rates levied by the various school districts within the county, if it is determined that the adjustment or rollback of millages as provided in Arkansas Constitution, Amendment 59, will result in a tax rate available for maintenance and operation of less than the uniform rate of tax, then the millage shall be rolled back only to the uniform rate of tax plus debt service millage required, and no further.
1. In the base year of an approved countywide reassessment program, the county clerk shall certify the assessed value by taxing unit after the county equalization board hearings and county court hearings, on the first Monday in November.
2. On or before the second Monday in November of the base year, the county clerk shall report to the governing body of each taxing unit the following completed form, accurately listing the required data on each line:
1. 1. The governing body of each taxing unit in the base year of countywide reassessment shall complete the following form and return the form to the county clerk on or before the third Monday in November of the base year, using certified data provided by the county clerk as described in § 26-26-402.
  2. The form shall be signed by the officers of the governing body of each taxing unit.
2. 1. If newly discovered and new construction properties are less than a ten percent (10%) increase in assessments, the governing body of each taxing unit may elect to increase the rolled back millage an amount to allow no more than an overall ten percent (10%) increase in taxes.
  2. If the newly discovered and new construction property list is ten percent (10%) or more above reassessment total, the total amount is allowed; however, no increase in the rolled back millage shall be considered.
3. Each tax source or millage levy shall be computed and rounded up to the nearest one-tenth (1/10) mill.
4. The county clerk shall file and record the completed forms required in § 26-26-403 and this section and shall forward a copy of the forms to the Assessment Coordination Division by December 1 of the base year.
1. Revenues derived from personal property by each taxing unit in the county are to be frozen at the base-year levels. The millage applied to personal property only is then adjusted downwards in the same proportion that the assessment base increases. The current millage is defined as the millage that was used in each taxing unit to derive the base-year revenues for personal property. This procedure shall be followed each year until the personal property millage rate is equal to or lesser than the millage rate applied to real estate, at which time the interim adjustment is complete, and both personal property and real estate shall thereafter be taxed at the same millage rate.
2. In calculating the interim millage, all millage will be rounded up only to the nearest one-tenth (1/10) mill or to four (4) places to the right of the decimal.
3. The adjustment shall be performed by the county clerk at the conclusion of all due process proceedings, or by the second Monday in November, whichever is earlier. The county clerk shall then certify the interim personal property millage rate by taxing unit to the county quorum court by the third Monday in November for certification of all millage rates.
4. The county clerk shall file and record the completed form required by this section. The county clerk shall forward a copy of the form to the Assessment Coordination Division by December 1 of each year where an interim millage is used, or the year of final adjustment.
1. Residential property used solely as the principal place of residence of the owner shall be assessed in accordance with its value as a residence, so long as the property is used as the principal place of residence of the owner and shall not be assessed in accordance with some other method of valuation until the property ceases to be used for the residential purpose.
2. 1. 1. Agricultural land, pasture land, and timberland valuation shall be based on the productivity of the agricultural land, pasture land, or timberland soil.
    2. Agricultural land, pasture land, and timberland guidelines shall be developed based on the typical or most probable use of the soils for agricultural land, pasture land, and timberland in the region.
  2. Land that is enrolled in the Wetlands Reserve Program of the Natural Resources Conservation Service of the United States Department of Agriculture or in the Conservation Reserve Program of the Natural Resources Conservation Service of the United States Department of Agriculture shall be treated as agricultural land, pasture land, or timberland for purposes of valuation.
3. 1. Commercial land and residential land that are vacant shall be valued on their typical use.
  2. The county assessor shall determine what the typical use of vacant commercial land or residential land is by considering the primary current use of adjacent lands.
4. 1. For real property in which the mineral estate and surface estate are severed, if a surface estate owner's use and enjoyment of the surface estate are adversely affected by a severed mineral estate owner's use and enjoyment of the severed mineral estate, or a surface estate owner's utility of the surface estate interest is adversely affected by a severed mineral estate owner's use and enjoyment of the severed mineral estate, the assessment of the surface estate is as follows:
    1. For agricultural land, pasture land, or timberland, a well drilled for the purpose of extracting minerals from a severed mineral estate creates a presumption of diminished utility of the surface estate, and the assessed value of the affected surface estate shall reflect the minimum productivity value of the surface estate and shall be reduced accordingly; and
    2. For residential property and commercial property, a well drilled for the purpose of extracting minerals from a severed mineral estate creates a presumption of diminished utility of the surface estate, and the assessed value of the affected surface estate shall reflect the diminished utility of the surface estate and reduced accordingly.
  2. Unless market evidence indicates an increase in land area value or an increase in value of the surface estate, the portion of the surface estate for which a presumption of diminished utility exists under subdivision (d)(1) of this section shall not exceed one (1) acre per well, and the value of the surface estate for that one (1) acre shall be assessed in an amount not to exceed twenty-five percent (25%) less than surrounding comparable property.
5. 1. The county equalization board may reclassify land upon proof of change in use of the land or upon proof that the land is not eligible for classification under the provisions of this section.
  2. The owner may appeal the decisions of the county assessor and county equalization board as provided by law for other appeals from the county assessor or county equalization board.
6. 1. In devising and developing methods of assessing and levying the ad valorem property tax on real property, the Assessment Coordination Division shall annually develop and publish valuation tables and other data that shall be used by county assessors for assessing lands qualifying under this subchapter.
  2. 1. Each year the division shall update the valuation tables for assessing lands qualifying as agricultural land, pasture land, and timber land in time for counties to use the updated tables when they finish their countywide appraisals.
    2. When there is a countywide reappraisal, a county shall assess agricultural land, pasture land, and timberland based upon the updated land values in the valuation tables issued for the assessment year.
  3. 1. The division by rule shall develop appropriate formulas reflecting the productivity valuation of the land based upon income capability attributable to agricultural land, pasture land, and timberland soils.
    2. Each year the division shall develop and calculate capitalization rates by using appropriate long-term federal security rates, risk rates, management rates, and other appropriate financial rates.
    3. However, the capitalization rate developed under subdivision (f)(3)(B) of this section shall not be less than eight percent (8%) nor more than twelve percent (12%).
  4. By October 15 of each year, the division shall report to the Legislative Council any changes to any part of the formula used to determine the value of land or the capitalization rate.
7. 1. Whenever land that has qualified for valuation on use or productivity under subsection (b) of this section is converted to another use, the person converting the land to another use shall notify, immediately and in writing, the county assessor of the change in use.
  2. At the appropriate time, the county assessor shall extend the taxes on the land based on the change in use and shall certify to the county collector the amount to be collected.
8. 1. If any person fails to give written notice of a change in use of land as required in subsection (g) of this section, the person shall be subject to a penalty in an amount equal to three (3) years of taxes on the land at the value in the new use or conversion use.
  2. Any penalty so assessed shall be included in the taxes on the land for the year in which the failure is discovered and shall be a lien on the land to the same extent as any other taxes levied on the land.
9. Any funds derived from penalties assessed pursuant to subsection (h) of this section shall be deposited into the county general fund to be used for the purposes prescribed by law.
1. As used in this section, “fringe school districts” means those school districts whose boundaries extend across one (1) or more county lines.
2. When there is a statewide or countywide reappraisal of property for ad valorem tax purposes pursuant to court order or pursuant to law enacted by the General Assembly, the millage rollback for fringe school districts will be implemented as follows: That part of the school district in a county reappraised first will be rolled back in accordance with procedures prescribed in this subchapter, and taxes will be levied at that millage rate until such time as a similar reappraisal is completed in the other counties in which the school district lies and the millage in those counties is rolled back in accordance with this subchapter at which time the rolled back millage for the first part of the school district that has been reappraised and the rolled back millage for each succeeding part of the school district that has been reappraised shall be averaged, weighted by the percentage of the total assessment of the school district that each part consists of in order to create a weighted average millage, and thereafter the weighted average millage for the school district will be the millage rate levied in the whole school district.
1. The county assessor in each county may employ such personnel as the county assessor deems necessary to reappraise taxable property in the county in compliance with the court order in Arkansas Public Service Commission, et al. v. Pulaski County Board of Equalization, et al. and to thereafter maintain a proper appraisal of property in the county.
2. 1. 1. The Assessment Coordination Division shall prescribe an appropriate course of training to qualify persons employed by elected county assessors to conduct appraisals of property for ad valorem tax purposes and shall issue a certificate of qualification to each person who successfully completes the course of training or is otherwise determined by the division to be qualified to conduct appraisals.
    2. 1. Only those persons who hold certificates of qualification issued by the division as provided for in this section shall be employed by the elected county assessors for or undertake the appraisal of property for ad valorem tax purposes in any county.
      2. This section only applies to persons employed by elected county assessors, and the elected county assessors are not themselves required to be certified by the division.
  2. The division shall seek the advice of the Legislative Council prior to the final adoption of training criteria for persons to be employed by county assessors to appraise property for ad valorem tax purposes.
1. 1. The Arkansas Public Service Commission shall prepare and furnish, at the proper time, to the county clerks in this state copies for all lists, blanks, and records to be used in the assessment, extension, and collection of taxes, and the county clerk shall have all lists, blanks, and records made at the expense of the county.
  2. This subsection shall not apply to poll tax receipts.
  3. No lists, blanks, or records shall be used by any official in the assessment, extension, or collection of taxes except as shall have had the approval of the commission.
2. On or before January 1 of each year, the county clerk shall furnish to the county assessor all lists, blanks, and records necessary for the assessment of all real and personal property for the year, all of them to be prepared as provided by law unless otherwise directed by the commission.
1. On or before January 1 of each year, the county clerk of each county shall make out and deliver to the county assessor, in books prepared for that purpose, an abstract containing a description of each tract or lot of land situated within the boundaries of any city or town and additions thereto which have been regularly platted into lots and blocks. In the case of real estate situated within the boundaries of any city or town and additions thereto which have been regularly platted into lots and blocks, the county clerk shall proceed according to the plan or plat thereof, commencing with the lowest number of the block and lot of each city, town, or addition and proceed numerically with all lots in a block and all blocks in a city, town, or addition until completed.
2. On or before January 1 of each year, the county clerk shall make out and deliver to the county assessor, in books prepared for that purpose, an abstract containing a description of each tract of land situated outside the boundaries of any city or town and additions thereto which have been regularly platted into lots and blocks. In case of acreage land, he or she shall commence the abstract in the lowest number in township and range in his or her county, and in the northeast corner of each township, and shall proceed numerically with all sections, townships, and ranges in his or her county first setting down all the subdivisions of each section as they belong to different individuals or the whole section together if owned by one (1) person and not divided on account of parcels being of different value.
3. The abstract in each case shall show the name of the owner, if known, and the number of acres or quantity of land contained in each call.
4. No failure to observe any of these requirements shall be held to vitiate any assessment if the lands are so described as to be identified.
1. To facilitate the assessment and collection of taxes, the county court of each county shall procure and keep a land book or books of maps of all the townships or fractional townships in the county. The book shall be well-bound and shall be deposited in the office of the county clerk.
2. The court shall also procure a list of the lands owned by the United States and by this state in their respective counties.
1. The school directors of each and every school district in the state shall furnish to the county assessor a complete list, showing addresses alphabetically arranged, of all persons who under the law should be taxpayers in the school district.
2. The various school boards are authorized to pay out of the school funds of the district the expense incurred in the preparation of the list.
1. The Secretary of the Department of Finance and Administration shall institute a system in which the county assessor and the county collector shall notify the secretary that a vehicle owner has assessed a vehicle and has paid all personal property taxes that were due by the preceding October 15. Upon receipt of the notification, the secretary shall renew the vehicle license.
2. Notification by the county assessor and the county collector under subsection (a) of this section shall be in the form of an electronic notation placed on or removed from the Department of Finance and Administration's vehicle license record by the county assessor and the county collector denoting that the vehicle has been assessed and that the vehicle owner does not owe delinquent personal property taxes.
1. The county recorder of deeds and mortgages in each county shall, each year, prepare and file with the county assessor a list, alphabetically arranged in the name of the grantor, or a copy of the following which were recorded during the year, to wit:
  1. All deeds, mortgages, and contracts for the sale of realty;
  2. All timber deeds or contracts, or mineral or royalty deeds; and
  3. All leases or contracts of every kind, whether oil and gas or other things leased.
2. If a list is furnished, it shall reflect the last known business address of the person owning the rights under the contract, deed, or lease, the date, and the consideration.
1. When an instrument for the conveyance of real estate, save mortgages and deeds of trust, is tendered to the county recorder for recording, that official shall obtain from the person tendering the instrument the name of the grantee and the address to which the grantee wants future tax statements mailed.
2. At least weekly the county recorder shall transmit the duplicate statements to the county assessor, who shall keep the original and immediately transmit the copy to the county clerk, together with his or her instructions as to any change in legal description or separation of parcel as they then appear on the tax books.
3. In counties operating under the unit tax ledger system, the county assessor shall immediately transmit the copy to the county collector, together with his or her instructions as to any change in legal description or separation of parcel as they then appear on the tax books.
4. Both the county assessor and the county clerk shall make proper entry of the information so received into their permanent records.
5. Where a plat is offered for record to the county recorder, the person so offering the plat shall tender to the circuit clerk the original for recording and one (1) copy of the plat, which shall be certified to by the circuit clerk, showing the book and page of the records wherein the original is recorded. The certified copy shall be transmitted by the circuit clerk to the county assessor within five (5) days from the date of recording.
1. Any person, partnership, company, or corporation having any person in their employ shall be required to give the name of the employee to the county assessors, county sheriffs, or county collectors of the various counties when demanded by the county assessors, county sheriffs, or county collectors in their official capacity.
2. Any person, partnership, company, or corporation, their agents, attorneys, or managers that violate this section shall be guilty of a violation and shall be fined in any sum not less than ten dollars ($10.00) nor more than one hundred dollars ($100).
1. All lists required in §§ 26-26-705, 26-26-707, and 26-26-708 by clerks, school directors, and others shall be filed with the county assessors of the various counties on the first Monday in January of each year.
2. The lists shall be filed in triplicate:
  1. One (1) to be forwarded by the county assessor to the Arkansas Public Service Commission;
  2. One (1) to be filed with the county clerk; and
  3. One (1) to be retained by the county assessor.
3. 1. The list retained by the county assessor shall be checked by him or her and used in his or her endeavor to place all taxable property on the books.
  2. When the county assessor's books are closed, the county assessor shall certify all of the lists to the county court, and the certificate shall show whether the individuals have made an assessment and if not, why not, and what effort the county assessor has put forth in each case to secure an assessment by each individual on the lists.
4. 1. Upon conviction, any individual, school director, tax commissioner, county assessor, or other person charged with a duty under this section who fails to perform the duty is guilty of a violation and shall be fined in any sum not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000).
  2. Upon conviction for a second offense, in the case of any public official, the public official shall be removed from office.
5. The commission shall prepare such forms as will ensure the effective execution of this section.
1. The original assessment lists as made out, sworn to, and delivered to the county assessor by any person or property owner of the county and assessment lists made by the county assessor prior to the date on which the assessment rolls are delivered to the county clerk, together with copies of all assessment lists as made out, sworn to, and delivered to the county clerk by the county assessor or any other person after the assessment rolls have been delivered to the county clerk and before the county collector closes his or her books, shall remain in the office of the county assessor for at least four (4) years after the date upon which they were made, during which time the lists shall be filed by the county assessor in such manner that they may be readily referred to and utilized.
2. Copies of all assessment lists as made by the county assessor or any other person subsequent to the date on which penalty attached for failure to assess and before the assessment record is required to be filed with the county clerk shall be delivered to the county clerk at the same time the assessment record is filed, which lists, together with the original of all assessment lists as may be filed with the county clerk by the county assessor or any other person after the assessment record has been delivered to the county clerk and before the county collector closes his or her books, shall be preserved by the county clerk for the purpose of checking the tax books to determine if all penalties for failure to assess at the proper time have been properly designated and extended.
1. 1. 1. Each year, the county assessor shall, on or before the third Monday in August, file with the county clerk his or her report of assessment of all real property of the county situated within the boundaries of any city or town and additions thereto which have been regularly platted into lots and blocks.
    2. Each year, the county assessor shall, on or before the third Monday in August, file with the county clerk his or her report of assessment of all real property of the county situated outside the boundaries of any city or town and additions thereto which have been regularly platted into lots and blocks.
  2. On or before July 31, the county assessor shall deliver the personal property assessment report or roll book to the county clerk, to be arranged in alphabetical order according to school districts and showing separately in alphabetical order the persons residing outside of incorporated cities and towns and of persons who are residents of incorporated cities and towns of the same school district.
  3. In addition to the other requirements of this section, the county assessors shall be required to list poll and personal property owners to the respective political township and ward in which they reside at the time of the assessment.
2. 1. These reports shall be filed in books or records of the kind and character furnished to the county assessor by the county clerk for that purpose, unless otherwise directed by the Arkansas Public Service Commission, and each report shall show each item of property by totals in number and value.
  2. The county clerk shall not receive these reports unless they are in a neat and legible manner, and to each of which the county assessor shall have attached his or her oath in the following words:
1. 1. 1. It shall be the duty of each county assessor to make out, from such sources of information as shall be in his or her power, a correct and pertinent description of each tract or lot of real property in his or her county, so that it can be identified and distinguished from any other tracts or parts of tracts.
    2. The county assessor shall place a value on each subdivision of a block, and the improvements thereon, in cities and towns, or additions thereto, notwithstanding the fact that one (1) individual owns the whole block.
  2. 1. When the county assessor shall deem it necessary to obtain an accurate description of any separate tract or lot in his or her county, he or she may require the owner or occupier to furnish it with any title papers he or she may have in his or her possession.
    2. 1. If the owner or occupier, upon demand made for it, shall neglect or refuse to furnish a satisfactory description of the parcel of real property to the county assessor, he or she may employ the county surveyor to make out a description of the boundaries, and location thereof, and a statement of the quantity of land therein.
      2. The expense of the survey shall be returned by the county assessor to the county clerk, who shall add the expense of the survey to the tax assessed upon the real property, and it shall be collected by the county collector of the county with the tax. When collected, it shall be paid on demand to the person to whom it is due.
2. 1. The county assessor shall, in all cases, from actual view or from the best sources of information within his or her reach, determine, as near as practicable, the true value of each separate tract and lot of real property in his or her county, according to the rules prescribed by this chapter for valuing property.
  2. The county assessor shall note in his or her plat book, separately, the value of all houses, mills, and other buildings which shall be carried out as a part of the value of the tracts.
1. 1. It is the duty of a county assessor to strictly follow the provisions of § 26-26-717.
  2. When it is otherwise impossible to correctly describe real property on the assessment roll according to its ownership, it is the duty of a county assessor to petition the county court for a survey of the real property under the provisions of § 26-26-802.
2. 1. In any case where a tract of land is irregularly described, the county assessor must require the owner to bring in his or her deed.
  2. The tract of land must then be taken from the deed, and the tract of land to be assessed must be platted on a plat book furnished the county assessor by the county court of each township in the county.
  3. The county assessor shall draw a plat of the tract of land and shall number it as “Lot No. ” and then enter the tract of land on the assessment book as “Lot No. of ” describing the section or portion of the section in which the tract of land is found.
3. It shall be sufficient to advertise the tract of land for failure to pay taxes by the number of the lot assigned to the tract of land.
4. 1. If for any reason a part description of the real property assessed is made by the county assessor, the reason must be stated, and the county assessor shall immediately certify his or her inability to properly describe the real property to the Commissioner of State Lands on or before October 1 in each year.
  2. 1. The Commissioner of State Lands shall assemble the certificates of part description received from the county assessors and certify them to the Attorney General, who shall file his or her petition in the circuit court having jurisdiction.
    2. The circuit court is vested with jurisdiction upon the petition to issue any form or writ necessary for ascertaining the correct ownership description of the real property involved.
5. Upon petition of the Attorney General addressed to the circuit court having jurisdiction, any county assessor who shall fail or refuse to comply with the provisions of § 26-26-718 and this section shall be removed from office and shall only be reinstated when he or she has performed the duties enjoined but shall receive no compensation for correcting any of his or her acts of omission or commission.
1. 1. It shall be the duty of the county assessor of each county of the State of Arkansas, after extending the valuation against each parcel of land, lot, and part of lot on his or her assessment record to check it, and for all land, lots, and parts of lots that have been certified to the Commissioner of State Lands for the nonpayment of the delinquent taxes due, he or she shall stamp or write by the valuation “State of Arkansas”, and also the year which it was certified to the state.
  2. The county assessor shall take the list of the land, lots, and parts of lots that have been redeemed or purchased which is certified to the county clerks by the Commissioner of State Lands January of each year and show on his or her assessment record the disposition of the land, lots, and parts of lots.
2. If the county assessor of the various counties of the State of Arkansas needs a starting point, he or she can write the Commissioner of State Lands for a list of the forfeited land, lots, and parts of lots in his or her county. Upon such request, the Commissioner of State Lands shall furnish him or her with a correct list of the forfeited land, lots, and parts of lots that have not been redeemed or sold in his or her office. The county clerks of the various counties of the State of Arkansas shall furnish the county assessor a list of the forfeited land, lots, and parts of lots that he or she sends to the Commissioner of State Lands yearly. In this way, the county assessor will have a complete record of the forfeited land, lots, and parts of lots for his or her assessment record.
1. It is made the duty of the county clerks to promptly notify the county surveyors of their respective counties of all orders made by their respective county courts in pursuance of this subchapter.
2. It is the duty of the county recorder of every county to provide and keep in his or her office a record book to be entitled “Record of Surveyor's Plats and Notes”, in which he or she shall accurately record or make a fair copy and transcript of every plat and the notes accompanying it returned to him or her by the county surveyor, as provided in this subchapter.
1. Whenever it shall be made to appear to the satisfaction of the county court of any county that any section, or part of section of land in the county is in such small or irregular subdivisions as respects ownerships thereof, that the subdivisions or any of them cannot be accurately or conveniently designated in the assessment list or tax list in the usual or ordinary manner of designating subdivisions of land, it shall be the duty of the county court to order the county surveyor of the county to make and return to the county recorder of the county a plat, with accompanying marginal notes or footnotes, of the section or part section, whereupon it shall be the duty of the county surveyor to promptly comply with and obey such orders.
2. In the plats and by the marginal or footnotes which he or she shall make and return, he or she shall show the relative size and position of the several subdivisions and the area of each, which subdivisions shall be designated as “lots” and shall be numbered consecutively in like manner and order, insofar as practicable, as is done in the case of fractional sections in the surveys and plats made under the direction of the United States Bureau of Land Management.
1. The county assessors, deputy county assessors, and Arkansas Public Service Commission, or any other officer charged under the law with assessing taxes, shall, when each and every person presents himself or herself to make and prepare a property list, administer the following oath:
2. Provided, however, this oath shall not be required of any individual assessing his or her real or personal property by telephone under § 26-26-1114 or where the county assessor lists the property for the property owner as permitted in § 26-26-903.
1. Every person of full age and sound mind shall list the real property of which he or she is the owner, situated in the county in which he or she resides, and the personal property of which he or she is the owner.
2. The county assessor may relieve the person of this requirement by listing the current year's assessment of real property from a previous property list or from a changed list based on a reassessment of the value of the real property of the owner.
1. Property held under a lease for a term exceeding ten (10) years belonging to a religious, scientific, or benevolent society or institution, whether incorporated or unincorporated, and school, seminary, saline, or other lands shall be considered, for all purposes of taxation, as the property of the person holding them and shall be listed as such by the person or his or her agent, as in other cases.
2. 1. For purposes of assessing and collecting ad valorem tax, property owned by the state shall be considered the property of the lessee if the property is held under a lease for:
    1. An ongoing commercial or residential purpose; and
    2. A term of actual use or occupation that exceeds ninety (90) days.
  2. Except as provided in this subsection, a lessee of property owned by the state as described under subdivision (b)(1) of this section shall pay ad valorem tax on the property held under the lease for any tax year during which the lease for the property is in effect as of January 1 of that tax year.
  3. 1. Within thirty (30) days of executing a lease described in subdivision (b)(1) of this section, the state shall provide written notification of the lease to the county assessor for the county in which the lease property is located.
    2. The written notification required under subdivision (b)(3)(A) of this section shall state the:
      1. Name and address of the lessee;
      2. Term of the lease; and
      3. Description of the leased property.
  4. This subsection does not apply to property owned and leased by the state and used:
    1. For the purpose of housing any one (1) or more of the following:
      1. Students or faculty, or both, of a state institution of higher education;
      2. Officials or employees, or both, of a state entity; or
      3. Official guests of a state entity;
    2. By a private person or entity for the purpose of providing a service to or on behalf of a state entity;
    3. For academic, research, or athletic facilities or purposes;
    4. For business and technology incubators or similar facilities;
    5. For manufacturing or industrial facilities or purposes, including without limitation industrial facilities as described in § 14-164-701; or
    6. By a state entity or nonprofit entity, including without limitation an organization that is otherwise exempt from taxation.
1. If any person shall have converted moneys, credits, or other personal property in the year preceding January 1 of the year in which he or she is required to assess his or her property into bonds or other securities of the United States or this state not taxed, and shall hold or control the bonds or securities when he or she is required to list his or her property, he or she shall list the monthly average value of the moneys, credits, or other property held or controlled by him or her.
2. Any indebtedness of the persons represented by him or her, created by investment in the bonds or other securities, shall not be deducted from the amount of credits in making up his or her list for taxation.
1. No person shall be required to list a greater portion of any credits than he or she believes will be acquired or can be collected, nor any greater portion of any obligation given to secure the payment of rent than the amount of rent that shall have accrued on the lease and shall remain due and unpaid at the time of listing.
2. No person shall be required to include in his or her statement, as a part of the personal property, moneys, credits, investments in bonds, stocks, joint-stock companies, or otherwise, which he or she is required to list, any share or portion of the capital stock or property of any company or corporation which is required to list or return its capital and property for taxation in this state.
1. 1. The valuations as set out in any assessment list required under the provisions of this subchapter to be delivered to the county assessor by the property owner shall not be held to be conclusive as to the value of the property so listed, and the county assessor may make such assessment of the property as he or she may deem just and equitable.
  2. 1. The county assessor, in each instance where he or she raises the valuation of any property which has been listed with him or her as by law required, shall deliver to the property owner or his or her agent a duplicate copy of the adjusted assessment list, or he or she shall notify the property owner or his or her agent by first class mail, which notice shall state separately the total valuation of real and personal property as listed by the property owner and as fixed by the county assessor, and shall advise that the owner may, by petition or letter, apply to the county equalization board for the adjustment of the assessment as fixed by the county assessor.
    2. All applications shall be made to the county equalization board on or before the third Monday in August.
2. 1. For the purpose of enabling the county assessor to determine just and equitable values of property, he or she is authorized, and it shall be his or her duty, to enter upon and make such personal inspection thereof as he or she shall deem necessary.
  2. Any person shall, when called upon by the county assessor, be required to answer upon oath and furnish proof demanded as to purchases, sales, transfers, improvements, accounts, notes, stocks, bonds, bank notes, bank deposits, invoices, insurance carried, or any and all other information requested and pertaining to the location, amount, kind, and value of his or her own property or that of another person.
1. The Arkansas Public Service Commission, the county assessor, or any one of them who may be required under the law to make assessment rolls shall, in addition to their duties as required by law, specifically inquire of the maker of each list the following:
  1. The number, kind, and value of each automobile he or she owns;
  2. The cash or funds on hand, and money on time deposit or otherwise in any depository, in or out of the state;
  3. The taxable securities of every kind and their value, in or out of the state, he or she may own;
  4. What stock, bonds, or mortgages owned and their value, in or out of the state;
  5. What leases or mineral deeds are owned and the value of them that are contemplated in §§ 26-26-1109 and 26-26-1110;
  6. What timber, deeds, or contracts contemplated by § 26-3-205 he or she owns and the value of them; and
  7. Any other property of any kind whatsoever that has a value about which questions have not been asked.
2. The taxpayer shall then be required to assess the properties disclosed by investigation.
1. If any person required to list property for taxation is prevented by sickness or absence from giving to the county assessor the list of property as prescribed by this subchapter, the person, or his or her agent having charge of the property, may, at any time before the making out of the tax books by the county clerk, make out and deliver to the county assessor of the county a statement of the same as required by this subchapter. The county assessor shall in such case make an