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26-51-202. Nonresidents — Definitions.

Arkansas Code — all titles (historical 2020) · legal_authorities

26-51-202. Nonresidents — Definitions.

Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-202

Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.

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Stable record: arkansas_code:legal_authorities:26-51-202
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 6bc2f66c5ca04942d1a643e037d87e4f356840555eba932398cc1f7457515757

Source location: content.xml paragraph 11351

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26-51-202. Nonresidents — Definitions. (a) A tax is imposed and shall be assessed, levied, collected, and paid annually at the rates specified in § 26-51-201 upon and with respect to the entire net income as defined in this chapter, except as provided in this section, from all property owned and from every business, trade, or occupation carried on in this state by individuals, corporations, partnerships, trusts, or estates not residents of the State of Arkansas. (b)(1) Each nonresident as defined in § 26-51-102 shall file income tax returns with the State of Arkansas and pay the tax without distinction, or incident to the laws of the nonresident's resident state. (2) It is the specific intention of the General Assembly that the tax shall be collected from property owned and from the conduct of every business, trade, or occupation, whether or not the individuals, corporations, partnerships, trusts, or estates are qualified to do business in the State of Arkansas and whether or not such business, trade, or occupation shall be conducted in interstate commerce. (c) However, the payment of the tax shall be based upon net income properly allocated as net income arising from the ownership of property and the conduct of a business, trade, or occupation in the State of Arkansas. (d) Additionally, no income tax shall be due the State of Arkansas from a nonresident beneficiary on income received from a trust or estate being administered by a resident trustee or personal representative except on income derived by the trust or estate from: (1) Lands situated in this state, including gains from any sale of the lands situated in this state; (2) Any interest in land situated in this state, including, without limitation, chattels real, including gains from any sale of an interest in land situated in this state; (3) Tangible personal property located in Arkansas, including gains from any sale of the tangible personal property located in Arkansas; and (4) Unincorporated businesses domiciled in Arkansas. (e)(1) No income tax shall be due the State of Arkansas from a nonresident partner with respect to that partner's distributive share of dividends, interest, or gains and losses from qualifying investment securities owned by an investment partnership, whether or not the partnership has a usual place of business located in this state. (2) As used in this subsection: (A) “Investment partnership” means a partnership that meets both of the following requirements: (i) No less than ninety percent (90%) of the value of the partnership's total assets consists of qualifying investment securities and office space and equipment reasonably necessary to carry on its activities as an investment partnership; and (ii) No less than ninety percent (90%) of its gross income consists of interest, dividends, and gains from the sale or exchange of qualifying investment securities; and (B)(i) “Qualifying investment securities” includes all of the following: (a) Common stock, including preferred or debt securities convertible into common stock, and preferred stock; (b) Bonds, debentures, and other debt securities; (c) Deposits and any other obligations of banks and other financial institutions; (d) Stock and bond index securities, futures contracts, options on securities, and other similar financial securities and instruments; and (e) Other similar or related financial or investment contracts, instruments, or securities. (ii) “Qualifying investment securities” shall not include an interest in a partnership unless that partnership is itself an investment partnership. (3)(A) The provisions of subdivision (e)(1) of this section shall not apply to income derived from investment activity that is interrelated with any trade or business activity of the nonresident or an entity in which the nonresident owns an interest in this state, whose primary activities are separate and distinct from the acts of acquiring, managing, or disposing of qualified investment securities, or if those securities were acquired with working capital of a trade or business activity conducted in this state in which the nonresident owns an interest. (B) Likewise, the provisions of subdivision (e)(1) of this section shall not apply to corporate partners of an investment partnership except as provided by rules adopted by the Secretary of the Department of Finance and Administration.

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Arkansas Code — all titles (historical 2020) · legal_authorities

26-51-102. Definitions.

26-51-102. Definitions. As used in this chapter, unless the context otherwise requires: (1) “Corporation” includes joint-stock companies or associations and insurance companies; (2) “Domestic”, when applied to any corporation or association, including a partnership, means created or organized in the State of Arkansas; (3) “Fiduciary” means a guardian, trustee, executor, administrator, receiver, conservator, or any person, whether individual or corporate, acting in any fiduciary capacity for any person, trust, or estate; (4) “Fiscal year” means an accounting period of twelve (12) months ending on the last day of any month other than December; (5) “Foreign”, when applied to any corporation or association, including a partnership, means created or organized outside of the State of Arkansas; (6) “Foreign country” means any jurisdiction other than one embraced within the United States; (7) “Income year” means “taxable year” as defined in this section; (8) “Individual” means a natural person; (9) “Nonresident”, when used in connection with the Income Tax Act of 1929, § 26-51-101 et seq., shall apply to any natural person whose domicile is without the State of Arkansas and who maintains a place of abode without this state and spends in the aggregate more than six (6) months of the taxable year without this state; (10) “Paid”, for the purposes of the deductions under the Income Tax Act of 1929, § 26-51-101 et seq., means “paid or accrued” or “paid or incurred”, and the words “paid or accrued” or “paid or incurred” shall be construed according to the methods of accounting upon the basis of which the net income is computed under the Income Tax Act of 1929, § 26-51-101 et seq.; (11) “Person” includes individuals, fiduciaries, partnerships, limited liabili

Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-102

Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 26-51-102. This identifies an authority to review, not proof of applicability.

Arkansas Code — all titles (historical 2020) · legal_authorities

26-51-201. Individuals, trusts, and estates — Definition.

26-51-201. Individuals, trusts, and estates — Definition. (a) For tax years beginning on and after January 1, 2014, a tax is imposed upon, and with respect to, the entire income of every resident, individual, trust, or estate. The tax shall be levied, collected, and paid annually upon the entire net income as defined and computed in this chapter at the following rates, giving effect to the tax credits provided hereafter, in the manner set forth: (1) On the first four thousand two hundred ninety-nine dollars ($4,299) of net income or any part thereof, nine-tenths percent (0.9%); (2) On the next four thousand one hundred dollars ($4,100) of net income or any part thereof, two and five-tenths percent (2.5%); (3) On the next four thousand two hundred dollars ($4,200) of net income or any part thereof, three and five-tenths percent (3.5%); (4) On the next eight thousand four hundred dollars ($8,400) of net income or any part thereof, four and five-tenths percent (4.5%); (5) On the next fourteen thousand one hundred dollars ($14,100) of net income or any part thereof, six percent (6%); (6) On net income of thirty-five thousand one hundred dollars ($35,100) and above, seven percent (7%); (7) Every resident, individual, trust, or estate having net income greater than or equal to twenty-two thousand two hundred dollars ($22,200), but less than or equal to seventy-nine thousand three hundred dollars ($79,300), shall determine the amount of income tax due under this subsection in accordance with the table set forth below: From Less Than or Equal To Rate $0 $4,499 0.75% $4,500 $8,899 2.5% $8,900 $13,399 3.5% $13,400 $22,199 4.5% $22,200 $37,199 5% $37,200 $79,300 5.9% Click to view table. (8) Every resident, individual, trust, or estate having net

Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-201

Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 26-51-201. This identifies an authority to review, not proof of applicability.