Browse Arkansas Code titles and sections
4-31-205. Taxes.
Arkansas Code — all titles (historical 2020) · legal_authorities
4-31-205. Taxes.
(a) No corporation, institution, or entity coming under the provisions of this subchapter and confining its business operations in Arkansas within the limits herein provided shall be required to qualify to do business in this state by filing its charter in the office of the Secretary of State or to pay any tax or fee required to be paid by foreign corporations under any law of this state.
(b) However, the exemption shall not include:
(1) Ad valorem taxes assessed against any real property which the corporation, institution, or entity may own in the State of Arkansas;
(2) Arkansas income, franchise, and privilege tax which may result from the sale, ownership, or control after acquisition of the property by foreclosure, or acquisition in lieu of foreclosure, either by virtue of the value of the specific piece of property so foreclosed or to which title is taken in lieu of foreclosure, or by virtue of the rental or other income realized from the property; or
(3) Arkansas income taxes which may be levied upon financial institutions pursuant to § 26-51-1401 et seq.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 4-31-205
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:4-31-205
Source file: gov.ar.code.title.04.odt
Pages: Not recorded – Not recorded
Passage SHA-256: eb68fff178050f76f8002bd55e053bc71a933f8a83ca43887e83c332889dca45
Source location: content.xml paragraph 20522
Stored source content
4-31-205. Taxes.
(a) No corporation, institution, or entity coming under the provisions of this subchapter and confining its business operations in Arkansas within the limits herein provided shall be required to qualify to do business in this state by filing its charter in the office of the Secretary of State or to pay any tax or fee required to be paid by foreign corporations under any law of this state.
(b) However, the exemption shall not include:
(1) Ad valorem taxes assessed against any real property which the corporation, institution, or entity may own in the State of Arkansas;
(2) Arkansas income, franchise, and privilege tax which may result from the sale, ownership, or control after acquisition of the property by foreclosure, or acquisition in lieu of foreclosure, either by virtue of the value of the specific piece of property so foreclosed or to which title is taken in lieu of foreclosure, or by virtue of the rental or other income realized from the property; or
(3) Arkansas income taxes which may be levied upon financial institutions pursuant to § 26-51-1401 et seq.
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Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-1401. Apportionment and allocation. [Effective until January 1, 2021.]
(a) Except as otherwise specifically provided, a financial institution whose business activity is taxable both within and without this state shall allocate and apportion its net income as provided in this subchapter. All items of nonbusiness income, income which is not includable in the apportionable income tax base, shall be allocated pursuant to the provisions of §§ 26-51-704 — 26-51-708. A financial institution organized under the laws of a foreign country, the Commonwealth of Puerto Rico, or a territory or possession of the United States whose effectively connected income, as defined under the Internal Revenue Code, 26 U.S.C. § 1 et seq., as in effect January 1, 1995, is taxable both within this state and within another state, other than the state in which it is organized, shall allocate and apportion its net income as provided in this subchapter.
(b)(1) All business income, income which is includable in the apportionable income tax base, shall be apportioned to this state by multiplying such income by the apportionment percentage.
(2) The apportionment percentage is determined by adding the taxpayer's receipts factor as described in § 26-51-1403, property factor as described in § 26-51-1404, and payroll factor as described in § 26-51-1405 together and dividing the sum by three (3). If one (1) of the factors is missing, the two (2) remaining factors are added and the sum is divided by two (2). If two (2) of the factors are missing, the remaining factor is the apportionment percentage. A factor is missing if both its numerator and denominator are zero, but it is not missing merely because its numerator is zero.
(c) Each factor shall be computed according to the method of accounting,
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-1401
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 26-51-1401. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-1401. Apportionment and allocation. [Effective January 1, 2021.]
(a) Except as otherwise specifically provided, a financial institution whose business activity is taxable both within and without this state shall allocate and apportion its net income as provided in this subchapter. All items of nonbusiness income, income that is not includable in the apportionable income tax base, shall be allocated under §§ 26-51-704 — 26-51-708. A financial institution organized under the laws of a foreign country, the Commonwealth of Puerto Rico, or a territory or possession of the United States whose effectively connected income, as defined under the Internal Revenue Code, 26 U.S.C. § 1 et seq., as in effect January 1, 1995, is taxable both within this state and within another state, other than the state in which it is organized, shall allocate and apportion its net income as provided in this subchapter.
(b) All business income, income which is includable in the apportionable income tax base, shall be apportioned to this state by multiplying such income by the taxpayer's receipts factor as described in § 26-51-1403.
(c) The taxpayer's receipts factor shall be computed according to the method of accounting, cash or accrual basis, used by the taxpayer for the taxable year.
(d) If the allocation and apportionment provisions of this subchapter do not fairly represent the extent of the taxpayer's business activity in this state, the taxpayer may petition for, or the Secretary of the Department of Finance and Administration may require, in respect to all or any part of the taxpayer's business activity, if reasonable:
(1) Separate accounting;
(2) The inclusion of one (1) or more additional factors which will fairly represent the taxpayer's business activity in this state;
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-1401
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 26-51-1401. This identifies an authority to review, not proof of applicability.