Arkansas Modernizes Multistate Corporate Income Taxation, Adopts Market-Based Sourcing

The Arkansas Governor signed a law to modernize the law concerning the apportionment of income derived from multistate operations, and to change the method for sourcing of receipts for services and intangibles. The law includes: 1) adoption of market-based sourcing of sales for sales other than sales of tangible personal property; 2) providing guidance for utilizing alternative apportionment including requiring equal application of rules, standards of proof, and anti-penalty provisions; 3) allowing providers of telecommunications services, internet services, and some television services to elect to use cost of performance sourcing until Dec. 31, 2035; and 4) excluding income of nonresident ...