United States

Arkansas: Bill Revises Partnership Apportionment Methodology

Mar 20, 2017
From KPMG TaxWatch

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Arkansas House Bill 1562, which has been sent to Governor Hutchinson for signature, makes certain changes to how partnership income is apportioned to Arkansas. Specifically, effective for tax years beginning on or after January 1, 2018, a partnership that files an Arkansas partnership return and has income from both within and without Arkansas must apportion income to Arkansas under the Uniform Division of Income for Tax Purposes Act or UDITPA. All partnership income from activities within Arkansas that is reflected on a partnership return will then be allocated to Arkansas by each partner. House Bill 1562 also provides that, to the extent use of UDITPA does not fairly represent the extent of the partnership’s business activity in Arkansas, the partnership may petition for or the Director may require use of an alternative apportionment method. Please contact Lori Wiseman at 214-840-6041 with questions on House Bill 1562.

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The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.