Arkansas Code Title 26. Taxation § 26-51-205. Corporations
Current as of January 01, 2020 | Updated by FindLaw Staff
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(a)(1) Every corporation organized under the laws of this state shall pay annually an income tax with respect to carrying on or doing business on the entire net income of the corporation, as now defined by the laws of the State of Arkansas, received by the corporation during the income year, on the following basis:
(A) On the first three thousand dollars ($3,000) of net income or any part thereof, one percent (1%);
(B) On the second three thousand dollars ($3,000) of net income or any part thereof, two percent (2%);
(C) On the next five thousand dollars ($5,000) of net income or any part thereof, three percent (3%);
(D) On the next fourteen thousand dollars ($14,000) of net income or any part thereof, five percent (5%);
(E) On the next seventy-five thousand dollars ($75,000) of net income or any part thereof, but not exceeding one hundred thousand dollars ($100,000), six percent (6%); and
(F) On net income exceeding one hundred thousand dollars ($100,000), six and five-tenths percent (6.5%).
(2) For the tax year beginning January 1, 2021, every corporation organized under the laws of this state shall pay annually an income tax with respect to carrying on or doing business on the entire net income of the corporation, as now defined by the laws of this state, received by the corporation during the income year, on the following basis:
(A) On the first three thousand dollars ($3,000) of net income or any part thereof, one percent (1%);
(B) On the next three thousand dollars ($3,000) of net income or any part thereof, two percent (2%);
(C) On the next five thousand dollars ($5,000) of net income or any part thereof, three percent (3%);
(D) On the next fourteen thousand dollars ($14,000) of net income or any part thereof, five percent (5%);
(E) On the next seventy-five thousand dollars ($75,000) of net income or any part thereof, six percent (6%); and
(F) On net income exceeding one hundred thousand dollars ($100,000), six and two-tenths percent (6.2%).
(3) For tax years beginning on or after January 1, 2022, every corporation organized under the laws of this state shall pay annually an income tax with respect to carrying on or doing business on the entire net income of the corporation, as now defined by the laws of this state, received by the corporation during the income year, on the following basis:
(A) On the first three thousand dollars ($3,000) of net income or any part thereof, one percent (1%);
(B) On the next three thousand dollars ($3,000) of net income or any part thereof, two percent (2%);
(C) On the next five thousand dollars ($5,000) of net income or any part thereof, three percent (3%);
(D) On the next fourteen thousand dollars ($14,000) of net income or any part thereof, five percent (5%); and
(E) On net income exceeding twenty-five thousand dollars ($25,000), five and nine-tenths percent (5.9%).
(b)(1) Every foreign corporation doing business within the jurisdiction of this state shall pay annually an income tax on the proportion of its entire net income as now determined by the income tax laws of this state, on the following basis:
(A) On the first three thousand dollars ($3,000) of net income or any part thereof, one percent (1%);
(B) On the second three thousand dollars ($3,000) of net income or any part thereof, two percent (2%);
(C) On the next five thousand dollars ($5,000) of net income or any part thereof, three percent (3%);
(D) On the next fourteen thousand dollars ($14,000) of net income or any part thereof, five percent (5%);
(E) On the next seventy-five thousand dollars ($75,000) of net income or any part thereof, but not exceeding one hundred thousand dollars ($100,000), six percent (6%); and
(F) On net income exceeding one hundred thousand dollars ($100,000), six and five-tenths percent (6.5%).
(2) For the tax year beginning January 1, 2021, every foreign corporation doing business within the jurisdiction of this state shall pay annually an income tax on the proportion of its entire net income as now determined by the income tax laws of this state, on the following basis:
(A) On the first three thousand dollars ($3,000) of net income or any part thereof, one percent (1%);
(B) On the next three thousand dollars ($3,000) of net income or any part thereof, two percent (2%);
(C) On the next five thousand dollars ($5,000) of net income or any part thereof, three percent (3%);
(D) On the next fourteen thousand dollars ($14,000) of net income or any part thereof, five percent (5%);
(E) On the next seventy-five thousand dollars ($75,000) of net income or any part thereof, six percent (6%); and
(F) On net income exceeding one hundred thousand dollars ($100,000), six and two-tenths percent (6.2%).
(3) For tax years beginning on or after January 1, 2022, every foreign corporation doing business within the jurisdiction of this state shall pay annually an income tax on the proportion of its entire net income as now determined by the income tax laws of this state, on the following basis:
(A) On the first three thousand dollars ($3,000) of net income or any part thereof, one percent (1%);
(B) On the next three thousand dollars ($3,000) of net income or any part thereof, two percent (2%);
(C) On the next five thousand dollars ($5,000) of net income or any part thereof, three percent (3%);
(D) On the next fourteen thousand dollars ($14,000) of net income or any part thereof, five percent (5%); and
(E) On net income exceeding twenty-five thousand dollars ($25,000), five and nine-tenths percent (5.9%).
(c)(1)(A) There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Work Force 2000 Development Fund”.
(B) The Work Force 2000 Development Fund shall consist of those special revenues as specified in subdivision (c)(2) of this section and all other revenues as may be authorized by law.
(2)(A) The Revenue Division of the Department of Finance and Administration shall deposit the funds collected under the provisions of this section for corporate income tax into the State Treasury, there to be credited to the Revenue Holding Fund Account of the State Apportionment Fund.
(B)(i)(a) For each of the state's fiscal years, the Chief Fiscal Officer of the State shall determine as an annual allocation available under the provisions of this section an amount based on the total net revenues, as enumerated in subsections (a) and (b) of this section, which were collected in the immediate past year, multiplied by a factor of six hundred seventy-eight ten thousandths (.0678).
(b) On the last day of each month of the respective fiscal year, the Chief Fiscal Officer of the State shall certify to the Treasurer of State an amount based on one-twelfth ( 1/12 ) of the annual allocation provided in this section for transfer as specified in subdivision (c)(2)(B)(ii) of this section.
(ii) The Treasurer of State shall then transfer the amount so certified to the Special Revenue Fund Account as part of the gross special revenues.
(iii) After the deductions as set out in § 19-5-203 have been made, the remaining amount shall be credited to the Work Force 2000 Development Fund.
(iv) The remaining corporate income tax collections remaining in the Revenue Holding Fund Account shall be credited to the General Revenue Fund Account of the State Apportionment Fund, there to be distributed with the other gross general revenue collections for that month in accordance with the provisions of § 19-5-201 et seq.
(d)(1) All proceeds derived from the additional tax levied by this section shall be used exclusively for the authorized educational activities of:
(A) Any postsecondary vocational-technical school, technical institute, comprehensive lifelong learning center, technical college, community college; or
(B) Any postsecondary vocational-technical school, technical institute, comprehensive lifelong learning center, or technical college that merges with a two-year branch of a four-year institution, a four-year institution, a technical college, or a community college.
(2)(A) The distribution of the proceeds shall be supervised by the State Board of Career Education for the postsecondary vocational-technical schools, technical institutes, and comprehensive lifelong learning centers.
(B) The distribution of the proceeds for technical colleges, community colleges, or any postsecondary vocational-technical school, technical institute, comprehensive lifelong learning center, or technical college that merges with a two-year branch of a four-year institution, a four-year institution, a technical college, or a community college shall continue at the same proportion as those distributions made in fiscal year 1996-1997, excluding one-time capital disbursements and professional development disbursements made in fiscal year 1996-1997 equal to the amount of funds distributed in fiscal year 1998-1999.
(C) Any increase in the amount of funds in the Work Force 2000 Development Fund above the amount distributed in fiscal year 1998-1999 shall be supervised by the Arkansas Higher Education Coordinating Board and shall be distributed after a review of needs including, but not limited to, equity considerations and workforce development and after consultation with the presidents and chancellors of the technical and former technical colleges.
Cite this article: FindLaw.com - Arkansas Code Title 26. Taxation § 26-51-205. Corporations - last updated January 01, 2020 | https://codes.findlaw.com/ar/title-26-taxation/ar-code-sect-26-51-205.html
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