This bill amends the Income Tax Act of 1929 to establish a specific apportionment formula for the income of railroads operating in Arkansas. It introduces new legal language that outlines the legislative findings and intent, stating that starting from tax years beginning on or after January 1, 2023, railroads must apportion and allocate their income using one of the methods provided in the act. The bill also modifies existing provisions related to the division of income under the Multistate Tax Compact, specifically excluding railroads from certain income allocation requirements.

Key amendments include the introduction of a sales factor for apportionment, as well as detailed calculations for property and payroll factors that railroads must use to determine their net operating income attributable to Arkansas. The bill also clarifies that any conflicting rules from the Department of Finance and Administration are void, ensuring that the new provisions take precedence. The effective date for these changes is set for tax years beginning on or after January 1, 2023.

Statutes affected:
SB 482: 26-5-101
Act 658: 26-5-101