Ark. Code Ann. § 26-51-403 (2026)
Income generally
History. Acts 1929, No. 118, Art. 3, § 7; Pope's Dig., § 14030; Acts 1969, No. 236, § 2; 1973, No. 182, § 4; A.S.A. 1947, § 84-2007; Acts 1987, No. 382, §§ 5, 6; 1989, No. 826, § 17; 1991, No. 685, § 1; 1993, No. 785, § 19; 1995, No. 1160, § 7; 1997, No. 1345, § 1; 2005, No. 1973, § 2; 2019, No. 910, § 3711.
Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (c)(2).
Cross References. Tax-Deferred Tuition Savings Program, § 6-84-101 et seq.
Research References
Ark. L. Notes.
Beard, Transfers of Property between Spouses and Former Spouses — An Overview of Income Tax Issues and a Suggested Analytical Approach to Such Issues, 1990 Ark. L. Notes 1.
Case Notes
Accounting Methods.
Where agreement between state and taxpayer as to formula for determining what portion of gross income should be attributable to sources within the state in the case of income derived partly from sources within and partly from sources outside the state is held unenforceable, and the taxpayer's method of accounting does not clearly reflect the income, the computation may be made upon such basis and in such manner as in the opinion of the state does clearly reflect the income. General Box Co. v. Scurlock, 224 Ark. 266, 272 S.W.2d 678 (1954).
Received.
For the purpose of computing net income, “received” means either received or accrued, depending on whether the taxpayer is on a cash basis or an accrual basis. F & M Bank v. Skelton, 266 Ark. 680, 587 S.W.2d 561 (1979).
Since in 1973 when Arkansas began to tax the income of banks, bank's books need to show the interest now being taxed as having been “received” in those years. F & M Bank v. Skelton, 266 Ark. 680, 587 S.W.2d 561 (1979).
Cited: Cook v. Walters Dry Goods Co., 212 Ark. 485, 206 S.W.2d 742 (1947).