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Arkansas repeals Nonprofit Incentive Act

  • Feb 27, 2017 | Gail Cole

 Incentive sales and use tax refunds are longer available to nonprofits in Georgia.

Nonprofits in Arkansas will no longer benefit from the sales and use tax refund provided by the Nonprofit Incentive Act of 2005. Senate Bill 160, which was signed into law last week, repeals the Act, effective 90 days after the end of the 2017 legislative session.

The Nonprofit Incentive Act was created as an incentive to draw nonprofits to the state. The text of the Act notes, β€œIn situations in which a nonprofit organization is considering whether to locate its operations in Arkansas, it is important to have an inducement to help the nonprofit organization decide to locate to Arkansas.”

However, bill sponsor Sen. David Wallace told the Senate that the incentives had never been used because nonprofits would β€œrather stay in Washington, D.C.” Wallace was asked by the Arkansas Economic Development Commission to sponsor a bill to eliminate the program. Additional information about the incentive is available in the text of SB 160.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.