SB482

Senate Bill 482 amends the Income Tax Act of 1929 to provide specific apportionment methods for calculating the Arkansas corporate income tax liability of railroad companies. It establishes that for tax years beginning on or after January 1, 2023, railroads may choose between two methods to apportion their net operating income to the state. The first option uses a single sales factor, while the second uses a weighted formula consisting of property, payroll, and double-weighted sales factors. The bill formalizes these calculation methods into state law to clarify how interstate railroad income is divided for tax purposes. Additionally, the act voids any existing administrative rules from the Department of Finance and Administration that conflict with these new provisions. This legislation ensures that railroads have a clear, alternative framework for tax calculation that accounts for their unique operational structure across state lines.