Commission Proceedings

The Commission is governed by the Independent Tax Appeals Commission Act and the Rules of Procedure of the Arkansas Tax Appeals Commission:

• The Independent Tax Appeals Commission Act is found at Arkansas Code sections 26-18-1101 to 26-18-1120.  A copy is available on the Commission’s website.
• The Rules of Procedure of the Arkansas Tax Appeals Commission are available on the Commission’s website here.  Rule 5 (starting with 5-101) governs tax appeals before the Commission.

Tax Research

The following is to inform persons appearing before the Commission, particularly self-represented litigants, on how to research Arkansas tax law.  The Tax Appeals Commission decides cases based on applicable law, such as statutes, administrative rules, court opinions, and decisions of the Commission.  The Commission does not have discretion to waive or alter the requirements imposed by law.

The starting point for almost all Arkansas taxes appealed to the Commission is statutes enacted by the Arkansas General Assembly, which are found in the Arkansas Code, available at the Arkansas State Legislature website.  The most common taxes appealed to the Commission are state income tax, which is title 26, chapter 51 (beginning with § 26-51-101) and state gross receipts tax—commonly known as sales tax—which is chapter 52 (beginning with § 26-52-101).

The Department of Finance and Administration has adopted administrative rules about state taxes.  They are available on the DFA Revenue Rules website.  The most referenced rules in tax appeals are:

• Excise Tax Rule 2008-3, the consolidated Gross Receipts Tax Rules (sales tax rules), Compensating Use Tax Rules, and Special Excise Tax Rules;
• Income Tax Rule 1997-4, the Comprehensive Individual Income Tax Regulations; and
• Income Tax Rule 1998-1, the Comprehensive Corporate Income Tax Regulations.

Case law, and particularly the opinions of the Arkansas Supreme Court, are often relevant to tax appeals before the Commission.  Opinions of the Supreme Court and Court of Appeals of Arkansas are available on the Court’s website, including keyword search functionality.

The Tax Appeals Commission decisions are available on this website.  They may be particularly helpful to taxpayers seeking to learn how the Commission has previously decided similar cases.  Decisions by the full panel of Commissioners are binding precedent on future Commission decisions.  Decisions of single commissioners are not binding but are of persuasive value.

Department of Finance and Administration (DFA) administrative decisions and opinion letters may also assist taxpayers researching issues and may be referenced as persuasive authority.  Administrative decisions (including revision decisions by the DFA Commissioner of Revenue) are available at this DFA webpage.  DFA legal opinions are similarly available here.