Source: https://www.arkleg.state.ar.us/Acts/FTPDocument?path=%2FACTS%2F2013R%2FPublic%2F&file=1284.pdf&ddBienniumSession=2013%2F2013R
Pages 1-2, text extracted with pdftotext (poppler), cropped to the text column (-x 80) to drop the margin line numbers.

Stricken language would be deleted from and underlined language would be added to present law.
Act 1284 of the Regular Session

As Engrossed:

State of Arkansas

H3/20/13

A Bill

89th General Assembly

HOUSE BILL 1866

Regular Session, 2013
By: Representative Kerr

For An Act To Be Entitled
AN ACT CONCERNING THE COMPUTATION OF INCOME TAX; TO
ADOPT CURRENT INTERNAL REVENUE CODE PROVISIONS
CONCERNING THE COMPUTATION OF INCOME TAX WHEN A
TAXPAYER RESTORES AN AMOUNT HELD UNDER A CLAIM OF
RIGHT; AND FOR OTHER PURPOSES.

Subtitle
TO ADOPT CURRENT INTERNAL REVENUE CODE
PROVISIONS CONCERNING THE COMPUTATION OF
INCOME TAX WHEN A TAXPAYER RESTORES AN
AMOUNT HELD UNDER A CLAIM OF RIGHT.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
SECTION 1.

Arkansas Code Title 26, Chapter 51, Subchapter 4, is

amended to add an additional section to read as follows:
26-51-457.

(a)

Claim of right.

Title 26 U.S.C. § 1341(a)(1)-(3) and (b)(2), as they existed on

January 1, 2013, regarding the computation of income tax when a taxpayer
restores a substantial amount held under a claim of right, is adopted for
purposes of computing income tax liability under this chapter.

(b)(1)

Title 26 U.S.C. § 1341(a)(4) and (5), (b)(1), and (b)(3)-(5),

concerning the methods of calculating the deduction authorized under 26
U.S.C. § 1341 and special rules for net operating losses and capital losses,
are not adopted.
(2)

For the purpose of computing income tax when a taxpayer

restores a substantial amount held under a claim of right under this section:

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As Engrossed:

H3/20/13

(A)

HB1866

The tax imposed under this chapter is calculated for

the taxable year by allowing a deduction in the tax year the taxpayer
restores the amount held under a claim of right; and
(B)

Net operating losses and capital losses are calculated

and deducted under §§ 26-51-427 and 26-51-815.
(c)

The Director of the Department of Finance and Administration may

promulgate rules to administer this section.
SECTION 2.

EFFECTIVE DATE.

This act is effective for tax years

beginning on or after January 1, 2013.

/s/Kerr

APPROVED: 04/16/2013

2

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