Franchise Taxes to be collected by DFA
- Posted Date: 11/17/2020
- Office: All DFA
FOR IMMEDIATE RELEASE:
November 17, 2020
FOR MORE INFORMATION:
Scott Hardin, Spokesperson
Arkansas Department of Finance and Administration
Franchise taxes to be collected by the Arkansas Department of Finance and Administration
Collection transferred from Secretary of State to DFA
LITTLE ROCK, Arkansas (November 17, 2020) – As a result of Act 819 of the 2019 session, the Arkansas Department of Finance and Administration (DFA) will accept and process franchise taxes beginning January 1, 2021. Franchise taxes were previously administered by the Arkansas Secretary of State’s Office.
Companies that conduct business in Arkansas are required to pay this annual tax. Approximately 150,000 companies pay franchise taxes each year in Arkansas. Franchise tax collections totaled $28 million in 2019.
While the due date for filing an Arkansas Franchise Tax Report is May 1, 2021, they may be filed beginning January 1, 2021 through the Arkansas Taxpayer Access Point (ATAP) at www.atap.arkansas.gov. ATAP offers free electronic filing and payment options.
“We appreciate the ongoing support and assistance from the Secretary of State’s Office throughout the transition of Franchise Tax to DFA,” said DFA Secretary Larry Walther. “We look forward to serving Arkansas companies in this new capacity.”
The Secretary of State’s Office will continue to serve as the point of contact for registering and launching a business in the state as well as defining the organizational structure of the business.
Companies in Arkansas that that must file franchise taxes include banks, legal reserve mutual insurance companies, insurance companies with authorized capital stock, limited liability companies, non-stock corporations, and stock corporations.
Companies that have registered franchise tax accounts with the Secretary of State’s Office will be made aware of the transfer to DFA via mail. Additionally, a hard copy of the franchise tax return will be provided by mail by March 1, 2021.