§ 26-51-207 - Income tax surcharge. - Arkansas Statutes

26-51-207. Income tax surcharge.

(a) In addition to the taxes levied by 26-51-201 et seq., 26-51-301, and 26-51-302, there is levied an income tax surcharge of three percent (3%) of the tax liability of every person required to file an Arkansas income tax return.

(b) (1) If an individual is a resident of an Arkansas border city described in 26-52-601 et seq., the individual shall be liable for the income tax surcharge levied in subsection (a) of this section.

(2) The surcharge shall be computed on the tax liability that would have been due had the income tax exemption of 26-52-601 et seq. not been available.

(3) The income tax exemption of 26-52-601 et seq. shall not apply to the income tax surcharge levied in subsection (a) of this section.

(c) The revenues derived from the additional tax imposed by this section shall be credited to the General Revenue Fund Account of the State Apportionment Fund, there to be distributed with the other gross general revenue collections.

(d) As used in this section, "tax liability" means the taxes imposed pursuant to 26-51-201 et seq., 26-51-301, and 26-52-302 before the application of any tax credits.

(e) This section shall apply only to tax years beginning in calendar years 2003 and 2004.