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Franchise Tax 

The Arkansas Secretary of State Office is responsible for the collection of the state’s mandatory franchise taxes. Companies who conduct business in Arkansas are required to pay this annual tax, with the first $8 million placed into the state’s general fund and the remaining balance into the Education Adequacy Fund, which provides funding to public schools and higher education. 

The Arkansas General Assembly’s Act 94 of 2003, Arkansas Code Annotated as 26-54-104, adjusted the state’s franchise tax and changed the tax deadline date to May 1st of the payment year.

Franchise Taxes Collected

  • 2009 - $22.8 million
  • 2010 - $24.0 million
  • 2011 - $23.2 million
  • 2012 - $23.1 million
  • 2013 - $25.9 million
  • 2014 - $26.4 million
  •   File Franchise Tax

    The chart below lists the franchise tax rates for various entities under Arkansas Code 26-54-104. 
    Franchise Tax Type Current Rate for
    2015 Reporting Year
    Corporation/Bank with Stock .3% of the outstanding capital stock;
    $150 minimum
    Corporation/Bank without Stock $300
    Limited Liability Company $150
    Insurance Corporation Legal Reserve Mutual,
    Assets Less Than $100 million
    $300
    Insurance Corporation Legal Reserve Mutual,
    Assets Greater Than $100 million
    $400
    Insurance Company Outstanding Capital Stock
    Less Than $500,000
    $300
    Insurance Company Outstanding Capital Stock
    Greater Than $500,000
    $400
    Mortgage Loan Corporation .3% of the outstanding capital stock;
    $300 minimum
    Mutual Assessment Insurance Corporation $300

    Note: 26-54-105. Franchise tax reports.
    d)(1) Every corporation that dissolves shall be required to pay at the time of dissolution the franchise tax for the prior calendar year and pay at the time of dissolution the minimum franchise tax for the year in which dissolved or withdrawn.



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