§ 12-88-104. Exemptions from certain taxes and regulatory requirements

(a)

1. (1) An out-of-state business that conducts operations within the state for the purpose of performing work or services related to a declared state disaster or emergency during a disaster response period is exempt from:

   1. (A) Registering, filing, and remitting state or local taxes; and

   2. (B) Complying with state licensing, certification, and registration requirements.

2. (2) The exemptions provided in subdivision (a)(1) of this section apply to state and local business and occupational licensing and registration requirements and state and local taxes or fees, including without limitation:

   1. (A) Unemployment insurance contributions;

   2. (B) State and local occupational licensing fees and privilege taxes;

   3. (C) State and local income taxes;

   4. (D) State and local sales and use taxes on property temporarily brought into the state for use during the disaster response period and subsequently removed from the state; and

   5. (E) State licensing, certification, and registration requirements.

3. (3)

   1. (A) For purposes of a state or local tax on or measured by, in whole or in part, net or gross income or receipts, all activity of the out-of-state business that is conducted in this state under this chapter is exempt from filing requirements for the state or local tax, including without limitation any filing required for a unitary or combined group of which the out-of-state business may be a part.

   2. (B) For the purpose of apportioning income, revenue, or receipts, the performance by an out-of-state business of disaster-related or emergency-related work under this chapter shall not be sourced to or otherwise impact or increase the amount of income, revenue, or receipts apportioned to this state.

(b) During a disaster response period, an out-of-state employee is not:

1. (1) Required to file or pay Arkansas income taxes;

2. (2) Subject to Arkansas income tax withholdings; or

3. (3) Required to file or pay any other state or local tax or fee, including related state or local employer withholding and remittance obligations but not including transaction taxes or fees described in § 12-88-105.

(c) However, out-of-state businesses and out-of-state employees are subject to any applicable ad valorem taxes.