In a decision dated January 18, 2022, the Arkansas Office of Hearings and Appeals (OHA) held that a married couple remained domiciled in and residents of Arkansas for individual income tax purposes for the 2013 through 2018 tax years, rejecting the couple’s assertion that they had abandoned their Arkansas domicile by relocating to another state.

While the couple purchased a condo, registered to vote, and obtained drivers’ licenses in another state, and split their time between Arkansas and the other state during these years, credit card records indicated that they spent a significant amount of time in Arkansas over the same period. Further, the couple kept their house in Arkansas and stayed there while in the state. They also claimed the Arkansas homestead tax credit for their residence in Arkansas for each of the years at issue and did not claim a similar credit in another state, had bills from all of their properties mailed to their Arkansas address, and registered at least two companies in Arkansas between 2013 and 2018.

Based on these facts, and emphasizing the couple’s retention of their Arkansas house and the claiming of the homestead tax credit with respect to the property, the OHA concluded that the couple never abandoned their Arkansas domicile and thus remained residents of the state for income tax purposes.

Dkt. Nos. 22-046 through 22-051 (Ark. Office of Hearings and Appeals, Jan. 18, 2022).