If an individual resides within the City of Texarkana, Arkansas for more than six months, and then becomes a non-resident, can he avail himself of the border city income tax exemption for the payment of state income tax for the entire year? 26-52-602, 26-51-102. RESPONSE: Probably, yes.

STATE OF ARKANSAS OFFICE OF THE ATTORNEY GENERAL JUSTICE BUILDING, LITTLE ROCK 72201 STEVE CLARK : (501) 371-2007 ATTORNEY GENERAL OPINION NO. 86-45 February 27, 1986 The Honorable Wayne Dowd State Senator P.O. Box 2631 Texarkana, Arkansas 75501 Dear Senator. Dowd: This is in response to your opinion request wherein -you posed the following inquiry: If an -individual-. resides within the City of Texarkana, Arkansas, for more than six months of the taxable year, and then becomes a non-resident,. can he avail himself of the "Border City" exemption for the payment of State Income Tax for the entire year? The “Border City" exemption to which you refer is found in Ark. Stat. Ann. §84-1946 et seq (Repl. 1980). ° The _ exemption eéxtends to residents of cities such as Texarkana, ' Arkansas and Texarkana, Texas. As you state in. your letter, however, the Border City Income Tax Exemption Act does -not ‘provide a definition of resident and therefore you directed this office's attention to Ark. Stat. Ann §84-~2002(9) (Repl. 1980) which provides as follows: The word. "resident" means. natural person and includes for the purpose of determining liability to _ the tax imposed. by this Act upon.or with reference to the income of -any taxable year, any person domiciled-in the State of Arkansas and any. other: ‘person who. maintains a permanent place of abode within .the State and spends in the aggregate more than six (6) months of the. taxable. year within. the State. (emphasis supplied) In attempting. to respond to your inquiry, this Office has -Gontacted attorneys with the Income Tax Section of ‘the Revenue Division of the Department of Finance. Administration. _, No written policy or ‘opinion of that office specifically _ addresses the question which you have raised. a Senator Wayne Dowd February 13, 1986 Page 2 The income tax definitions and in particular, the term "resident" were at issue in Shinn v. Heath, 259 Ark. 577, 535 S.W.2d 57 (1976). In a lengthy discussion of the term, the Supreme Court cited with approval various cases indicating that definition of residence depends on the context of the statute and must be determined on a case by case basis. However, fundamentally, they stated domicile is an encompassing term inclusive of residence and indicating not only a physical presence, but an intent to remain in one. location. Of course, §84-2002(9) defines a resident as a person "domiciled" in the State of Arkansas and also any person who maintains a permanent place of abode within the state and spends in the aggregate more than six months of the taxable year within the state. The Court in Shinn, supra, read the statute in a manner designed to carry out its purpose and determined that "place ‘of abode" implies a degree of permanence, citing Cravens v. Cook, 212 Ark. 71, 204 S.W.2d 909 (1947). As a matter of law, exemptions from taxation are to be narrowly construed. However, .a person who has met the . Gefinitional requirement of §84-2002(9) (Repl. ©1980) is -entitled to claim the exemption. Therefore, if a person has (1) maintained a permanent place of abode in. Texarkana .and (2) has spent in the aggregate more that six months of the taxable year in ‘Texarkana, he may claim the Border City “28 XOmp tro neo : . : ate? _ Attorndy General “-. . gSCr1de : cc: Tim Leathers Revenue Legal Counsel Ledbetter Building ‘Room 209 Little Rock, AR 72203