The Ar Tx Form (Border City Wage Exemption) documents wages paid to border city employees who are exempt from state income tax. This exemption is authorized by Acts 48 and 177 of 1977 and covers employees who reside in cities located in states bordering Arkansas, including Texas, Oklahoma, Missouri, Tennessee, Mississippi, and Louisiana.
Employers must prepare one Ar Tx Form for each qualifying employee every year. The form collects the employer identification number, business name and address, and for each employee: full legal name, mailing address, social security number, and total exempt wages paid. Accurate record keeping is a legal requirement for all filing businesses.
Copies required: Four copies are required for each qualifying employee. The employer keeps one copy for business tax records, gives one copy to the employee, and submits two copies to the Individual Income Tax - Withholding Branch by the annual filing deadline.
In addition to the annual Ar Tx Form, employers must file Form AR-3Q-TEX quarterly. This companion form consolidates the total exempt wages for all border city employees during each quarter and is submitted to the Withholding Branch. Together these forms give the state a complete tax filing record of border city wage exemptions.
Employers should retain copies of all filed forms for at least three years to support any state tax audit. Check the official instructions from the Department of Finance and Administration for current mailing information and annual filing deadlines. Employers with questions about their filing requirements can contact the Withholding Branch directly for guidance and support.
| Question | Answer |
|---|---|
| Form Name | Ar Tx Form (Border City Wage Exemption) |
| Form Purpose | Report wages exempt from state income tax |
| Form Length | 1 page |
| Copies Required | 4 per qualifying employee |
| Filing Frequency | Annual (Ar Tx Form) and quarterly (AR-3Q-TEX) |
| Issuing Authority | Arkansas Dept. of Finance and Administration |
| Fillable? | No |
| Avg. time to fill out | 15 min |
| Other names | Ar Tx Form, AR-TX, border city exemption, ar tx form 2020 |