BusIness GuIde

Each firm’s employment record isdetermined primarily by its taxablepayroll and history of employeeinvoluntary termination. The tax isdetermined by past experience andthe amount of the reserve-ratio. Thereserve-ratio is the excess of contributionspaid over benefits chargedas related to payroll. The higher thereserve-ratio then the lower the taxrate.capital gains taxrEDuctionThe Capital Gains Tax Reductionafforded in the 1999 legislativesession allows for an exemption of30 percent of capital gains after Jan.1, 1999, if the taxpayer has a capitalgains tax liability. For taxpayersother than corporations, gross incomeshall not include 50 percent ofany gain from the sale or exchangeof qualified small business stockheld for more than five years.Profits from Arkansas venture capitalinvestments are also exempt fromthe capital gains tax, provided thatthe investment was made in a businessin Arkansas that is a qualifiedProfits from Arkansas venture capital investments are exempt from the capital gains tax if the investment was madein a business in Arkansas that is a qualified technology-based or biotechnology enterprise or a client of the GenesisTechnology Incubator.technology-based or biotechnologyenterprise or a client of the GenesisTechnology Incubator. Investmentsin companies registered on a NationalSecurities Exchange are noteligible. lTAXesFor more information on taxation inCentral Arkansas, visit www.arkansasedc.com/business_development/taxation/.liFEstYlEUnderneath this manhole is a network ofover 1,300 miles of sanitary sewer pipes thatconnect nearly 65,000 customers to wastewaterservice. Little Rock Wastewater’s contributionto the economic development of Little Rockhas always been steadfast, assisting industriessuch as Dassault Falcon Jet and Unilever withdischarge compliance and innovation not tomention constructing the largest infrastructureimprovement of this decade, the LittleMaumelle Wastewater Treatment Facility. LittleRock Wastewater has been and will always becommitted to this city and our environment.www.lrwastewater.com501-376-2903Little Rock Regional Chamber of Commerce 2009 Business Guide 43