Blog

Across the country, state leaders are increasingly questioning the long-term sustainability of property taxation. In Texas, that discussion has moved beyond incremental relief and into a broader conversation about structural reform of the property tax system itself.
Recent proposals from Governor Greg Abbott and Lt. Governor Dan Patrick outline significant changes to how property taxes are levied, limited, and potentially reduced, and in some cases eliminated for homeowners. While both leaders share the goal of delivering meaningful tax relief, their approaches differ in scope and structure.

Navigating the Rapid Expansion of Digital Taxation

The digital economy now dominates consumer and business spending. As such, states are responding by aggressively expanding sales and use tax bases to capture revenue from digital products and services. In our recent Advantous webinar, we explored what’s driving these changes, where states are heading, and the key compliance risks businesses should be watching.

Why Digital Taxation Is Expanding

States are facing revenue pressure as tangible goods represent a shrinking portion of taxable transactions. At the same time, SaaS, streaming, cloud computing, and digital services continue to grow. Legislatures are responding by:

Expanding tax bases to include digital goods and services
Reclassifying SaaS and cloud services as taxable
Updating sourcing rules to reflect remote and multistate use
Tightening enforcement through economic nexus standards

The result is a patchwork of rules that vary significantly by state.

Arkansas policymakers are preparing for a pivotal 2026 fiscal session, set to convene at noon on April 8, with pre-filing of appropriation bills beginning March 9. As lawmakers gather to address budget priorities, several significant tax policy changes are poised to reshape the state’s economic landscape. Recent legislation enacted in 2025 introduces new corporate incentives, expands sales and use tax exemptions for large-scale data centers, and modernizes Arkansas’ corporate income tax sourcing and nexus standards. Together, these measures signal a continued emphasis on economic development, competitiveness, and alignment with broader national tax trends.

As discussed in our last newsletter, Colorado was the first state to call a special session to address the effects of the One Big Beautiful Bill Act (“OBBBA”). Since then, many states have either passed legislation or issued guidance to address its conformity to H.R. 1, the OBBBA.

Delaware called a special session on October 31, 2025, to address a potential multi-year revenue loss from rolling conformity to federal tax cuts under the OBBBA. On November 19, 2025, Governor Matt Meyer signed H.B. 255 to decouple from certain corporate tax provisions in the OBBBA. Specifically, the bill decoupled from the following: (1) expensing for domestic research and experimental expenditures made after December 31, 2021, but on or before December 31, 2024, to continue expensing in effect immediately before enactment of the OBBBA; (2) for property acquired and placed in service after January 19, 2024, and before January 1, 2031, to continue amortization and depreciation under the IRC in effect immediately before the enactment of the OBBBA; and (3) for qualified production property placed in service before January 1, 2031, to continue amortization and depreciation under the IRC in effect immediately before the enactment of the OBBBA.