Weiss v. McFadden

Betty C. Dickey, Chief Justice.

This is the second appeal from an iEegal-exaction lawsuit that was filed by a group of taxpayer retirees against the appeEant, the Arkansas Department of Finance and Administration (DF&A). In our first decision related to this case, we held that after-tax contributions to retirement plans are property and are therefore not subject to income taxes. See Weiss v. McFadden, 353 Ark. 868, 120 S.W.3d 545 (2003) (Weiss I). We further held that an income tax levied against after-tax contributions pursuant to Ark. Code Ann. § 26-51-307 is an ad valorem tax on property in…