Arby’s, Taco Bueno Sale Proceeds Not Subject to Arkansas Tax

US Beef Corp. will keep its $1.27 million corporate income tax refund after the Arkansas Supreme Court ruled in a split decision Thursday that disposing of its Arby’s and Taco Bueno franchises wasn’t a part of its regular business.

Arkansas Department of Finance and Administration Secretary Jim Hudson asked the justices to reverse a trial court ruling that US Beef Corp.'s capital gains on the sale weren’t taxable “business income” because the transaction disposed of the entire business.

The justices sided with the company in a 4-3 decision.

“US Beef was in the business of owning and operating restaurant ...