Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
Regulation 1997-4 - Comprehensive Individual Income Tax Regulations
Rule 26-51-412 - GAIN OR LOSS - EXCHANGE OF PROPERTY
Rule 3.26-51-412(a) - Dividends Paid In Securities or Other Property

Dividends paid in securities or other property (other than its own stock) in which the earnings of a corporation have been invested, are income to the recipients in the amount of the market value of such property when receivable by the shareholders. Where a corporation declared a dividend payable in stock of another corporation, setting aside the stock to be so distributed and notifying the shareholders of its action, the income arising to the recipients of such stock is its market value at the time the dividends become payable. Scrip dividends are subject to tax in the year in which the warrants are issued.