State Readies Defense Against Missile Manufacturer

A long-running tax dispute between Raytheon Co. and the state of Arkansas remains on pause since April awaiting a court date.

You might recall that the defense contractor is attempting to recover more than $3.6 million in state taxes for 2008-11, 2014 and 2016 paid on missile sales tied to its East Camden plant.

Raytheon performs final assembly, packaging and shipment of five missile types at its facility in the Highland Industrial Park.

In addition to seeking refunds, the company is contesting the state Department of Finance & Administration’s claim that it owes more than $3.9 million in income taxes, penalties and interest.

We’re told that Judge Robin Carroll likely will schedule a three- to four-day trial to be held during the second half of this year in Ouachita County Circuit Court in Camden. The case will celebrate its third birthday on May 30, but the disagreement dates back to November 2012.

That’s when Raytheon filed for a tax refund based on calculations derived from a formula rejected by the state.

More refund denials and additional tax assessments by DFA followed along with rulings against the company by administrative law judges in 2017 and 2019.

Court-ordered mediation a year ago went nowhere.

On the corporate front, Raytheon merged in April 2020 with the aerospace subsidiaries of United Technologies Corp. of Farmington, Connecticut. The combination created Raytheon Technologies, headquartered in Waltham, Massachusetts, which reported revenue of more than $56 billion in 2020.

Its missiles & defense operations accounted for sales of more than $11 billion last year.