1.26 Ark. Code R. 51-801(a)
Every person receiving gross income from Arkansas sources shall file an Arkansas individual income tax return for the tax year such gross income was received with the Revenue Division of the Arkansas Department of Finance and Administration. Arkansas "sources" shall include real or personal property located within Arkansas and business or personal activity carried on within Arkansas. However, gross income received by nonresident individuals from entirely "passive" sources within Arkansas is not subject to Arkansas individual income tax and thus need not be reported by such individuals to the Arkansas Department of Finance and Administration. Examples of gross income derived entirely from passive sources would be interest earned on a bank account located within Arkansas or dividends from stocks held by an investment firm located within Arkansas as part of its client's investment portfolio.
1.26 Ark. Code R. 51-801(a)