Ark. Code Ann. § 26-5-101 — AR Code / Title 26 / Chapter 5 / Section 26-5-101
Multistate Tax Compact
Status: in_force

The "Multistate Tax Compact" is enacted into law and entered into with all jurisdictions legally joining therein, in the form substantially as follows: MULTISTATE TAX COMPACT ARTICLE I Purposes The purposes of this compact are to: 1. Facilitate proper determination of state and local tax liability of multistate taxpayers, including the equitable apportionment of tax bases and settlement of apportionment disputes; 2. Promote uniformity or compatibility in significant components of tax systems; 3. Facilitate taxpayer convenience and compliance in the filing of tax returns and in other phases of tax administration; 4. Avoid duplicative taxation. ARTICLE II Definitions As used in this compact: 1. "State" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession of the United States; 2. "Subdivision" means any governmental unit or special district of a state; 3. "Taxpayer" means any corporation, partnership, firm, association, governmental unit or agency, or person acting as a business entity in more than one state; 4. "Income tax" means a tax imposed on or measured by net income including any tax imposed on or measured by an amount arrived at by deducting expenses from gross income, one (1) or more forms of which expenses are not specifically and directly related to particular transactions; 5. "Capital stock tax" means a tax measured in any way by the capital of a corporation considered in its entirety; 6. "Gross receipts tax" means a tax, other than a sales tax, which is imposed on or measured by the gross volume of business, in terms of gross receipts or in other terms, and in the determination of which no deduction is allowed which would constitute the tax on income tax; 7. "Sales tax" imposed with respect to the transfer for a consideration of ownership, possession, or custody of tangible personal property or the rendering of services measured by the price of the tangible personal property transferred or services rendered and which is required by state or local law to be separately stated from the sales price by the seller, or which is customarily separately stated from the sales price, but does not include a tax imposed exclusively on the sale of a specifically identified commodity or article or class of commodities or articles; 8. "Use tax" means a nonrecurring tax, other than a sales tax, which (a) is imposed on or with respect to the exercise or enjoyment of any right or power over tangible personal property incident to the ownership, possession, or custody of that property or the leasing of that property from another including any consumption, keeping, retention, or other use of tangible personal property and (b) is complementary to a sales tax; 9. "Tax" means an income tax, capital stock tax, gross receipts tax, sales tax, use tax, and any other tax which has a multistate impact, except that the provisions of Articles III, IV, and V of this compact shall apply only to the taxes specifically designated therein, and the provisions of Article IX of this compact shall apply only in respect to determinations pursuant to Article IV. ARTICLE III Elements of Income Tax Laws Taxpayer Option, State and Local Taxes. 1. Any taxpayer subject to an income tax whose income is subject to apportionment and allocation for tax purposes pursuant to the laws of a party state or pursuant to the laws of subdivisions in two (2) or more party states may elect to apportion and allocate his income in the manner provided by the laws of such state or by the laws of such states and subdivisions without reference to this compact, or may elect to apportion and allocate in accordance with Article IV. This election for any tax year may be made in all party states or subdivisions thereof or in any one or more of the party states or subdivisions thereof without reference to the election made in the others. For the purposes of this paragraph, taxes imposed by subdivisions shall be considered separately from state taxes and the apportionment and allocation also may be applied to the entire tax base. In no instance wherein Article IV is employed for all subdivisions of a state may the sum of all apportionments and allocations to subdivisions within a state be greater than the apportionment and allocation that would be assignable to that state if the apportionment or allocation were being made with respect to a state income tax. Taxpayer Option, Short Form. 2. Each party state or any subdivision thereof which imposes an income tax shall provide by law that any taxpayer required to file a return, whose only activities within the taxing jurisdiction consist of sales and do not include owning or renting real estate or tangible personal property, and whose dollar volume of gross sales made during the tax year within the state or subdivision, as the case may be, is not in excess of one hundred thousand dollars ($100,000) may elect to report and pay any tax due on the basis of a percentage of such volume, and shall adopt rates which shall produce a tax which reasonably approximates the tax otherwise due. The Multistate Tax Commission, not more than once in five years, may adjust the one hundred thousand dollar ($100,000) figure in order to reflect such changes as may occur in the real value of the dollar, and such adjusted figure, upon adoption by the commission, shall replace the one hundred thousand dollar ($100,000) figure specifically provided herein. Each party state and subdivision thereof may make the same election available to taxpayers additional to those specified in this paragraph. Coverage. 3. Nothing in this article relates to the reporting or payment of any tax other than an income tax. ARTICLE IV Division of Income 1. As used in this Article, unless the context otherwise requires: (a) "Business income" means income arising from transactions and activity in the regular course of the taxpayer's trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer's regular trade or business operation; (b) "Commercial domicile" means the principal place from which the trade or business of the taxpayer is directed or managed; (c) "Compensation" means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services; (d) [Repealed.] (e) "Nonbusiness income" means all income other than business income; (f) "Public utility" means any business entity (1) which owns or operates any plant, equipment, property, franchise, or license for the transmission of communications, transportation of goods or persons, except by pipeline, or the production, transmission, sale, delivery, or furnishing of electricity, water, or steam; and (2) whose rates of charges for goods or services have been established or approved by a federal, state, or local government or governmental agency; (g) "Sales" means all gross receipts of the taxpayer not allocated under paragraphs of this article; (h) "State" means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof; (i) "This state" means the state in which the relevant tax return is filed or, in the case of application of this article to the apportionment and allocation of income for local tax purposes, the subdivision or local taxing district in which the relevant tax return is filed. 2. Any taxpayer having income from business activity which is taxable both within and without this state, other than activity as a railroad or public utility or the rendering of purely personal services by an individual, shall allocate and apportion his net income as provided in this article. If a taxpayer has income from business activity as a public utility but derives the greater percentage of his income from activities subject to this article, the taxpayer may elect to allocate and apportion his entire net income as provided in this article. 3. For purposes of allocation and apportionment of income under this article, a taxpayer is taxable in another state if (1) in that state he is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax, or (2) that state has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the state does or does not. 4. Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that they constitute nonbusiness income, shall be allocated as provided in paragraphs 5 through 8 of this article. 5. (a) Net rents and royalties from real property located in this state are allocable to this state. (b) Net rents and royalties from tangible personal property are allocable to this state: (1) if and to the extent that the property is utilized in this state, or (2) in their entirety if the taxpayer's commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized. (c) The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession. 6. (a) Capital gains and losses from sales of real property located in this state are allocable to this state. (b) Capital gains and losses from sales of tangible personal property are allocable to this state if (1) the property had a situs in this state at the time of the sale, or (2) the taxpayer's commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs. (c) Capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer's commercial domicile is in this state. 7. Interest and dividends are allocable to this state if the taxpayer's commercial domicile is in this state. 8. (a) Patent and copyright royalties are allocable to this state: (1) if and to the extent that the patent or copyright is utilized by the payer in this state, or (2) if and to the extent that the patent copyright is utilized by the payer in the state in which the taxpayer is not taxable and the taxpayer's commercial domicile is in this state. (b) A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer's commercial domicile is located. (c) A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the copyright is utilized in the state in which the taxpayer's commercial domicile is located. 9. For the tax year beginning January 1, 2021, all business income shall be apportioned to this state by multiplying the income by a fraction, the numerator of which is the total sales of the taxpayer in this state during the tax period and the denominator of which is the total sales of the taxpayer everywhere during the tax period. 10. [Repealed.] 11. [Repealed.] 12. [Repealed.] 13. [Repealed.] 14. [Repealed.] 15. [Repealed.] 16. Sales of tangible personal property are in this state if: (a) The property is delivered or shipped to a purchaser within this state regardless of the f.o.b. point or other conditions of the sale; or (b) The property is shipped from an office, store, warehouse, factory, or other place of storage in this state and the taxpayer is not taxable in the state of the purchaser, in which case the sales shall be sourced as follows: (1) For the tax year beginning on January 1, 2024, sales shall be sourced eighty-five and seventy-one hundredths percent (85.71%) within this state and fourteen and twenty-nine hundredths percent (14.29%) outside this state; (2) For the tax year beginning on January 1, 2025, sales shall be sourced seventy-one and forty-two hundredths percent (71.42%) within this state and twenty-eight and fifty-eight hundredths percent (28.58%) outside this state; (3) For the tax year beginning on January 1, 2026, sales shall be sourced fifty-seven and thirteen hundredths percent (57.13%) within this state and forty-two and eighty-seven hundredths percent (42.87%) outside this state; (4) For the tax year beginning on January 1, 2027, sales shall be sourced forty-two and eighty-four hundredths percent (42.84%) within this state and fifty-seven and sixteen hundredths percent (57.16%) outside this state; (5) For the tax year beginning on January 1, 2028, sales shall be sourced twenty-eight and fifty-five hundredths percent (28.55%) within this state and seventy-one and forty-five hundredths percent (71.45%) outside this state; (6) For the tax year beginning on January 1, 2029, sales shall be sourced fourteen and twenty-six hundredths percent (14.26%) within this state and eighty-five and seventy-four hundredths percent (85.74%) outside this state; and (7) For tax years beginning on or after January 1, 2030, sales shall be sourced one hundred percent (100%) outside this state. 17. Sales, other than sales of tangible personal property, are in this state if: (a) The income-producing activity is performed in this state; or (b) The income-producing activity is performed both in and outside this state and a greater proportion of the income-producing activity is performed in this state than in any other state, based on costs of performance. 18. If the allocation and apportionment provisions of this Article do not fairly represent the extent of the taxpayer's business activity in this state, the taxpayer may petition for or the tax administrator may require, in respect to all or any part of the taxpayer's business activity, if reasonable: (a) Separate accounting; (b) The inclusion of one (1) or more additional factors which will fairly represent the taxpayer's business activity in this state; or (c) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income. ARTICLE V Elements of Sales and Use Tax Laws Tax Credit. 1. Each purchaser liable for a use tax on tangible personal property shall be entitled to full credit for the combined amount or amounts of legally imposed sales or use taxes paid by him with respect to the same property to another state and any subdivision thereof. The credit shall be applied first against the amount of any use tax due the state, and any unused portion of the credit shall then be applied against the amount of any use tax due a subdivision. For purposes of applying this credit by other states to Arkansas residents, the term "gross receipts tax" as applied to Arkansas residents by Title 26, Chapter 52 of this Code, shall be synonymous with the term "sales tax" as used by the state applying such credit. Exemption Certificates, Vendors May Rely. 2. Whenever a vendor receives and accepts in good faith from a purchaser a resale or other exemption certificate or other written evidence of exemption authorized by the appropriate state or subdivision taxing authority, the vendor shall be relieved of liability for a sales or use tax with respect to the transaction. ARTICLE VI The Commission Organization and Management. 1. (a) The Multistate Tax Commission is hereby established. It shall be composed of one (1) "member" from each party state who shall be the head of the state agency charged with the administration of the types of taxes to which this compact applies. If there is more than one (1) such agency the state shall provide by law for the selection of the commission member from the heads of the relevant agencies. State law may provide that a member of the commission be represented by an alternate but only if there is on file with the commission written notification of the designation and identity of the alternate. The attorney general of each party state or his designee, or other counsel if the laws of the party state specifically provide, shall be entitled to attend the meetings of the commission, but shall not vote. Such attorneys general, designees, or other counsel shall receive all notices of meetings required under paragraph 1(e) of this article. (b) Each party state shall provide by law for the selection of representatives from its subdivisions affected by this compact to consult with the commission member from that state. (c) Each member shall be entitled to one (1) vote. The commission shall not act unless a majority of the members are present, and no action shall be binding unless approved by a majority of the total number of members. (d) The commission shall adopt an official seal to be used as it may provide. (e) The commission shall hold an annual meeting and such other regular meetings as its bylaws may provide and such special meetings as its executive committee may determine. The commission bylaws shall specify the dates of the annual and any other regular meetings, and shall provide for the giving of notice of annual, regular, and special meetings. Notices of special meetings shall include the reasons therefor and an agenda of the items to be considered. (f) The commission shall elect annually, from among its members, a chairman, a vice-chairman, and a treasurer. The commission shall appoint an executive director who shall serve at its pleasure, and it shall fix his duties and compensation. The executive director shall be secretary of the commission. The commission shall make provision for the bonding of such of its officers and employees as it may deem appropriate. (g) Irrespective of the civil service, personnel, or other merit system laws of any party state, the executive director shall appoint or discharge such personnel as may be necessary for the performance of the functions of the commission and shall fix their duties and compensation. The commission bylaws shall provide for personnel policies and programs. (h) The commission may borrow, accept, or contract for the services of personnel from any state, the United States, or any other governmental entity. (i) The commission may accept for any of its purposes and functions any and all donations and grants of money, equipment, supplies, materials, and services, conditional or otherwise, from any governmental entity, and may utilize and dispose of the same. (j) The commission may establish one or more offices for the transacting of its business. (k) The commission shall adopt bylaws for the conduct of its business. The commission shall publish its bylaws in convenient form, and shall file a copy of the bylaws and any amendments thereto with the appropriate agency or officer in each of the party states. (l) The commission annually shall make to the governor and legislature of each party state a report covering its activities for the preceding year. Any donation or grant accepted by the commission or services borrowed shall be reported in the annual report of the commission, and shall include the nature, amount, and conditions, if any, of the donation, gift, grant or services borrowed and the identity of the donor or lender. The commission may make additional reports as it may deem desirable. Committees. 2. (a) To assist in the conduct of its business when the full commission is not meeting, the commission shall have an executive committee of seven (7) members, including the chairman, vice-chairman, treasurer and four (4) other members elected annually by the commission. The executive committee, subject to the provisions of this compact and consistent with the policies of the commission, shall function as provided in the bylaws of the commission. (b) The commission may establish advisory and technical committees, membership on which may include private persons and public officials, in furthering any of its activities. Such committees may consider any matter of concern to the commission, including problems of special interest to any party state and problems dealing with particular types of taxes. (c) The commission may establish such additional committees as its bylaws may provide. Powers. 3. In addition to powers conferred elsewhere in this compact, the commission shall have power to: (a) Study state and local tax systems and particular types of state and local taxes; (b) Develop and recommend proposals for an increase in uniformity or compatibility of state and local tax laws with a view toward encouraging the simplification and improvement of state and local tax law and administration; (c) Compile and publish information as in its judgment would assist the party states in implementation of the compact and taxpayers in complying with state and local tax laws; (d) Do all things necessary and incidental to the administration of its functions pursuant to this compact. Finance. 4. (a) The commission shall submit to the Governor or designated officer or officers of each party state a budget of its estimated expenditures for such period as may be required by the laws of that state for presentation to the legislature thereof. (b) Each of the commission's budgets of estimated expenditures shall contain specific recommendations of the amounts to be appropriated by each of the party states. The total amount of appropriations requested under any such budget shall be apportioned among the party states as follows: one-tenth ( 1 / 10 ) in equal shares; and the remainder in proportion to the amount of revenue collected by each party state and its subdivisions from income taxes, capital stock taxes, gross receipts taxes, and sales and use taxes. In determining such amounts, the commission shall employ such available public sources of information as, in its judgment, present the most equitable and accurate comparisons among the party states. Each of the commission's budgets of estimated expenditures and requests for appropriations shall indicate the sources used in obtaining information employed in applying the formula contained in this paragraph. (c) The commission shall not pledge the credit of any party state. The commission may meet any of its obligations in whole or in part with funds available to it under paragraph 1(i) of this article; provided that the commission takes specific action setting aside such funds prior to incurring any obligation to be met in whole or in part in such manner. Except where the commission makes use of funds available to it under paragraph 1(i), the commission shall not incur any obligation prior to the allotment of funds by the party states adequate to meet the same. (d) The commission shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the commission shall be subject to the audit and accounting procedures established under its bylaws. All receipts and disbursements of funds handled by the commission shall be audited yearly by a certified or licensed public accountant and the report of the audit shall be included in and become part of the annual report of the commission. (e) The accounts of the commission shall be open at any reasonable time for inspection by duly constituted officers of the party states and by any persons authorized by the commission. (f) Nothing contained in this article shall be construed to prevent commission compliance with laws relating to audit or inspection of accounts by or on behalf of any government contributing to the support of the commission. ARTICLE VII Uniform Regulations and Forms 1. Whenever any two (2) or more party states, or subdivisions of party states, have uniform or similar provisions of law relating to an income tax, capital stock tax, gross receipts tax, sales or use tax, the commission may adopt uniform regulations for any phase of the administration of such law, including assertion of jurisdiction to tax, or prescribing uniform tax forms. The commission may also act with respect to the provisions of Article IV of this compact. 2. Prior to the adoption of any regulation, the commission shall: (a) As provided in its bylaws, hold at least one (1) public hearing on due notice to all affected party states and subdivisions thereof and to all taxpayers and other persons who have made timely request of the commission for advance notice of its regulation-making proceedings. (b) Afford all affected party states and subdivisions and interested persons an opportunity to submit relevant written data and views, which shall be considered fully by the commission. 3. The commission shall submit any regulations adopted by it to the appropriate officials of all party states and subdivisions to which they might apply. Each such state and subdivision shall consider any such regulation for adoption in accordance with its own laws and procedures. ARTICLE VIII Interstate Audits 1. This article shall be in force only in those party states that specifically provide therefor by statute. 2. Any party state or subdivision thereof desiring to make or participate in an audit of any accounts, books, papers, records, or other documents may request the commission to perform the audit on its behalf. In responding to the request, the commission shall have access to and may examine, at any reasonable time, such accounts, books, papers, records, and other documents and any relevant property or stock of merchandise. The commission may enter into agreements with party states or their subdivisions for assistance in performance of the audit. The commission shall make charges, to be paid by the state or local government or governments for which it performs the service, for any audits performed by it in order to reimburse itself for the actual costs incurred in making the audit. 3. The commission may require the attendance of any person within the state where it is conducting an audit or part thereof at a time and place fixed by it within such state for the purpose of giving testimony with respect to any account, book, paper, document, other record, property, or stock of merchandise being examined in connection with the audit. If the person is not within the jurisdiction, he may be required to attend for such purpose at any time and place fixed by the commission within the state of which he is a resident, provided that such state has adopted this article. 4. The commission may apply to any court having power to issue compulsory process for orders in aid of its powers and responsibilities pursuant to this article and any and all such courts shall have jurisdiction to issue such orders. Failure of any person to obey any such order shall be punishable as contempt of the issuing court. If the party or subject matter on account of which the commission seeks an order is within the jurisdiction of the court to which application is made, such application may be to a court in the state or subdivision on behalf of which the audit is being made or a court in the state in which the object of the order being sought is situated. The provisions of this paragraph apply only to courts in a state that has adopted this article. 5. The commission may decline to perform any audit requested if it finds that its available personnel or other resources are insufficient for the purpose or that, in the terms requested, the audit is impracticable of satisfactory performance. If the commission, on the basis of its experience, has reason to believe that an audit of a particular taxpayer, either at a particular time or on a particular schedule, would be of interest to a number of party states or their subdivisions, it may offer to make the audit or audits, the offer to be contingent on sufficient participation therein as determined by the commission. 6. Information obtained by any audit pursuant to this article shall be confidential and available only for tax purposes to party states, their subdivisions, or the United States. Availability of information shall be in accordance with the laws of the states for subdivisions on whose account the commission performs the audit, and only through the appropriate agencies or officers of such states or subdivisions. Nothing in this article shall be construed to require any taxpayer to keep records for any period not otherwise required by law. 7. Other arrangements made or authorized pursuant to law for cooperative audit by or on behalf of the party states or any of their subdivisions are not superseded or invalidated by this article. 8. In no event shall the commission make any charge against a taxpayer for an audit. 9. As used in this article, "tax," in addition to the meaning ascribed to it in Article II, means any tax or license fee imposed in whole or in part for revenue purposes. ARTICLE IX Arbitration 1. Whenever the commission finds a need for settling disputes concerning apportionments and allocations by arbitration, it may adopt a regulation placing this article in effect, notwithstanding the provisions of Article VII. 2. The commission shall select and maintain an arbitration panel composed of officers and employees of state and local governments and private persons who shall be knowledgeable and experienced in matters of tax law and administration. 3. Whenever a taxpayer who has elected to employ Article IV, or whenever the laws of the party state or subdivision thereof are substantially identical with the relevant provisions of Article IV, the taxpayer, by written notice to the commission and to each party state or subdivision thereof that would be affected, may secure arbitration of an apportionment or allocation, if he is dissatisfied with the final administrative determination of the tax agency of the state or subdivision with respect thereto on the ground that it would subject him to double or multiple taxation by two (2) or more party states or subdivisions thereof. Each party state and subdivision thereof hereby consents to the arbitration as provided herein, and agrees to be bound thereby. 4. The arbitration board shall be composed of one (1) person selected by the taxpayer, one (1) by the agency or agencies involved, and one (1) member of the commission's arbitration panel. If the agencies involved are unable to agree on the person to be selected by them, such person shall be selected by lot from the total membership of the arbitration panel. The two (2) persons selected for the board in the manner provided by the foregoing provisions of this paragraph shall jointly select the third member of the board. If they are unable to agree on the selection, the third member shall be selected by lot from among the total membership of the arbitration panel. No member of a board selected by lot shall be qualified to serve if he is an officer or employee or is otherwise affiliated with any party to the arbitration proceeding. Residence within the jurisdiction of a party to the arbitration proceeding shall not constitute affiliation within the meaning of this paragraph. 5. The board may sit in any state or subdivision party to the proceeding, in the state of the taxpayer's incorporation, residence, or domicile, in any state where the taxpayer does business, or in any place that it finds most appropriate for gaining access to evidence relevant to the matter before it. 6. The board shall give due notice of the times and places of its hearings. The parties shall be entitled to be heard, to present evidence, and to examine and cross-examine witnesses. The board shall act by majority vote. 7. The board shall have power to administer oaths, take testimony, subpoena and require the attendance of witnesses and the production of accounts, books, papers, records, and other documents, and issue commissions to take testimony. Subpoenas may be signed by any member of the board. In case of failure to obey a subpoena, and upon application by the board, any judge of a court of competent jurisdiction of the state in which the board is sitting or in which the person to whom the subpoena is directed may be found may make an order requiring compliance with the subpoena, and the court may punish failure to obey the order as a contempt. The provisions of this paragraph apply only in states that have adopted this article. 8. Unless the parties otherwise agree the expenses and other costs of the arbitration shall be assessed and allocated among the parties by the board in such manner as it may determine. The commission shall fix a schedule of compensation for members of arbitration boards and of other allowable expenses and costs. No officer or employee of a state or local government who serves as a member of a board shall be entitled to compensation therefor unless he is required on account of his service to forego the regular compensation attaching to his public employment, but any such board member shall be entitled to expenses. 9. The board shall determine the disputed apportionment or allocation and any matters necessary thereto. The determinations of the board shall be final for purposes of making the apportionment or allocation, but for no other purpose. 10. The board shall file with the commission and with each tax agency represented in the proceeding: the determination of the board; the board's written statement of its reasons therefor; the record of the board's proceedings; and any other documents required by the arbitration rules of the commission to be filed. 11. The commission shall publish the determinations of boards together with the statements of the reasons therefor. 12. The commission shall adopt and publish rules of procedure and practice and shall file a copy of such rules and of any amendment thereto with the appropriate agency or officer in each of the party states. 13. Nothing contained herein shall prevent at any time a written compromise of any matter or matters in dispute, if otherwise lawful, by the parties to the arbitration proceeding. ARTICLE X Entry Into Force and Withdrawal 1. This compact shall enter into force when enacted into law by any seven (7) states. Thereafter, this compact shall become effective as to any other state upon its enactment thereof. The commission shall arrange for notification of all party states whenever there is a new enactment of the compact. 2. Any party state may withdraw from this compact by enacting a statute repealing the same. No withdrawal shall affect any liability already incurred by or chargeable to a party state prior to the time of such withdrawal. 3. No proceeding commenced before an arbitration board prior to the withdrawal of a state and to which the withdrawing state or any subdivision thereof is a party shall be discontinued or terminated by the withdrawal, nor shall the board thereby lose jurisdiction over any of the parties to the proceeding necessary to make a binding determination therein. ARTICLE XI Effect on Other Laws and Jurisdiction Nothing in this compact shall be construed to: (a) Affect the power of any state or subdivision thereof to fix rates of taxation, except that a party state shall be obligated to implement Article III 2 of this compact. (b) Apply to any tax or fixed fee imposed for the registration of a motor vehicle or any tax on motor fuel, other than a sales tax; provided that the definition of "tax" in Article VIII 9 may apply for the purposes of that article and the commission's powers of study and recommendation pursuant to Article VI 3 may apply. (c) Withdraw or limit the jurisdiction of any state or local court or administrative officer or body with respect to any person, corporation, or other entity or subject matter, except to the extent that such jurisdiction is expressly conferred by or pursuant to this compact upon another agency or body. (d) Supersede or limit the jurisdiction of any court of the United States. ARTICLE XII Construction and Severability This compact shall be liberally construed so as to effectuate the purposes thereof. The provisions of this compact shall be severable and if any phrase, clause, sentence, or provision of this compact is declared to be contrary to the constitution of any state or of the United States or the applicability thereof to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this compact and the applicability thereof to any government, agency, person, or circumstance shall not be affected thereby. If this compact shall be held contrary to the constitution of any state participating therein, the compact shall remain in full force and effect as to the remaining party states and in full force and effect as to the state affected as to all severable matters. Amended by Act 2023, No. 485,§ 2, eff. 1/1/2024, app. for tax years beginning on or after 1/1/2024. Amended by Act 2023, No. 658,§ 2, eff. for tax years beginning on or after 1/1/2023. Amended by Act 2019, No. 822,§ 3, eff. 1/1/2021. Amended by Act 2019, No. 822,§ 2, eff. 1/1/2021. Acts 1967, No. 410, § 1; A.S.A. 1947, § 84-4101; Acts 1989, No. 395, § 1; 1989, No. 494, §§ 2, 4; 1995, No. 682, § 1.

The "Multistate Tax Compact" is enacted into law and entered into with all jurisdictions legally joining therein, in the form substantially as follows:

MULTISTATE TAX COMPACT

ARTICLE I Purposes The purposes of this compact are to: 1. Facilitate proper determination of state and local tax liability of multistate taxpayers, including the equitable apportionment of tax bases and settlement of apportionment disputes; 2. Promote uniformity or compatibility in significant components of tax systems; 3. Facilitate taxpayer convenience and compliance in the filing of tax returns and in other phases of tax administration; 4. Avoid duplicative taxation.

The purposes of this compact are to:

1. Facilitate proper determination of state and local tax liability of multistate taxpayers, including the equitable apportionment of tax bases and settlement of apportionment disputes;

2. Promote uniformity or compatibility in significant components of tax systems;

3. Facilitate taxpayer convenience and compliance in the filing of tax returns and in other phases of tax administration;

4. Avoid duplicative taxation.

ARTICLE II Definitions As used in this compact: 1. "State" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession of the United States; 2. "Subdivision" means any governmental unit or special district of a state; 3. "Taxpayer" means any corporation, partnership, firm, association, governmental unit or agency, or person acting as a business entity in more than one state; 4. "Income tax" means a tax imposed on or measured by net income including any tax imposed on or measured by an amount arrived at by deducting expenses from gross income, one (1) or more forms of which expenses are not specifically and directly related to particular transactions; 5. "Capital stock tax" means a tax measured in any way by the capital of a corporation considered in its entirety; 6. "Gross receipts tax" means a tax, other than a sales tax, which is imposed on or measured by the gross volume of business, in terms of gross receipts or in other terms, and in the determination of which no deduction is allowed which would constitute the tax on income tax; 7. "Sales tax" imposed with respect to the transfer for a consideration of ownership, possession, or custody of tangible personal property or the rendering of services measured by the price of the tangible personal property transferred or services rendered and which is required by state or local law to be separately stated from the sales price by the seller, or which is customarily separately stated from the sales price, but does not include a tax imposed exclusively on the sale of a specifically identified commodity or article or class of commodities or articles; 8. "Use tax" means a nonrecurring tax, other than a sales tax, which (a) is imposed on or with respect to the exercise or enjoyment of any right or power over tangible personal property incident to the ownership, possession, or custody of that property or the leasing of that property from another including any consumption, keeping, retention, or other use of tangible personal property and (b) is complementary to a sales tax; 9. "Tax" means an income tax, capital stock tax, gross receipts tax, sales tax, use tax, and any other tax which has a multistate impact, except that the provisions of Articles III, IV, and V of this compact shall apply only to the taxes specifically designated therein, and the provisions of Article IX of this compact shall apply only in respect to determinations pursuant to Article IV.

As used in this compact:

1. "State" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession of the United States;

2. "Subdivision" means any governmental unit or special district of a state;

3. "Taxpayer" means any corporation, partnership, firm, association, governmental unit or agency, or person acting as a business entity in more than one state;

4. "Income tax" means a tax imposed on or measured by net income including any tax imposed on or measured by an amount arrived at by deducting expenses from gross income, one (1) or more forms of which expenses are not specifically and directly related to particular transactions;

5. "Capital stock tax" means a tax measured in any way by the capital of a corporation considered in its entirety;

6. "Gross receipts tax" means a tax, other than a sales tax, which is imposed on or measured by the gross volume of business, in terms of gross receipts or in other terms, and in the determination of which no deduction is allowed which would constitute the tax on income tax;

7. "Sales tax" imposed with respect to the transfer for a consideration of ownership, possession, or custody of tangible personal property or the rendering of services measured by the price of the tangible personal property transferred or services rendered and which is required by state or local law to be separately stated from the sales price by the seller, or which is customarily separately stated from the sales price, but does not include a tax imposed exclusively on the sale of a specifically identified commodity or article or class of commodities or articles;

8. "Use tax" means a nonrecurring tax, other than a sales tax, which (a) is imposed on or with respect to the exercise or enjoyment of any right or power over tangible personal property incident to the ownership, possession, or custody of that property or the leasing of that property from another including any consumption, keeping, retention, or other use of tangible personal property and (b) is complementary to a sales tax;

9. "Tax" means an income tax, capital stock tax, gross receipts tax, sales tax, use tax, and any other tax which has a multistate impact, except that the provisions of Articles III, IV, and V of this compact shall apply only to the taxes specifically designated therein, and the provisions of Article IX of this compact shall apply only in respect to determinations pursuant to Article IV.

ARTICLE III Elements of Income Tax Laws Taxpayer Option, State and Local Taxes. 1. Any taxpayer subject to an income tax whose income is subject to apportionment and allocation for tax purposes pursuant to the laws of a party state or pursuant to the laws of subdivisions in two (2) or more party states may elect to apportion and allocate his income in the manner provided by the laws of such state or by the laws of such states and subdivisions without reference to this compact, or may elect to apportion and allocate in accordance with Article IV. This election for any tax year may be made in all party states or subdivisions thereof or in any one or more of the party states or subdivisions thereof without reference to the election made in the others. For the purposes of this paragraph, taxes imposed by subdivisions shall be considered separately from state taxes and the apportionment and allocation also may be applied to the entire tax base. In no instance wherein Article IV is employed for all subdivisions of a state may the sum of all apportionments and allocations to subdivisions within a state be greater than the apportionment and allocation that would be assignable to that state if the apportionment or allocation were being made with respect to a state income tax. Taxpayer Option, Short Form. 2. Each party state or any subdivision thereof which imposes an income tax shall provide by law that any taxpayer required to file a return, whose only activities within the taxing jurisdiction consist of sales and do not include owning or renting real estate or tangible personal property, and whose dollar volume of gross sales made during the tax year within the state or subdivision, as the case may be, is not in excess of one hundred thousand dollars ($100,000) may elect to report and pay any tax due on the basis of a percentage of such volume, and shall adopt rates which shall produce a tax which reasonably approximates the tax otherwise due. The Multistate Tax Commission, not more than once in five years, may adjust the one hundred thousand dollar ($100,000) figure in order to reflect such changes as may occur in the real value of the dollar, and such adjusted figure, upon adoption by the commission, shall replace the one hundred thousand dollar ($100,000) figure specifically provided herein. Each party state and subdivision thereof may make the same election available to taxpayers additional to those specified in this paragraph. Coverage. 3. Nothing in this article relates to the reporting or payment of any tax other than an income tax.

Taxpayer Option, State and Local Taxes.

1. Any taxpayer subject to an income tax whose income is subject to apportionment and allocation for tax purposes pursuant to the laws of a party state or pursuant to the laws of subdivisions in two (2) or more party states may elect to apportion and allocate his income in the manner provided by the laws of such state or by the laws of such states and subdivisions without reference to this compact, or may elect to apportion and allocate in accordance with Article IV. This election for any tax year may be made in all party states or subdivisions thereof or in any one or more of the party states or subdivisions thereof without reference to the election made in the others. For the purposes of this paragraph, taxes imposed by subdivisions shall be considered separately from state taxes and the apportionment and allocation also may be applied to the entire tax base. In no instance wherein Article IV is employed for all subdivisions of a state may the sum of all apportionments and allocations to subdivisions within a state be greater than the apportionment and allocation that would be assignable to that state if the apportionment or allocation were being made with respect to a state income tax. Taxpayer Option, Short Form.

Taxpayer Option, Short Form.

2. Each party state or any subdivision thereof which imposes an income tax shall provide by law that any taxpayer required to file a return, whose only activities within the taxing jurisdiction consist of sales and do not include owning or renting real estate or tangible personal property, and whose dollar volume of gross sales made during the tax year within the state or subdivision, as the case may be, is not in excess of one hundred thousand dollars ($100,000) may elect to report and pay any tax due on the basis of a percentage of such volume, and shall adopt rates which shall produce a tax which reasonably approximates the tax otherwise due. The Multistate Tax Commission, not more than once in five years, may adjust the one hundred thousand dollar ($100,000) figure in order to reflect such changes as may occur in the real value of the dollar, and such adjusted figure, upon adoption by the commission, shall replace the one hundred thousand dollar ($100,000) figure specifically provided herein. Each party state and subdivision thereof may make the same election available to taxpayers additional to those specified in this paragraph. Coverage.

Coverage.

3. Nothing in this article relates to the reporting or payment of any tax other than an income tax.

ARTICLE IV Division of Income 1. As used in this Article, unless the context otherwise requires: (a) "Business income" means income arising from transactions and activity in the regular course of the taxpayer's trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer's regular trade or business operation; (b) "Commercial domicile" means the principal place from which the trade or business of the taxpayer is directed or managed; (c) "Compensation" means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services; (d) [Repealed.] (e) "Nonbusiness income" means all income other than business income; (f) "Public utility" means any business entity (1) which owns or operates any plant, equipment, property, franchise, or license for the transmission of communications, transportation of goods or persons, except by pipeline, or the production, transmission, sale, delivery, or furnishing of electricity, water, or steam; and (2) whose rates of charges for goods or services have been established or approved by a federal, state, or local government or governmental agency; (g) "Sales" means all gross receipts of the taxpayer not allocated under paragraphs of this article; (h) "State" means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof; (i) "This state" means the state in which the relevant tax return is filed or, in the case of application of this article to the apportionment and allocation of income for local tax purposes, the subdivision or local taxing district in which the relevant tax return is filed. 2. Any taxpayer having income from business activity which is taxable both within and without this state, other than activity as a railroad or public utility or the rendering of purely personal services by an individual, shall allocate and apportion his net income as provided in this article. If a taxpayer has income from business activity as a public utility but derives the greater percentage of his income from activities subject to this article, the taxpayer may elect to allocate and apportion his entire net income as provided in this article. 3. For purposes of allocation and apportionment of income under this article, a taxpayer is taxable in another state if (1) in that state he is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax, or (2) that state has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the state does or does not. 4. Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that they constitute nonbusiness income, shall be allocated as provided in paragraphs 5 through 8 of this article. 5. (a) Net rents and royalties from real property located in this state are allocable to this state. (b) Net rents and royalties from tangible personal property are allocable to this state: (1) if and to the extent that the property is utilized in this state, or (2) in their entirety if the taxpayer's commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized. (c) The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession. 6. (a) Capital gains and losses from sales of real property located in this state are allocable to this state. (b) Capital gains and losses from sales of tangible personal property are allocable to this state if (1) the property had a situs in this state at the time of the sale, or (2) the taxpayer's commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs. (c) Capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer's commercial domicile is in this state. 7. Interest and dividends are allocable to this state if the taxpayer's commercial domicile is in this state. 8. (a) Patent and copyright royalties are allocable to this state: (1) if and to the extent that the patent or copyright is utilized by the payer in this state, or (2) if and to the extent that the patent copyright is utilized by the payer in the state in which the taxpayer is not taxable and the taxpayer's commercial domicile is in this state. (b) A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer's commercial domicile is located. (c) A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the copyright is utilized in the state in which the taxpayer's commercial domicile is located. 9. For the tax year beginning January 1, 2021, all business income shall be apportioned to this state by multiplying the income by a fraction, the numerator of which is the total sales of the taxpayer in this state during the tax period and the denominator of which is the total sales of the taxpayer everywhere during the tax period. 10. [Repealed.] 11. [Repealed.] 12. [Repealed.] 13. [Repealed.] 14. [Repealed.] 15. [Repealed.] 16. Sales of tangible personal property are in this state if: (a) The property is delivered or shipped to a purchaser within this state regardless of the f.o.b. point or other conditions of the sale; or (b) The property is shipped from an office, store, warehouse, factory, or other place of storage in this state and the taxpayer is not taxable in the state of the purchaser, in which case the sales shall be sourced as follows: (1) For the tax year beginning on January 1, 2024, sales shall be sourced eighty-five and seventy-one hundredths percent (85.71%) within this state and fourteen and twenty-nine hundredths percent (14.29%) outside this state; (2) For the tax year beginning on January 1, 2025, sales shall be sourced seventy-one and forty-two hundredths percent (71.42%) within this state and twenty-eight and fifty-eight hundredths percent (28.58%) outside this state; (3) For the tax year beginning on January 1, 2026, sales shall be sourced fifty-seven and thirteen hundredths percent (57.13%) within this state and forty-two and eighty-seven hundredths percent (42.87%) outside this state; (4) For the tax year beginning on January 1, 2027, sales shall be sourced forty-two and eighty-four hundredths percent (42.84%) within this state and fifty-seven and sixteen hundredths percent (57.16%) outside this state; (5) For the tax year beginning on January 1, 2028, sales shall be sourced twenty-eight and fifty-five hundredths percent (28.55%) within this state and seventy-one and forty-five hundredths percent (71.45%) outside this state; (6) For the tax year beginning on January 1, 2029, sales shall be sourced fourteen and twenty-six hundredths percent (14.26%) within this state and eighty-five and seventy-four hundredths percent (85.74%) outside this state; and (7) For tax years beginning on or after January 1, 2030, sales shall be sourced one hundred percent (100%) outside this state. 17. Sales, other than sales of tangible personal property, are in this state if: (a) The income-producing activity is performed in this state; or (b) The income-producing activity is performed both in and outside this state and a greater proportion of the income-producing activity is performed in this state than in any other state, based on costs of performance. 18. If the allocation and apportionment provisions of this Article do not fairly represent the extent of the taxpayer's business activity in this state, the taxpayer may petition for or the tax administrator may require, in respect to all or any part of the taxpayer's business activity, if reasonable: (a) Separate accounting; (b) The inclusion of one (1) or more additional factors which will fairly represent the taxpayer's business activity in this state; or (c) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income.

1. As used in this Article, unless the context otherwise requires: (a) "Business income" means income arising from transactions and activity in the regular course of the taxpayer's trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer's regular trade or business operation; (b) "Commercial domicile" means the principal place from which the trade or business of the taxpayer is directed or managed; (c) "Compensation" means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services; (d) [Repealed.] (e) "Nonbusiness income" means all income other than business income; (f) "Public utility" means any business entity (1) which owns or operates any plant, equipment, property, franchise, or license for the transmission of communications, transportation of goods or persons, except by pipeline, or the production, transmission, sale, delivery, or furnishing of electricity, water, or steam; and (2) whose rates of charges for goods or services have been established or approved by a federal, state, or local government or governmental agency; (g) "Sales" means all gross receipts of the taxpayer not allocated under paragraphs of this article; (h) "State" means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof; (i) "This state" means the state in which the relevant tax return is filed or, in the case of application of this article to the apportionment and allocation of income for local tax purposes, the subdivision or local taxing district in which the relevant tax return is filed.

(a) "Business income" means income arising from transactions and activity in the regular course of the taxpayer's trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer's regular trade or business operation;

(b) "Commercial domicile" means the principal place from which the trade or business of the taxpayer is directed or managed;

(c) "Compensation" means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services;

(d) [Repealed.]

(e) "Nonbusiness income" means all income other than business income;

(f) "Public utility" means any business entity (1) which owns or operates any plant, equipment, property, franchise, or license for the transmission of communications, transportation of goods or persons, except by pipeline, or the production, transmission, sale, delivery, or furnishing of electricity, water, or steam; and (2) whose rates of charges for goods or services have been established or approved by a federal, state, or local government or governmental agency;

(g) "Sales" means all gross receipts of the taxpayer not allocated under paragraphs of this article;

(h) "State" means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof;

(i) "This state" means the state in which the relevant tax return is filed or, in the case of application of this article to the apportionment and allocation of income for local tax purposes, the subdivision or local taxing district in which the relevant tax return is filed.

2. Any taxpayer having income from business activity which is taxable both within and without this state, other than activity as a railroad or public utility or the rendering of purely personal services by an individual, shall allocate and apportion his net income as provided in this article. If a taxpayer has income from business activity as a public utility but derives the greater percentage of his income from activities subject to this article, the taxpayer may elect to allocate and apportion his entire net income as provided in this article.

3. For purposes of allocation and apportionment of income under this article, a taxpayer is taxable in another state if (1) in that state he is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax, or (2) that state has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the state does or does not.

4. Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that they constitute nonbusiness income, shall be allocated as provided in paragraphs 5 through 8 of this article.

5. (a) Net rents and royalties from real property located in this state are allocable to this state. (b) Net rents and royalties from tangible personal property are allocable to this state: (1) if and to the extent that the property is utilized in this state, or (2) in their entirety if the taxpayer's commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized. (c) The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession.

(a) Net rents and royalties from real property located in this state are allocable to this state.

(b) Net rents and royalties from tangible personal property are allocable to this state: (1) if and to the extent that the property is utilized in this state, or (2) in their entirety if the taxpayer's commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.

(1) if and to the extent that the property is utilized in this state, or

(2) in their entirety if the taxpayer's commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.

(c) The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession.

6. (a) Capital gains and losses from sales of real property located in this state are allocable to this state. (b) Capital gains and losses from sales of tangible personal property are allocable to this state if (1) the property had a situs in this state at the time of the sale, or (2) the taxpayer's commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs. (c) Capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer's commercial domicile is in this state.

(a) Capital gains and losses from sales of real property located in this state are allocable to this state.

(b) Capital gains and losses from sales of tangible personal property are allocable to this state if (1) the property had a situs in this state at the time of the sale, or (2) the taxpayer's commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs.

(c) Capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer's commercial domicile is in this state.

7. Interest and dividends are allocable to this state if the taxpayer's commercial domicile is in this state.

8. (a) Patent and copyright royalties are allocable to this state: (1) if and to the extent that the patent or copyright is utilized by the payer in this state, or (2) if and to the extent that the patent copyright is utilized by the payer in the state in which the taxpayer is not taxable and the taxpayer's commercial domicile is in this state. (b) A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer's commercial domicile is located. (c) A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the copyright is utilized in the state in which the taxpayer's commercial domicile is located.

(a) Patent and copyright royalties are allocable to this state: (1) if and to the extent that the patent or copyright is utilized by the payer in this state, or (2) if and to the extent that the patent copyright is utilized by the payer in the state in which the taxpayer is not taxable and the taxpayer's commercial domicile is in this state.

(1) if and to the extent that the patent or copyright is utilized by the payer in this state, or

(2) if and to the extent that the patent copyright is utilized by the payer in the state in which the taxpayer is not taxable and the taxpayer's commercial domicile is in this state.

(b) A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer's commercial domicile is located.

(c) A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the copyright is utilized in the state in which the taxpayer's commercial domicile is located.

9. For the tax year beginning January 1, 2021, all business income shall be apportioned to this state by multiplying the income by a fraction, the numerator of which is the total sales of the taxpayer in this state during the tax period and the denominator of which is the total sales of the taxpayer everywhere during the tax period.

10. [Repealed.]

11. [Repealed.]

12. [Repealed.]

13. [Repealed.]

14. [Repealed.]

15. [Repealed.]

16. Sales of tangible personal property are in this state if: (a) The property is delivered or shipped to a purchaser within this state regardless of the f.o.b. point or other conditions of the sale; or (b) The property is shipped from an office, store, warehouse, factory, or other place of storage in this state and the taxpayer is not taxable in the state of the purchaser, in which case the sales shall be sourced as follows: (1) For the tax year beginning on January 1, 2024, sales shall be sourced eighty-five and seventy-one hundredths percent (85.71%) within this state and fourteen and twenty-nine hundredths percent (14.29%) outside this state; (2) For the tax year beginning on January 1, 2025, sales shall be sourced seventy-one and forty-two hundredths percent (71.42%) within this state and twenty-eight and fifty-eight hundredths percent (28.58%) outside this state; (3) For the tax year beginning on January 1, 2026, sales shall be sourced fifty-seven and thirteen hundredths percent (57.13%) within this state and forty-two and eighty-seven hundredths percent (42.87%) outside this state; (4) For the tax year beginning on January 1, 2027, sales shall be sourced forty-two and eighty-four hundredths percent (42.84%) within this state and fifty-seven and sixteen hundredths percent (57.16%) outside this state; (5) For the tax year beginning on January 1, 2028, sales shall be sourced twenty-eight and fifty-five hundredths percent (28.55%) within this state and seventy-one and forty-five hundredths percent (71.45%) outside this state; (6) For the tax year beginning on January 1, 2029, sales shall be sourced fourteen and twenty-six hundredths percent (14.26%) within this state and eighty-five and seventy-four hundredths percent (85.74%) outside this state; and (7) For tax years beginning on or after January 1, 2030, sales shall be sourced one hundred percent (100%) outside this state.

(a) The property is delivered or shipped to a purchaser within this state regardless of the f.o.b. point or other conditions of the sale; or

(b) The property is shipped from an office, store, warehouse, factory, or other place of storage in this state and the taxpayer is not taxable in the state of the purchaser, in which case the sales shall be sourced as follows: (1) For the tax year beginning on January 1, 2024, sales shall be sourced eighty-five and seventy-one hundredths percent (85.71%) within this state and fourteen and twenty-nine hundredths percent (14.29%) outside this state; (2) For the tax year beginning on January 1, 2025, sales shall be sourced seventy-one and forty-two hundredths percent (71.42%) within this state and twenty-eight and fifty-eight hundredths percent (28.58%) outside this state; (3) For the tax year beginning on January 1, 2026, sales shall be sourced fifty-seven and thirteen hundredths percent (57.13%) within this state and forty-two and eighty-seven hundredths percent (42.87%) outside this state; (4) For the tax year beginning on January 1, 2027, sales shall be sourced forty-two and eighty-four hundredths percent (42.84%) within this state and fifty-seven and sixteen hundredths percent (57.16%) outside this state; (5) For the tax year beginning on January 1, 2028, sales shall be sourced twenty-eight and fifty-five hundredths percent (28.55%) within this state and seventy-one and forty-five hundredths percent (71.45%) outside this state; (6) For the tax year beginning on January 1, 2029, sales shall be sourced fourteen and twenty-six hundredths percent (14.26%) within this state and eighty-five and seventy-four hundredths percent (85.74%) outside this state; and (7) For tax years beginning on or after January 1, 2030, sales shall be sourced one hundred percent (100%) outside this state.

(1) For the tax year beginning on January 1, 2024, sales shall be sourced eighty-five and seventy-one hundredths percent (85.71%) within this state and fourteen and twenty-nine hundredths percent (14.29%) outside this state;

(2) For the tax year beginning on January 1, 2025, sales shall be sourced seventy-one and forty-two hundredths percent (71.42%) within this state and twenty-eight and fifty-eight hundredths percent (28.58%) outside this state;

(3) For the tax year beginning on January 1, 2026, sales shall be sourced fifty-seven and thirteen hundredths percent (57.13%) within this state and forty-two and eighty-seven hundredths percent (42.87%) outside this state;

(4) For the tax year beginning on January 1, 2027, sales shall be sourced forty-two and eighty-four hundredths percent (42.84%) within this state and fifty-seven and sixteen hundredths percent (57.16%) outside this state;

(5) For the tax year beginning on January 1, 2028, sales shall be sourced twenty-eight and fifty-five hundredths percent (28.55%) within this state and seventy-one and forty-five hundredths percent (71.45%) outside this state;

(6) For the tax year beginning on January 1, 2029, sales shall be sourced fourteen and twenty-six hundredths percent (14.26%) within this state and eighty-five and seventy-four hundredths percent (85.74%) outside this state; and

(7) For tax years beginning on or after January 1, 2030, sales shall be sourced one hundred percent (100%) outside this state.

17. Sales, other than sales of tangible personal property, are in this state if: (a) The income-producing activity is performed in this state; or (b) The income-producing activity is performed both in and outside this state and a greater proportion of the income-producing activity is performed in this state than in any other state, based on costs of performance.

(a) The income-producing activity is performed in this state; or

(b) The income-producing activity is performed both in and outside this state and a greater proportion of the income-producing activity is performed in this state than in any other state, based on costs of performance.

18. If the allocation and apportionment provisions of this Article do not fairly represent the extent of the taxpayer's business activity in this state, the taxpayer may petition for or the tax administrator may require, in respect to all or any part of the taxpayer's business activity, if reasonable: (a) Separate accounting; (b) The inclusion of one (1) or more additional factors which will fairly represent the taxpayer's business activity in this state; or (c) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income.

(a) Separate accounting;

(b) The inclusion of one (1) or more additional factors which will fairly represent the taxpayer's business activity in this state; or

(c) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income.

ARTICLE V Elements of Sales and Use Tax Laws Tax Credit. 1. Each purchaser liable for a use tax on tangible personal property shall be entitled to full credit for the combined amount or amounts of legally imposed sales or use taxes paid by him with respect to the same property to another state and any subdivision thereof. The credit shall be applied first against the amount of any use tax due the state, and any unused portion of the credit shall then be applied against the amount of any use tax due a subdivision. For purposes of applying this credit by other states to Arkansas residents, the term "gross receipts tax" as applied to Arkansas residents by Title 26, Chapter 52 of this Code, shall be synonymous with the term "sales tax" as used by the state applying such credit. Exemption Certificates, Vendors May Rely. 2. Whenever a vendor receives and accepts in good faith from a purchaser a resale or other exemption certificate or other written evidence of exemption authorized by the appropriate state or subdivision taxing authority, the vendor shall be relieved of liability for a sales or use tax with respect to the transaction.

Tax Credit.

1. Each purchaser liable for a use tax on tangible personal property shall be entitled to full credit for the combined amount or amounts of legally imposed sales or use taxes paid by him with respect to the same property to another state and any subdivision thereof. The credit shall be applied first against the amount of any use tax due the state, and any unused portion of the credit shall then be applied against the amount of any use tax due a subdivision. For purposes of applying this credit by other states to Arkansas residents, the term "gross receipts tax" as applied to Arkansas residents by Title 26, Chapter 52 of this Code, shall be synonymous with the term "sales tax" as used by the state applying such credit. Exemption Certificates, Vendors May Rely.

Exemption Certificates, Vendors May Rely.

2. Whenever a vendor receives and accepts in good faith from a purchaser a resale or other exemption certificate or other written evidence of exemption authorized by the appropriate state or subdivision taxing authority, the vendor shall be relieved of liability for a sales or use tax with respect to the transaction.

ARTICLE VI The Commission Organization and Management. 1. (a) The Multistate Tax Commission is hereby established. It shall be composed of one (1) "member" from each party state who shall be the head of the state agency charged with the administration of the types of taxes to which this compact applies. If there is more than one (1) such agency the state shall provide by law for the selection of the commission member from the heads of the relevant agencies. State law may provide that a member of the commission be represented by an alternate but only if there is on file with the commission written notification of the designation and identity of the alternate. The attorney general of each party state or his designee, or other counsel if the laws of the party state specifically provide, shall be entitled to attend the meetings of the commission, but shall not vote. Such attorneys general, designees, or other counsel shall receive all notices of meetings required under paragraph 1(e) of this article. (b) Each party state shall provide by law for the selection of representatives from its subdivisions affected by this compact to consult with the commission member from that state. (c) Each member shall be entitled to one (1) vote. The commission shall not act unless a majority of the members are present, and no action shall be binding unless approved by a majority of the total number of members. (d) The commission shall adopt an official seal to be used as it may provide. (e) The commission shall hold an annual meeting and such other regular meetings as its bylaws may provide and such special meetings as its executive committee may determine. The commission bylaws shall specify the dates of the annual and any other regular meetings, and shall provide for the giving of notice of annual, regular, and special meetings. Notices of special meetings shall include the reasons therefor and an agenda of the items to be considered. (f) The commission shall elect annually, from among its members, a chairman, a vice-chairman, and a treasurer. The commission shall appoint an executive director who shall serve at its pleasure, and it shall fix his duties and compensation. The executive director shall be secretary of the commission. The commission shall make provision for the bonding of such of its officers and employees as it may deem appropriate. (g) Irrespective of the civil service, personnel, or other merit system laws of any party state, the executive director shall appoint or discharge such personnel as may be necessary for the performance of the functions of the commission and shall fix their duties and compensation. The commission bylaws shall provide for personnel policies and programs. (h) The commission may borrow, accept, or contract for the services of personnel from any state, the United States, or any other governmental entity. (i) The commission may accept for any of its purposes and functions any and all donations and grants of money, equipment, supplies, materials, and services, conditional or otherwise, from any governmental entity, and may utilize and dispose of the same. (j) The commission may establish one or more offices for the transacting of its business. (k) The commission shall adopt bylaws for the conduct of its business. The commission shall publish its bylaws in convenient form, and shall file a copy of the bylaws and any amendments thereto with the appropriate agency or officer in each of the party states. (l) The commission annually shall make to the governor and legislature of each party state a report covering its activities for the preceding year. Any donation or grant accepted by the commission or services borrowed shall be reported in the annual report of the commission, and shall include the nature, amount, and conditions, if any, of the donation, gift, grant or services borrowed and the identity of the donor or lender. The commission may make additional reports as it may deem desirable. Committees. 2. (a) To assist in the conduct of its business when the full commission is not meeting, the commission shall have an executive committee of seven (7) members, including the chairman, vice-chairman, treasurer and four (4) other members elected annually by the commission. The executive committee, subject to the provisions of this compact and consistent with the policies of the commission, shall function as provided in the bylaws of the commission. (b) The commission may establish advisory and technical committees, membership on which may include private persons and public officials, in furthering any of its activities. Such committees may consider any matter of concern to the commission, including problems of special interest to any party state and problems dealing with particular types of taxes. (c) The commission may establish such additional committees as its bylaws may provide. Powers. 3. In addition to powers conferred elsewhere in this compact, the commission shall have power to: (a) Study state and local tax systems and particular types of state and local taxes; (b) Develop and recommend proposals for an increase in uniformity or compatibility of state and local tax laws with a view toward encouraging the simplification and improvement of state and local tax law and administration; (c) Compile and publish information as in its judgment would assist the party states in implementation of the compact and taxpayers in complying with state and local tax laws; (d) Do all things necessary and incidental to the administration of its functions pursuant to this compact. Finance. 4. (a) The commission shall submit to the Governor or designated officer or officers of each party state a budget of its estimated expenditures for such period as may be required by the laws of that state for presentation to the legislature thereof. (b) Each of the commission's budgets of estimated expenditures shall contain specific recommendations of the amounts to be appropriated by each of the party states. The total amount of appropriations requested under any such budget shall be apportioned among the party states as follows: one-tenth ( 1 / 10 ) in equal shares; and the remainder in proportion to the amount of revenue collected by each party state and its subdivisions from income taxes, capital stock taxes, gross receipts taxes, and sales and use taxes. In determining such amounts, the commission shall employ such available public sources of information as, in its judgment, present the most equitable and accurate comparisons among the party states. Each of the commission's budgets of estimated expenditures and requests for appropriations shall indicate the sources used in obtaining information employed in applying the formula contained in this paragraph. (c) The commission shall not pledge the credit of any party state. The commission may meet any of its obligations in whole or in part with funds available to it under paragraph 1(i) of this article; provided that the commission takes specific action setting aside such funds prior to incurring any obligation to be met in whole or in part in such manner. Except where the commission makes use of funds available to it under paragraph 1(i), the commission shall not incur any obligation prior to the allotment of funds by the party states adequate to meet the same. (d) The commission shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the commission shall be subject to the audit and accounting procedures established under its bylaws. All receipts and disbursements of funds handled by the commission shall be audited yearly by a certified or licensed public accountant and the report of the audit shall be included in and become part of the annual report of the commission. (e) The accounts of the commission shall be open at any reasonable time for inspection by duly constituted officers of the party states and by any persons authorized by the commission. (f) Nothing contained in this article shall be construed to prevent commission compliance with laws relating to audit or inspection of accounts by or on behalf of any government contributing to the support of the commission.

Organization and Management.

1. (a) The Multistate Tax Commission is hereby established. It shall be composed of one (1) "member" from each party state who shall be the head of the state agency charged with the administration of the types of taxes to which this compact applies. If there is more than one (1) such agency the state shall provide by law for the selection of the commission member from the heads of the relevant agencies. State law may provide that a member of the commission be represented by an alternate but only if there is on file with the commission written notification of the designation and identity of the alternate. The attorney general of each party state or his designee, or other counsel if the laws of the party state specifically provide, shall be entitled to attend the meetings of the commission, but shall not vote. Such attorneys general, designees, or other counsel shall receive all notices of meetings required under paragraph 1(e) of this article. (b) Each party state shall provide by law for the selection of representatives from its subdivisions affected by this compact to consult with the commission member from that state. (c) Each member shall be entitled to one (1) vote. The commission shall not act unless a majority of the members are present, and no action shall be binding unless approved by a majority of the total number of members. (d) The commission shall adopt an official seal to be used as it may provide. (e) The commission shall hold an annual meeting and such other regular meetings as its bylaws may provide and such special meetings as its executive committee may determine. The commission bylaws shall specify the dates of the annual and any other regular meetings, and shall provide for the giving of notice of annual, regular, and special meetings. Notices of special meetings shall include the reasons therefor and an agenda of the items to be considered. (f) The commission shall elect annually, from among its members, a chairman, a vice-chairman, and a treasurer. The commission shall appoint an executive director who shall serve at its pleasure, and it shall fix his duties and compensation. The executive director shall be secretary of the commission. The commission shall make provision for the bonding of such of its officers and employees as it may deem appropriate. (g) Irrespective of the civil service, personnel, or other merit system laws of any party state, the executive director shall appoint or discharge such personnel as may be necessary for the performance of the functions of the commission and shall fix their duties and compensation. The commission bylaws shall provide for personnel policies and programs. (h) The commission may borrow, accept, or contract for the services of personnel from any state, the United States, or any other governmental entity. (i) The commission may accept for any of its purposes and functions any and all donations and grants of money, equipment, supplies, materials, and services, conditional or otherwise, from any governmental entity, and may utilize and dispose of the same. (j) The commission may establish one or more offices for the transacting of its business. (k) The commission shall adopt bylaws for the conduct of its business. The commission shall publish its bylaws in convenient form, and shall file a copy of the bylaws and any amendments thereto with the appropriate agency or officer in each of the party states. (l) The commission annually shall make to the governor and legislature of each party state a report covering its activities for the preceding year. Any donation or grant accepted by the commission or services borrowed shall be reported in the annual report of the commission, and shall include the nature, amount, and conditions, if any, of the donation, gift, grant or services borrowed and the identity of the donor or lender. The commission may make additional reports as it may deem desirable. Committees.

(a) The Multistate Tax Commission is hereby established. It shall be composed of one (1) "member" from each party state who shall be the head of the state agency charged with the administration of the types of taxes to which this compact applies. If there is more than one (1) such agency the state shall provide by law for the selection of the commission member from the heads of the relevant agencies. State law may provide that a member of the commission be represented by an alternate but only if there is on file with the commission written notification of the designation and identity of the alternate. The attorney general of each party state or his designee, or other counsel if the laws of the party state specifically provide, shall be entitled to attend the meetings of the commission, but shall not vote. Such attorneys general, designees, or other counsel shall receive all notices of meetings required under paragraph 1(e) of this article.

(b) Each party state shall provide by law for the selection of representatives from its subdivisions affected by this compact to consult with the commission member from that state.

(c) Each member shall be entitled to one (1) vote. The commission shall not act unless a majority of the members are present, and no action shall be binding unless approved by a majority of the total number of members.

(d) The commission shall adopt an official seal to be used as it may provide.

(e) The commission shall hold an annual meeting and such other regular meetings as its bylaws may provide and such special meetings as its executive committee may determine. The commission bylaws shall specify the dates of the annual and any other regular meetings, and shall provide for the giving of notice of annual, regular, and special meetings. Notices of special meetings shall include the reasons therefor and an agenda of the items to be considered.

(f) The commission shall elect annually, from among its members, a chairman, a vice-chairman, and a treasurer. The commission shall appoint an executive director who shall serve at its pleasure, and it shall fix his duties and compensation. The executive director shall be secretary of the commission. The commission shall make provision for the bonding of such of its officers and employees as it may deem appropriate.

(g) Irrespective of the civil service, personnel, or other merit system laws of any party state, the executive director shall appoint or discharge such personnel as may be necessary for the performance of the functions of the commission and shall fix their duties and compensation. The commission bylaws shall provide for personnel policies and programs.

(h) The commission may borrow, accept, or contract for the services of personnel from any state, the United States, or any other governmental entity.

(i) The commission may accept for any of its purposes and functions any and all donations and grants of money, equipment, supplies, materials, and services, conditional or otherwise, from any governmental entity, and may utilize and dispose of the same.

(j) The commission may establish one or more offices for the transacting of its business.

(k) The commission shall adopt bylaws for the conduct of its business. The commission shall publish its bylaws in convenient form, and shall file a copy of the bylaws and any amendments thereto with the appropriate agency or officer in each of the party states.

(l) The commission annually shall make to the governor and legislature of each party state a report covering its activities for the preceding year. Any donation or grant accepted by the commission or services borrowed shall be reported in the annual report of the commission, and shall include the nature, amount, and conditions, if any, of the donation, gift, grant or services borrowed and the identity of the donor or lender. The commission may make additional reports as it may deem desirable. Committees.

Committees.

2. (a) To assist in the conduct of its business when the full commission is not meeting, the commission shall have an executive committee of seven (7) members, including the chairman, vice-chairman, treasurer and four (4) other members elected annually by the commission. The executive committee, subject to the provisions of this compact and consistent with the policies of the commission, shall function as provided in the bylaws of the commission. (b) The commission may establish advisory and technical committees, membership on which may include private persons and public officials, in furthering any of its activities. Such committees may consider any matter of concern to the commission, including problems of special interest to any party state and problems dealing with particular types of taxes. (c) The commission may establish such additional committees as its bylaws may provide. Powers.

(a) To assist in the conduct of its business when the full commission is not meeting, the commission shall have an executive committee of seven (7) members, including the chairman, vice-chairman, treasurer and four (4) other members elected annually by the commission. The executive committee, subject to the provisions of this compact and consistent with the policies of the commission, shall function as provided in the bylaws of the commission.

(b) The commission may establish advisory and technical committees, membership on which may include private persons and public officials, in furthering any of its activities. Such committees may consider any matter of concern to the commission, including problems of special interest to any party state and problems dealing with particular types of taxes.

(c) The commission may establish such additional committees as its bylaws may provide. Powers.

Powers.

3. In addition to powers conferred elsewhere in this compact, the commission shall have power to: (a) Study state and local tax systems and particular types of state and local taxes; (b) Develop and recommend proposals for an increase in uniformity or compatibility of state and local tax laws with a view toward encouraging the simplification and improvement of state and local tax law and administration; (c) Compile and publish information as in its judgment would assist the party states in implementation of the compact and taxpayers in complying with state and local tax laws; (d) Do all things necessary and incidental to the administration of its functions pursuant to this compact. Finance.

(a) Study state and local tax systems and particular types of state and local taxes;

(b) Develop and recommend proposals for an increase in uniformity or compatibility of state and local tax laws with a view toward encouraging the simplification and improvement of state and local tax law and administration;

(c) Compile and publish information as in its judgment would assist the party states in implementation of the compact and taxpayers in complying with state and local tax laws;

(d) Do all things necessary and incidental to the administration of its functions pursuant to this compact. Finance.

Finance.

4. (a) The commission shall submit to the Governor or designated officer or officers of each party state a budget of its estimated expenditures for such period as may be required by the laws of that state for presentation to the legislature thereof. (b) Each of the commission's budgets of estimated expenditures shall contain specific recommendations of the amounts to be appropriated by each of the party states. The total amount of appropriations requested under any such budget shall be apportioned among the party states as follows: one-tenth ( 1 / 10 ) in equal shares; and the remainder in proportion to the amount of revenue collected by each party state and its subdivisions from income taxes, capital stock taxes, gross receipts taxes, and sales and use taxes. In determining such amounts, the commission shall employ such available public sources of information as, in its judgment, present the most equitable and accurate comparisons among the party states. Each of the commission's budgets of estimated expenditures and requests for appropriations shall indicate the sources used in obtaining information employed in applying the formula contained in this paragraph. (c) The commission shall not pledge the credit of any party state. The commission may meet any of its obligations in whole or in part with funds available to it under paragraph 1(i) of this article; provided that the commission takes specific action setting aside such funds prior to incurring any obligation to be met in whole or in part in such manner. Except where the commission makes use of funds available to it under paragraph 1(i), the commission shall not incur any obligation prior to the allotment of funds by the party states adequate to meet the same. (d) The commission shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the commission shall be subject to the audit and accounting procedures established under its bylaws. All receipts and disbursements of funds handled by the commission shall be audited yearly by a certified or licensed public accountant and the report of the audit shall be included in and become part of the annual report of the commission. (e) The accounts of the commission shall be open at any reasonable time for inspection by duly constituted officers of the party states and by any persons authorized by the commission. (f) Nothing contained in this article shall be construed to prevent commission compliance with laws relating to audit or inspection of accounts by or on behalf of any government contributing to the support of the commission.

(a) The commission shall submit to the Governor or designated officer or officers of each party state a budget of its estimated expenditures for such period as may be required by the laws of that state for presentation to the legislature thereof.

(b) Each of the commission's budgets of estimated expenditures shall contain specific recommendations of the amounts to be appropriated by each of the party states. The total amount of appropriations requested under any such budget shall be apportioned among the party states as follows: one-tenth ( 1 / 10 ) in equal shares; and the remainder in proportion to the amount of revenue collected by each party state and its subdivisions from income taxes, capital stock taxes, gross receipts taxes, and sales and use taxes. In determining such amounts, the commission shall employ such available public sources of information as, in its judgment, present the most equitable and accurate comparisons among the party states. Each of the commission's budgets of estimated expenditures and requests for appropriations shall indicate the sources used in obtaining information employed in applying the formula contained in this paragraph.

(c) The commission shall not pledge the credit of any party state. The commission may meet any of its obligations in whole or in part with funds available to it under paragraph 1(i) of this article; provided that the commission takes specific action setting aside such funds prior to incurring any obligation to be met in whole or in part in such manner. Except where the commission makes use of funds available to it under paragraph 1(i), the commission shall not incur any obligation prior to the allotment of funds by the party states adequate to meet the same.

(d) The commission shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the commission shall be subject to the audit and accounting procedures established under its bylaws. All receipts and disbursements of funds handled by the commission shall be audited yearly by a certified or licensed public accountant and the report of the audit shall be included in and become part of the annual report of the commission.

(e) The accounts of the commission shall be open at any reasonable time for inspection by duly constituted officers of the party states and by any persons authorized by the commission.

(f) Nothing contained in this article shall be construed to prevent commission compliance with laws relating to audit or inspection of accounts by or on behalf of any government contributing to the support of the commission.

ARTICLE VII Uniform Regulations and Forms 1. Whenever any two (2) or more party states, or subdivisions of party states, have uniform or similar provisions of law relating to an income tax, capital stock tax, gross receipts tax, sales or use tax, the commission may adopt uniform regulations for any phase of the administration of such law, including assertion of jurisdiction to tax, or prescribing uniform tax forms. The commission may also act with respect to the provisions of Article IV of this compact. 2. Prior to the adoption of any regulation, the commission shall: (a) As provided in its bylaws, hold at least one (1) public hearing on due notice to all affected party states and subdivisions thereof and to all taxpayers and other persons who have made timely request of the commission for advance notice of its regulation-making proceedings. (b) Afford all affected party states and subdivisions and interested persons an opportunity to submit relevant written data and views, which shall be considered fully by the commission. 3. The commission shall submit any regulations adopted by it to the appropriate officials of all party states and subdivisions to which they might apply. Each such state and subdivision shall consider any such regulation for adoption in accordance with its own laws and procedures.

1. Whenever any two (2) or more party states, or subdivisions of party states, have uniform or similar provisions of law relating to an income tax, capital stock tax, gross receipts tax, sales or use tax, the commission may adopt uniform regulations for any phase of the administration of such law, including assertion of jurisdiction to tax, or prescribing uniform tax forms. The commission may also act with respect to the provisions of Article IV of this compact.

2. Prior to the adoption of any regulation, the commission shall: (a) As provided in its bylaws, hold at least one (1) public hearing on due notice to all affected party states and subdivisions thereof and to all taxpayers and other persons who have made timely request of the commission for advance notice of its regulation-making proceedings. (b) Afford all affected party states and subdivisions and interested persons an opportunity to submit relevant written data and views, which shall be considered fully by the commission.

(a) As provided in its bylaws, hold at least one (1) public hearing on due notice to all affected party states and subdivisions thereof and to all taxpayers and other persons who have made timely request of the commission for advance notice of its regulation-making proceedings.

(b) Afford all affected party states and subdivisions and interested persons an opportunity to submit relevant written data and views, which shall be considered fully by the commission.

3. The commission shall submit any regulations adopted by it to the appropriate officials of all party states and subdivisions to which they might apply. Each such state and subdivision shall consider any such regulation for adoption in accordance with its own laws and procedures.

ARTICLE VIII Interstate Audits 1. This article shall be in force only in those party states that specifically provide therefor by statute. 2. Any party state or subdivision thereof desiring to make or participate in an audit of any accounts, books, papers, records, or other documents may request the commission to perform the audit on its behalf. In responding to the request, the commission shall have access to and may examine, at any reasonable time, such accounts, books, papers, records, and other documents and any relevant property or stock of merchandise. The commission may enter into agreements with party states or their subdivisions for assistance in performance of the audit. The commission shall make charges, to be paid by the state or local government or governments for which it performs the service, for any audits performed by it in order to reimburse itself for the actual costs incurred in making the audit. 3. The commission may require the attendance of any person within the state where it is conducting an audit or part thereof at a time and place fixed by it within such state for the purpose of giving testimony with respect to any account, book, paper, document, other record, property, or stock of merchandise being examined in connection with the audit. If the person is not within the jurisdiction, he may be required to attend for such purpose at any time and place fixed by the commission within the state of which he is a resident, provided that such state has adopted this article. 4. The commission may apply to any court having power to issue compulsory process for orders in aid of its powers and responsibilities pursuant to this article and any and all such courts shall have jurisdiction to issue such orders. Failure of any person to obey any such order shall be punishable as contempt of the issuing court. If the party or subject matter on account of which the commission seeks an order is within the jurisdiction of the court to which application is made, such application may be to a court in the state or subdivision on behalf of which the audit is being made or a court in the state in which the object of the order being sought is situated. The provisions of this paragraph apply only to courts in a state that has adopted this article. 5. The commission may decline to perform any audit requested if it finds that its available personnel or other resources are insufficient for the purpose or that, in the terms requested, the audit is impracticable of satisfactory performance. If the commission, on the basis of its experience, has reason to believe that an audit of a particular taxpayer, either at a particular time or on a particular schedule, would be of interest to a number of party states or their subdivisions, it may offer to make the audit or audits, the offer to be contingent on sufficient participation therein as determined by the commission. 6. Information obtained by any audit pursuant to this article shall be confidential and available only for tax purposes to party states, their subdivisions, or the United States. Availability of information shall be in accordance with the laws of the states for subdivisions on whose account the commission performs the audit, and only through the appropriate agencies or officers of such states or subdivisions. Nothing in this article shall be construed to require any taxpayer to keep records for any period not otherwise required by law. 7. Other arrangements made or authorized pursuant to law for cooperative audit by or on behalf of the party states or any of their subdivisions are not superseded or invalidated by this article. 8. In no event shall the commission make any charge against a taxpayer for an audit. 9. As used in this article, "tax," in addition to the meaning ascribed to it in Article II, means any tax or license fee imposed in whole or in part for revenue purposes.

1. This article shall be in force only in those party states that specifically provide therefor by statute.

2. Any party state or subdivision thereof desiring to make or participate in an audit of any accounts, books, papers, records, or other documents may request the commission to perform the audit on its behalf. In responding to the request, the commission shall have access to and may examine, at any reasonable time, such accounts, books, papers, records, and other documents and any relevant property or stock of merchandise. The commission may enter into agreements with party states or their subdivisions for assistance in performance of the audit. The commission shall make charges, to be paid by the state or local government or governments for which it performs the service, for any audits performed by it in order to reimburse itself for the actual costs incurred in making the audit.

3. The commission may require the attendance of any person within the state where it is conducting an audit or part thereof at a time and place fixed by it within such state for the purpose of giving testimony with respect to any account, book, paper, document, other record, property, or stock of merchandise being examined in connection with the audit. If the person is not within the jurisdiction, he may be required to attend for such purpose at any time and place fixed by the commission within the state of which he is a resident, provided that such state has adopted this article.

4. The commission may apply to any court having power to issue compulsory process for orders in aid of its powers and responsibilities pursuant to this article and any and all such courts shall have jurisdiction to issue such orders. Failure of any person to obey any such order shall be punishable as contempt of the issuing court. If the party or subject matter on account of which the commission seeks an order is within the jurisdiction of the court to which application is made, such application may be to a court in the state or subdivision on behalf of which the audit is being made or a court in the state in which the object of the order being sought is situated. The provisions of this paragraph apply only to courts in a state that has adopted this article.

5. The commission may decline to perform any audit requested if it finds that its available personnel or other resources are insufficient for the purpose or that, in the terms requested, the audit is impracticable of satisfactory performance. If the commission, on the basis of its experience, has reason to believe that an audit of a particular taxpayer, either at a particular time or on a particular schedule, would be of interest to a number of party states or their subdivisions, it may offer to make the audit or audits, the offer to be contingent on sufficient participation therein as determined by the commission.

6. Information obtained by any audit pursuant to this article shall be confidential and available only for tax purposes to party states, their subdivisions, or the United States. Availability of information shall be in accordance with the laws of the states for subdivisions on whose account the commission performs the audit, and only through the appropriate agencies or officers of such states or subdivisions. Nothing in this article shall be construed to require any taxpayer to keep records for any period not otherwise required by law.

7. Other arrangements made or authorized pursuant to law for cooperative audit by or on behalf of the party states or any of their subdivisions are not superseded or invalidated by this article.

8. In no event shall the commission make any charge against a taxpayer for an audit.

9. As used in this article, "tax," in addition to the meaning ascribed to it in Article II, means any tax or license fee imposed in whole or in part for revenue purposes.

ARTICLE IX Arbitration 1. Whenever the commission finds a need for settling disputes concerning apportionments and allocations by arbitration, it may adopt a regulation placing this article in effect, notwithstanding the provisions of Article VII. 2. The commission shall select and maintain an arbitration panel composed of officers and employees of state and local governments and private persons who shall be knowledgeable and experienced in matters of tax law and administration. 3. Whenever a taxpayer who has elected to employ Article IV, or whenever the laws of the party state or subdivision thereof are substantially identical with the relevant provisions of Article IV, the taxpayer, by written notice to the commission and to each party state or subdivision thereof that would be affected, may secure arbitration of an apportionment or allocation, if he is dissatisfied with the final administrative determination of the tax agency of the state or subdivision with respect thereto on the ground that it would subject him to double or multiple taxation by two (2) or more party states or subdivisions thereof. Each party state and subdivision thereof hereby consents to the arbitration as provided herein, and agrees to be bound thereby. 4. The arbitration board shall be composed of one (1) person selected by the taxpayer, one (1) by the agency or agencies involved, and one (1) member of the commission's arbitration panel. If the agencies involved are unable to agree on the person to be selected by them, such person shall be selected by lot from the total membership of the arbitration panel. The two (2) persons selected for the board in the manner provided by the foregoing provisions of this paragraph shall jointly select the third member of the board. If they are unable to agree on the selection, the third member shall be selected by lot from among the total membership of the arbitration panel. No member of a board selected by lot shall be qualified to serve if he is an officer or employee or is otherwise affiliated with any party to the arbitration proceeding. Residence within the jurisdiction of a party to the arbitration proceeding shall not constitute affiliation within the meaning of this paragraph. 5. The board may sit in any state or subdivision party to the proceeding, in the state of the taxpayer's incorporation, residence, or domicile, in any state where the taxpayer does business, or in any place that it finds most appropriate for gaining access to evidence relevant to the matter before it. 6. The board shall give due notice of the times and places of its hearings. The parties shall be entitled to be heard, to present evidence, and to examine and cross-examine witnesses. The board shall act by majority vote. 7. The board shall have power to administer oaths, take testimony, subpoena and require the attendance of witnesses and the production of accounts, books, papers, records, and other documents, and issue commissions to take testimony. Subpoenas may be signed by any member of the board. In case of failure to obey a subpoena, and upon application by the board, any judge of a court of competent jurisdiction of the state in which the board is sitting or in which the person to whom the subpoena is directed may be found may make an order requiring compliance with the subpoena, and the court may punish failure to obey the order as a contempt. The provisions of this paragraph apply only in states that have adopted this article. 8. Unless the parties otherwise agree the expenses and other costs of the arbitration shall be assessed and allocated among the parties by the board in such manner as it may determine. The commission shall fix a schedule of compensation for members of arbitration boards and of other allowable expenses and costs. No officer or employee of a state or local government who serves as a member of a board shall be entitled to compensation therefor unless he is required on account of his service to forego the regular compensation attaching to his public employment, but any such board member shall be entitled to expenses. 9. The board shall determine the disputed apportionment or allocation and any matters necessary thereto. The determinations of the board shall be final for purposes of making the apportionment or allocation, but for no other purpose. 10. The board shall file with the commission and with each tax agency represented in the proceeding: the determination of the board; the board's written statement of its reasons therefor; the record of the board's proceedings; and any other documents required by the arbitration rules of the commission to be filed. 11. The commission shall publish the determinations of boards together with the statements of the reasons therefor. 12. The commission shall adopt and publish rules of procedure and practice and shall file a copy of such rules and of any amendment thereto with the appropriate agency or officer in each of the party states. 13. Nothing contained herein shall prevent at any time a written compromise of any matter or matters in dispute, if otherwise lawful, by the parties to the arbitration proceeding.

1. Whenever the commission finds a need for settling disputes concerning apportionments and allocations by arbitration, it may adopt a regulation placing this article in effect, notwithstanding the provisions of Article VII.

2. The commission shall select and maintain an arbitration panel composed of officers and employees of state and local governments and private persons who shall be knowledgeable and experienced in matters of tax law and administration.

3. Whenever a taxpayer who has elected to employ Article IV, or whenever the laws of the party state or subdivision thereof are substantially identical with the relevant provisions of Article IV, the taxpayer, by written notice to the commission and to each party state or subdivision thereof that would be affected, may secure arbitration of an apportionment or allocation, if he is dissatisfied with the final administrative determination of the tax agency of the state or subdivision with respect thereto on the ground that it would subject him to double or multiple taxation by two (2) or more party states or subdivisions thereof. Each party state and subdivision thereof hereby consents to the arbitration as provided herein, and agrees to be bound thereby.

4. The arbitration board shall be composed of one (1) person selected by the taxpayer, one (1) by the agency or agencies involved, and one (1) member of the commission's arbitration panel. If the agencies involved are unable to agree on the person to be selected by them, such person shall be selected by lot from the total membership of the arbitration panel. The two (2) persons selected for the board in the manner provided by the foregoing provisions of this paragraph shall jointly select the third member of the board. If they are unable to agree on the selection, the third member shall be selected by lot from among the total membership of the arbitration panel. No member of a board selected by lot shall be qualified to serve if he is an officer or employee or is otherwise affiliated with any party to the arbitration proceeding. Residence within the jurisdiction of a party to the arbitration proceeding shall not constitute affiliation within the meaning of this paragraph.

5. The board may sit in any state or subdivision party to the proceeding, in the state of the taxpayer's incorporation, residence, or domicile, in any state where the taxpayer does business, or in any place that it finds most appropriate for gaining access to evidence relevant to the matter before it.

6. The board shall give due notice of the times and places of its hearings. The parties shall be entitled to be heard, to present evidence, and to examine and cross-examine witnesses. The board shall act by majority vote.

7. The board shall have power to administer oaths, take testimony, subpoena and require the attendance of witnesses and the production of accounts, books, papers, records, and other documents, and issue commissions to take testimony. Subpoenas may be signed by any member of the board. In case of failure to obey a subpoena, and upon application by the board, any judge of a court of competent jurisdiction of the state in which the board is sitting or in which the person to whom the subpoena is directed may be found may make an order requiring compliance with the subpoena, and the court may punish failure to obey the order as a contempt. The provisions of this paragraph apply only in states that have adopted this article.

8. Unless the parties otherwise agree the expenses and other costs of the arbitration shall be assessed and allocated among the parties by the board in such manner as it may determine. The commission shall fix a schedule of compensation for members of arbitration boards and of other allowable expenses and costs. No officer or employee of a state or local government who serves as a member of a board shall be entitled to compensation therefor unless he is required on account of his service to forego the regular compensation attaching to his public employment, but any such board member shall be entitled to expenses.

9. The board shall determine the disputed apportionment or allocation and any matters necessary thereto. The determinations of the board shall be final for purposes of making the apportionment or allocation, but for no other purpose.

10. The board shall file with the commission and with each tax agency represented in the proceeding: the determination of the board; the board's written statement of its reasons therefor; the record of the board's proceedings; and any other documents required by the arbitration rules of the commission to be filed.

11. The commission shall publish the determinations of boards together with the statements of the reasons therefor.

12. The commission shall adopt and publish rules of procedure and practice and shall file a copy of such rules and of any amendment thereto with the appropriate agency or officer in each of the party states.

13. Nothing contained herein shall prevent at any time a written compromise of any matter or matters in dispute, if otherwise lawful, by the parties to the arbitration proceeding.

ARTICLE X Entry Into Force and Withdrawal 1. This compact shall enter into force when enacted into law by any seven (7) states. Thereafter, this compact shall become effective as to any other state upon its enactment thereof. The commission shall arrange for notification of all party states whenever there is a new enactment of the compact. 2. Any party state may withdraw from this compact by enacting a statute repealing the same. No withdrawal shall affect any liability already incurred by or chargeable to a party state prior to the time of such withdrawal. 3. No proceeding commenced before an arbitration board prior to the withdrawal of a state and to which the withdrawing state or any subdivision thereof is a party shall be discontinued or terminated by the withdrawal, nor shall the board thereby lose jurisdiction over any of the parties to the proceeding necessary to make a binding determination therein.

1. This compact shall enter into force when enacted into law by any seven (7) states. Thereafter, this compact shall become effective as to any other state upon its enactment thereof. The commission shall arrange for notification of all party states whenever there is a new enactment of the compact.

2. Any party state may withdraw from this compact by enacting a statute repealing the same. No withdrawal shall affect any liability already incurred by or chargeable to a party state prior to the time of such withdrawal.

3. No proceeding commenced before an arbitration board prior to the withdrawal of a state and to which the withdrawing state or any subdivision thereof is a party shall be discontinued or terminated by the withdrawal, nor shall the board thereby lose jurisdiction over any of the parties to the proceeding necessary to make a binding determination therein.

ARTICLE XI Effect on Other Laws and Jurisdiction Nothing in this compact shall be construed to: (a) Affect the power of any state or subdivision thereof to fix rates of taxation, except that a party state shall be obligated to implement Article III 2 of this compact. (b) Apply to any tax or fixed fee imposed for the registration of a motor vehicle or any tax on motor fuel, other than a sales tax; provided that the definition of "tax" in Article VIII 9 may apply for the purposes of that article and the commission's powers of study and recommendation pursuant to Article VI 3 may apply. (c) Withdraw or limit the jurisdiction of any state or local court or administrative officer or body with respect to any person, corporation, or other entity or subject matter, except to the extent that such jurisdiction is expressly conferred by or pursuant to this compact upon another agency or body. (d) Supersede or limit the jurisdiction of any court of the United States.

Nothing in this compact shall be construed to:

(a) Affect the power of any state or subdivision thereof to fix rates of taxation, except that a party state shall be obligated to implement Article III 2 of this compact.

(b) Apply to any tax or fixed fee imposed for the registration of a motor vehicle or any tax on motor fuel, other than a sales tax; provided that the definition of "tax" in Article VIII 9 may apply for the purposes of that article and the commission's powers of study and recommendation pursuant to Article VI 3 may apply.

(c) Withdraw or limit the jurisdiction of any state or local court or administrative officer or body with respect to any person, corporation, or other entity or subject matter, except to the extent that such jurisdiction is expressly conferred by or pursuant to this compact upon another agency or body.

(d) Supersede or limit the jurisdiction of any court of the United States.

ARTICLE XII Construction and Severability This compact shall be liberally construed so as to effectuate the purposes thereof. The provisions of this compact shall be severable and if any phrase, clause, sentence, or provision of this compact is declared to be contrary to the constitution of any state or of the United States or the applicability thereof to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this compact and the applicability thereof to any government, agency, person, or circumstance shall not be affected thereby. If this compact shall be held contrary to the constitution of any state participating therein, the compact shall remain in full force and effect as to the remaining party states and in full force and effect as to the state affected as to all severable matters.

This compact shall be liberally construed so as to effectuate the purposes thereof. The provisions of this compact shall be severable and if any phrase, clause, sentence, or provision of this compact is declared to be contrary to the constitution of any state or of the United States or the applicability thereof to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this compact and the applicability thereof to any government, agency, person, or circumstance shall not be affected thereby. If this compact shall be held contrary to the constitution of any state participating therein, the compact shall remain in full force and effect as to the remaining party states and in full force and effect as to the state affected as to all severable matters.

Amended by Act 2023, No. 485,§ 2, eff. 1/1/2024, app. for tax years beginning on or after 1/1/2024.

Amended by Act 2023, No. 658,§ 2, eff. for tax years beginning on or after 1/1/2023.

Amended by Act 2019, No. 822,§ 3, eff. 1/1/2021.

Amended by Act 2019, No. 822,§ 2, eff. 1/1/2021.

Acts 1967, No. 410, § 1; A.S.A. 1947, § 84-4101; Acts 1989, No. 395, § 1; 1989, No. 494, §§ 2, 4; 1995, No. 682, § 1.
Ark. Code Ann. § 26-52-443 — AR Code / Title 26 / Chapter 52 / Subchapter 4 / Section 26-52-443
Exemption for American Scent Dog Association, Inc
Status: in_force

The gross receipts or gross proceeds from the sale of tangible personal property, specified digital products, a digital code, or a service to the American Scent Dog Association, Inc., are exempt from the gross receipts tax levied by this chapter and the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq. Amended by Act 2017, No. 141,§ 33, eff. for tax years beginning on and after 1/1/2018. Acts 2009, No. 1176, § 1.

The gross receipts or gross proceeds from the sale of tangible personal property, specified digital products, a digital code, or a service to the American Scent Dog Association, Inc., are exempt from the gross receipts tax levied by this chapter and the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq.

Amended by Act 2017, No. 141,§ 33, eff. for tax years beginning on and after 1/1/2018.

Acts 2009, No. 1176, § 1.
Ark. Code Ann. § 26-37-202 — AR Code / Title 26 / Chapter 37 / Subchapter 2 / Section 26-37-202
Procedure to sell - Definitions
Status: in_force

(a) (1) An individual or entity whose home of record is outside the United States is prohibited from purchasing a tax-delinquent parcel certified to the Commissioner of State Lands. (2) Effective July 1, 2021, in the event it is determined that a tax-delinquent parcel previously certified to the Commissioner of State Lands has been purchased by an individual or entity whose home of record is outside the United States: (A) The deed shall be cancelled by the Commissioner of State Lands within three (3) business days of the determination; (B) Any and all moneys originally paid to the Commissioner of State Lands for the parcel are immediately forfeited to the Commissioner of State Lands; and (C) The parcel is immediately considered certified to the Commissioner of State Lands as tax-delinquent. (b) (1) (A) If at a scheduled tax-delinquent property auction a person or entity does not bid at least the amount of delinquent taxes, penalties, interest, and the costs of the sale, the Commissioner of State Lands may sell a tax-delinquent parcel at an unsold-property auction. (B) The Commissioner of State Lands may conduct an unsold-property auction under subdivision (b)(1)(A) of this section online. (2) (A) If a tax-delinquent parcel is offered at an unsold-property auction within the first two (2) years following the tax-delinquent property auction, the tax-delinquent parcel shall be offered for at least the amount of the delinquent taxes, penalties, interest, and the costs of the sale. (B) (i) If a tax-delinquent parcel is offered two (2) years or more following the tax-delinquent property auction, the sale of the tax-delinquent parcel may be negotiated at a price the Commissioner of State Lands determines to be in the best interest of the state and the local taxing units. (ii) The Commissioner of State Lands may conduct a negotiated-price sale under subdivision (b)(2)(B)(i) of this section online. (3) The Commissioner of State Lands shall submit quarterly reports to the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, listing all tax-delinquent parcels sold at an unsold-property auction or a negotiated-price sale under this section. (c) (1) Except as provided in subdivision (c)(2) of this section, when the Commissioner of State Lands conducts an in-person tax-delinquent property auction, the in-person tax-delinquent property auction shall take place in the county where the parcel is located. (2) If the Commissioner of State Lands determines that sufficient parcels of land located in one (1) county do not exist to justify an in-person sale in one (1) county, the Commissioner of State Lands may hold an in-person tax-delinquent property auction in one (1) location and sell parcels located in more than one (1) county if the counties are adjoining counties. (3) Unsold-property auctions and negotiated-price auctions are exempt from subdivisions (c)(1) and (2) of this section. (d) The auctions under this section shall be conducted on the dates specified in the notices required by this subchapter. (e) (1) (A) If a tax-delinquent parcel is to be offered at an in-person tax-delinquent property auction, then at least thirty (30) calendar days before the date of the sale the Commissioner of State Lands shall notify the owner and all interested parties by regular mail of the right to redeem the parcel before 4:00 p.m. central standard time (CST) on the last business day before the date of the sale by paying all taxes, penalties, interest, and costs due, including the cost of the notice. (B) If a tax-delinquent parcel is offered for sale online through an unsold-property auction or a negotiated-price sale, when the first bid is received, the Commissioner of State Lands shall notify the owner and all interested parties by certified mail of the date of the sale and the right to redeem the parcel before 4:00 p.m. central standard time (CST) on the last business day before the date of the sale by paying all taxes, penalties, interest, and costs due, including the cost of the notice. (2) The notice required under subdivision (e)(1) of this section shall be sent to the owner at his or her last known address, as certified by the county, and all interested parties. (3) (A) If a parcel subject to subdivision (e)(1)(A) of this section is not redeemed by the deadline stated in subdivision (e)(1)(A) of this section, the parcel shall be offered for sale at an in-person tax-delinquent auction, and if sold, a limited warranty deed shall be issued by the Commissioner of State Lands to the purchaser. (B) If a parcel subject to subdivision (e)(1)(B) of this section is not redeemed by the deadline stated in subdivision (e)(1)(B) of this section, upon sale of the parcel, the Commissioner of State Lands shall issue a limited warranty deed to the purchaser. (f) Payment to redeem a tax-delinquent parcel under this section shall be made by certified funds, including without limitation, cash, a credit card, debit card, electronic check, escrow check, money order, cashier's check, or certified bank check. (g) As used in this section: (1) "Business day" means a Monday, Tuesday, Wednesday, Thursday, or Friday that is not otherwise observed as an official state holiday; and (2) "Owner" and "interested party" have the same meaning as in § 26-37-301 . (h) The Commissioner of State Lands shall promulgate rules to carry out the provisions of this section. Amended by Act 2023, No. 241,§ 1, eff. 3/9/2023. Amended by Act 2021, No. 447,§ 1, eff. 3/24/2021. Amended by Act 2017, No. 1053,§ 2, eff. 8/1/2017. Amended by Act 2017, No. 1053,§ 1, eff. 8/1/2017. Amended by Act 2013, No. 1231,§ 3, eff. 8/16/2013. Acts 1983, No. 626, § 3; A.S.A. 1947, § 84-1128; Acts 1987, No. 814, § 5; 2007, No. 706, § 2.

(a) (1) An individual or entity whose home of record is outside the United States is prohibited from purchasing a tax-delinquent parcel certified to the Commissioner of State Lands. (2) Effective July 1, 2021, in the event it is determined that a tax-delinquent parcel previously certified to the Commissioner of State Lands has been purchased by an individual or entity whose home of record is outside the United States: (A) The deed shall be cancelled by the Commissioner of State Lands within three (3) business days of the determination; (B) Any and all moneys originally paid to the Commissioner of State Lands for the parcel are immediately forfeited to the Commissioner of State Lands; and (C) The parcel is immediately considered certified to the Commissioner of State Lands as tax-delinquent.

(1) An individual or entity whose home of record is outside the United States is prohibited from purchasing a tax-delinquent parcel certified to the Commissioner of State Lands.

(2) Effective July 1, 2021, in the event it is determined that a tax-delinquent parcel previously certified to the Commissioner of State Lands has been purchased by an individual or entity whose home of record is outside the United States: (A) The deed shall be cancelled by the Commissioner of State Lands within three (3) business days of the determination; (B) Any and all moneys originally paid to the Commissioner of State Lands for the parcel are immediately forfeited to the Commissioner of State Lands; and (C) The parcel is immediately considered certified to the Commissioner of State Lands as tax-delinquent.

(A) The deed shall be cancelled by the Commissioner of State Lands within three (3) business days of the determination;

(B) Any and all moneys originally paid to the Commissioner of State Lands for the parcel are immediately forfeited to the Commissioner of State Lands; and

(C) The parcel is immediately considered certified to the Commissioner of State Lands as tax-delinquent.

(b) (1) (A) If at a scheduled tax-delinquent property auction a person or entity does not bid at least the amount of delinquent taxes, penalties, interest, and the costs of the sale, the Commissioner of State Lands may sell a tax-delinquent parcel at an unsold-property auction. (B) The Commissioner of State Lands may conduct an unsold-property auction under subdivision (b)(1)(A) of this section online. (2) (A) If a tax-delinquent parcel is offered at an unsold-property auction within the first two (2) years following the tax-delinquent property auction, the tax-delinquent parcel shall be offered for at least the amount of the delinquent taxes, penalties, interest, and the costs of the sale. (B) (i) If a tax-delinquent parcel is offered two (2) years or more following the tax-delinquent property auction, the sale of the tax-delinquent parcel may be negotiated at a price the Commissioner of State Lands determines to be in the best interest of the state and the local taxing units. (ii) The Commissioner of State Lands may conduct a negotiated-price sale under subdivision (b)(2)(B)(i) of this section online. (3) The Commissioner of State Lands shall submit quarterly reports to the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, listing all tax-delinquent parcels sold at an unsold-property auction or a negotiated-price sale under this section.

(1) (A) If at a scheduled tax-delinquent property auction a person or entity does not bid at least the amount of delinquent taxes, penalties, interest, and the costs of the sale, the Commissioner of State Lands may sell a tax-delinquent parcel at an unsold-property auction. (B) The Commissioner of State Lands may conduct an unsold-property auction under subdivision (b)(1)(A) of this section online.

(A) If at a scheduled tax-delinquent property auction a person or entity does not bid at least the amount of delinquent taxes, penalties, interest, and the costs of the sale, the Commissioner of State Lands may sell a tax-delinquent parcel at an unsold-property auction.

(B) The Commissioner of State Lands may conduct an unsold-property auction under subdivision (b)(1)(A) of this section online.

(2) (A) If a tax-delinquent parcel is offered at an unsold-property auction within the first two (2) years following the tax-delinquent property auction, the tax-delinquent parcel shall be offered for at least the amount of the delinquent taxes, penalties, interest, and the costs of the sale. (B) (i) If a tax-delinquent parcel is offered two (2) years or more following the tax-delinquent property auction, the sale of the tax-delinquent parcel may be negotiated at a price the Commissioner of State Lands determines to be in the best interest of the state and the local taxing units. (ii) The Commissioner of State Lands may conduct a negotiated-price sale under subdivision (b)(2)(B)(i) of this section online.

(A) If a tax-delinquent parcel is offered at an unsold-property auction within the first two (2) years following the tax-delinquent property auction, the tax-delinquent parcel shall be offered for at least the amount of the delinquent taxes, penalties, interest, and the costs of the sale.

(B) (i) If a tax-delinquent parcel is offered two (2) years or more following the tax-delinquent property auction, the sale of the tax-delinquent parcel may be negotiated at a price the Commissioner of State Lands determines to be in the best interest of the state and the local taxing units. (ii) The Commissioner of State Lands may conduct a negotiated-price sale under subdivision (b)(2)(B)(i) of this section online.

(i) If a tax-delinquent parcel is offered two (2) years or more following the tax-delinquent property auction, the sale of the tax-delinquent parcel may be negotiated at a price the Commissioner of State Lands determines to be in the best interest of the state and the local taxing units.

(ii) The Commissioner of State Lands may conduct a negotiated-price sale under subdivision (b)(2)(B)(i) of this section online.

(3) The Commissioner of State Lands shall submit quarterly reports to the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, listing all tax-delinquent parcels sold at an unsold-property auction or a negotiated-price sale under this section.

(c) (1) Except as provided in subdivision (c)(2) of this section, when the Commissioner of State Lands conducts an in-person tax-delinquent property auction, the in-person tax-delinquent property auction shall take place in the county where the parcel is located. (2) If the Commissioner of State Lands determines that sufficient parcels of land located in one (1) county do not exist to justify an in-person sale in one (1) county, the Commissioner of State Lands may hold an in-person tax-delinquent property auction in one (1) location and sell parcels located in more than one (1) county if the counties are adjoining counties. (3) Unsold-property auctions and negotiated-price auctions are exempt from subdivisions (c)(1) and (2) of this section.

(1) Except as provided in subdivision (c)(2) of this section, when the Commissioner of State Lands conducts an in-person tax-delinquent property auction, the in-person tax-delinquent property auction shall take place in the county where the parcel is located.

(2) If the Commissioner of State Lands determines that sufficient parcels of land located in one (1) county do not exist to justify an in-person sale in one (1) county, the Commissioner of State Lands may hold an in-person tax-delinquent property auction in one (1) location and sell parcels located in more than one (1) county if the counties are adjoining counties.

(3) Unsold-property auctions and negotiated-price auctions are exempt from subdivisions (c)(1) and (2) of this section.

(d) The auctions under this section shall be conducted on the dates specified in the notices required by this subchapter.

(e) (1) (A) If a tax-delinquent parcel is to be offered at an in-person tax-delinquent property auction, then at least thirty (30) calendar days before the date of the sale the Commissioner of State Lands shall notify the owner and all interested parties by regular mail of the right to redeem the parcel before 4:00 p.m. central standard time (CST) on the last business day before the date of the sale by paying all taxes, penalties, interest, and costs due, including the cost of the notice. (B) If a tax-delinquent parcel is offered for sale online through an unsold-property auction or a negotiated-price sale, when the first bid is received, the Commissioner of State Lands shall notify the owner and all interested parties by certified mail of the date of the sale and the right to redeem the parcel before 4:00 p.m. central standard time (CST) on the last business day before the date of the sale by paying all taxes, penalties, interest, and costs due, including the cost of the notice. (2) The notice required under subdivision (e)(1) of this section shall be sent to the owner at his or her last known address, as certified by the county, and all interested parties. (3) (A) If a parcel subject to subdivision (e)(1)(A) of this section is not redeemed by the deadline stated in subdivision (e)(1)(A) of this section, the parcel shall be offered for sale at an in-person tax-delinquent auction, and if sold, a limited warranty deed shall be issued by the Commissioner of State Lands to the purchaser. (B) If a parcel subject to subdivision (e)(1)(B) of this section is not redeemed by the deadline stated in subdivision (e)(1)(B) of this section, upon sale of the parcel, the Commissioner of State Lands shall issue a limited warranty deed to the purchaser.

(1) (A) If a tax-delinquent parcel is to be offered at an in-person tax-delinquent property auction, then at least thirty (30) calendar days before the date of the sale the Commissioner of State Lands shall notify the owner and all interested parties by regular mail of the right to redeem the parcel before 4:00 p.m. central standard time (CST) on the last business day before the date of the sale by paying all taxes, penalties, interest, and costs due, including the cost of the notice. (B) If a tax-delinquent parcel is offered for sale online through an unsold-property auction or a negotiated-price sale, when the first bid is received, the Commissioner of State Lands shall notify the owner and all interested parties by certified mail of the date of the sale and the right to redeem the parcel before 4:00 p.m. central standard time (CST) on the last business day before the date of the sale by paying all taxes, penalties, interest, and costs due, including the cost of the notice.

(A) If a tax-delinquent parcel is to be offered at an in-person tax-delinquent property auction, then at least thirty (30) calendar days before the date of the sale the Commissioner of State Lands shall notify the owner and all interested parties by regular mail of the right to redeem the parcel before 4:00 p.m. central standard time (CST) on the last business day before the date of the sale by paying all taxes, penalties, interest, and costs due, including the cost of the notice.

(B) If a tax-delinquent parcel is offered for sale online through an unsold-property auction or a negotiated-price sale, when the first bid is received, the Commissioner of State Lands shall notify the owner and all interested parties by certified mail of the date of the sale and the right to redeem the parcel before 4:00 p.m. central standard time (CST) on the last business day before the date of the sale by paying all taxes, penalties, interest, and costs due, including the cost of the notice.

(2) The notice required under subdivision (e)(1) of this section shall be sent to the owner at his or her last known address, as certified by the county, and all interested parties.

(3) (A) If a parcel subject to subdivision (e)(1)(A) of this section is not redeemed by the deadline stated in subdivision (e)(1)(A) of this section, the parcel shall be offered for sale at an in-person tax-delinquent auction, and if sold, a limited warranty deed shall be issued by the Commissioner of State Lands to the purchaser. (B) If a parcel subject to subdivision (e)(1)(B) of this section is not redeemed by the deadline stated in subdivision (e)(1)(B) of this section, upon sale of the parcel, the Commissioner of State Lands shall issue a limited warranty deed to the purchaser.

(A) If a parcel subject to subdivision (e)(1)(A) of this section is not redeemed by the deadline stated in subdivision (e)(1)(A) of this section, the parcel shall be offered for sale at an in-person tax-delinquent auction, and if sold, a limited warranty deed shall be issued by the Commissioner of State Lands to the purchaser.

(B) If a parcel subject to subdivision (e)(1)(B) of this section is not redeemed by the deadline stated in subdivision (e)(1)(B) of this section, upon sale of the parcel, the Commissioner of State Lands shall issue a limited warranty deed to the purchaser.

(f) Payment to redeem a tax-delinquent parcel under this section shall be made by certified funds, including without limitation, cash, a credit card, debit card, electronic check, escrow check, money order, cashier's check, or certified bank check.

(g) As used in this section: (1) "Business day" means a Monday, Tuesday, Wednesday, Thursday, or Friday that is not otherwise observed as an official state holiday; and (2) "Owner" and "interested party" have the same meaning as in § 26-37-301 .

(1) "Business day" means a Monday, Tuesday, Wednesday, Thursday, or Friday that is not otherwise observed as an official state holiday; and

(2) "Owner" and "interested party" have the same meaning as in § 26-37-301 .

(h) The Commissioner of State Lands shall promulgate rules to carry out the provisions of this section.

Amended by Act 2023, No. 241,§ 1, eff. 3/9/2023.

Amended by Act 2021, No. 447,§ 1, eff. 3/24/2021.

Amended by Act 2017, No. 1053,§ 2, eff. 8/1/2017.

Amended by Act 2017, No. 1053,§ 1, eff. 8/1/2017.

Amended by Act 2013, No. 1231,§ 3, eff. 8/16/2013.

Acts 1983, No. 626, § 3; A.S.A. 1947, § 84-1128; Acts 1987, No. 814, § 5; 2007, No. 706, § 2.
Ark. Code Ann. § 26-51-419 — AR Code / Title 26 / Chapter 51 / Subchapter 4 / Section 26-51-419
Deductions - Charitable contributions
Status: in_force

(a) (1) Title 26 U.S.C. § 170 , as in effect on January 1, 2019, regarding deductions for charitable contributions, is adopted for the purpose of computing Arkansas income tax liability. (2) However, with respect to contributions of qualified appreciated stock within the meaning of 26 U.S.C. § 170(e)(5) made after May 31, 1997, the provisions of this section shall apply after taking into account the extension of the provisions of 26 U.S.C. § 170(e)(5) by § 602 of the Taxpayer Relief Act of 1997, Pub. L. No. 105-34, and § 1004(a) of the Tax and Trade Relief Extension Act of 1998, Pub. L. No. 105-277. (b) The provisions of subsection (a) of this section shall apply to a corporation that files an Arkansas consolidated corporation income tax return pursuant to § 26-51-805 , provided that each member of the affiliated group shall follow the provisions of § 26-51-805(f) and calculate its contribution limits separately. (c) For purposes of subsection (a) of this section, a cash contribution made in January 2005 for the relief of victims in areas affected by the December 26, 2004 Indian Ocean tsunami, for which a charitable contribution deduction is allowed under 26 U.S.C. § 170 , may be treated as if the contribution were made on December 31, 2004, and not in January 2005. Amended by Act 2019, No. 870,§ 5, eff. for tax years beginning on or after 1/1/2019. Amended by Act 2017, No. 155,§ 20, eff. for tax years beginning on and after 1/1/2015. Amended by Act 2015, No. 580,§ 18, eff. for tax years beginning on or after January 1, 2014. Amended by Act 2013, No. 1254,§ 8, eff. 8/16/2013, op. retroactively to tax years beginning on or after 1/1/2012. Acts 1967, No. 25, § 2; 1983, No. 379, § 12; A.S.A. 1947, § 84-2016.3; Acts 1987, No. 382, § 22; 1989, No. 826, § 3; 1995, No. 1160, § 5; 1997, No. 951, § 13; 1999, No. 1126, § 29; 2001, No. 773, § 6; 2001, No. 1227, § 1; 2005, No. 53, § 1; 2005, No. 675, § 8; 2007, No. 218, § 23; 2009, No. 372, § 14; 2011, No. 787, § 19.

(a) (1) Title 26 U.S.C. § 170 , as in effect on January 1, 2019, regarding deductions for charitable contributions, is adopted for the purpose of computing Arkansas income tax liability. (2) However, with respect to contributions of qualified appreciated stock within the meaning of 26 U.S.C. § 170(e)(5) made after May 31, 1997, the provisions of this section shall apply after taking into account the extension of the provisions of 26 U.S.C. § 170(e)(5) by § 602 of the Taxpayer Relief Act of 1997, Pub. L. No. 105-34, and § 1004(a) of the Tax and Trade Relief Extension Act of 1998, Pub. L. No. 105-277.

(1) Title 26 U.S.C. § 170 , as in effect on January 1, 2019, regarding deductions for charitable contributions, is adopted for the purpose of computing Arkansas income tax liability.

(2) However, with respect to contributions of qualified appreciated stock within the meaning of 26 U.S.C. § 170(e)(5) made after May 31, 1997, the provisions of this section shall apply after taking into account the extension of the provisions of 26 U.S.C. § 170(e)(5) by § 602 of the Taxpayer Relief Act of 1997, Pub. L. No. 105-34, and § 1004(a) of the Tax and Trade Relief Extension Act of 1998, Pub. L. No. 105-277.

(b) The provisions of subsection (a) of this section shall apply to a corporation that files an Arkansas consolidated corporation income tax return pursuant to § 26-51-805 , provided that each member of the affiliated group shall follow the provisions of § 26-51-805(f) and calculate its contribution limits separately.

(c) For purposes of subsection (a) of this section, a cash contribution made in January 2005 for the relief of victims in areas affected by the December 26, 2004 Indian Ocean tsunami, for which a charitable contribution deduction is allowed under 26 U.S.C. § 170 , may be treated as if the contribution were made on December 31, 2004, and not in January 2005.

Amended by Act 2019, No. 870,§ 5, eff. for tax years beginning on or after 1/1/2019.

Amended by Act 2017, No. 155,§ 20, eff. for tax years beginning on and after 1/1/2015.

Amended by Act 2015, No. 580,§ 18, eff. for tax years beginning on or after January 1, 2014.

Amended by Act 2013, No. 1254,§ 8, eff. 8/16/2013, op. retroactively to tax years beginning on or after 1/1/2012.

Acts 1967, No. 25, § 2; 1983, No. 379, § 12; A.S.A. 1947, § 84-2016.3; Acts 1987, No. 382, § 22; 1989, No. 826, § 3; 1995, No. 1160, § 5; 1997, No. 951, § 13; 1999, No. 1126, § 29; 2001, No. 773, § 6; 2001, No. 1227, § 1; 2005, No. 53, § 1; 2005, No. 675, § 8; 2007, No. 218, § 23; 2009, No. 372, § 14; 2011, No. 787, § 19.
Ark. Code Ann. § 26-74-313 — AR Code / Title 26 / Chapter 74 / Subchapter 3 / Section 26-74-313
Disposition of funds
Status: in_force

(a) The Secretary of the Department of Finance and Administration shall maintain a record of the total amount of tax collected pursuant to this subchapter and other subchapters authorizing county sales and use taxes in each county. The secretary shall determine the population of the unincorporated area of each of the counties and shall furnish the information to the Treasurer of State. (b) Except as set forth in subsections (c), (e), and (f) of this section, any tax collected by the secretary under this subchapter on behalf of any county shall be deposited with the Treasurer of State in trust and shall be kept in a separate suspense account. (c) Any moneys collected by the secretary, as indicated by a certified copy of an ordinance of the quorum court of the county, previously filed with the secretary and the Treasurer of State, which are pledged to secure the payment of lease rentals or bonds authorized by this subchapter shall not be deposited into the State Treasury but shall be deposited by the Treasurer of State into banks designated by the county, as cash funds, and transmitted to the county subject to the charges payable to the State of Arkansas set forth in subsection (d) of this section. Charges deducted shall be transmitted to the Treasurer of State. (d) (1) The Treasurer of State shall transmit to the treasurer or financial officer of each city and county its per capita share, after deducting the amount required for claims, overpayments, and bad checks, as certified by the secretary. (2) (A) Except as is otherwise provided in subdivision (d)(8) of this section, the last official federal decennial census or later special census that included the county as a whole shall be used in computing the per capita share that each city and county shall receive from the proceeds of the tax. Every county that is petitioned by, and city or town located in that county for, a countywide special census to be conducted shall request a countywide special census on the condition that the city or town requesting the census post adequate bond with the county clerk to cover the cost of the census. Further, the cost of conducting the census shall be borne by the several taxing units within the county in the same proportion that they will receive an increase in the distribution of a countywide sales tax as a result of the special census. (B) However, in the case of those counties in which an official census has been conducted in a municipality therein since the last federal decennial census and before April 7, 1987, the proceeds from the countywide sales tax shall continue to be distributed in the manner and under the same formula as was used for the distribution of funds prior to April 7, 1987, until such time as a countywide census is conducted in that county. (3) Transmittals shall be made at least quarterly in each fiscal year. Funds so transmitted may be used by the cities and counties for any purpose for which the city's general funds or county's general funds may be used. Before transmitting these funds, the Treasurer of State shall deduct three percent (3%) of the sum collected as a charge by the state for its services specified in this subchapter, and the amount so deducted shall be deposited by the Treasurer of State to the credit of the Constitutional Officers Fund and the State Central Services Fund or to any successor State Treasury fund or funds established by law to replace the Constitutional Officers Fund and the State Central Services Fund. (4) The secretary is authorized to retain in the suspense account a balance not to exceed five percent (5%) of the amount remitted to the local governments. The secretary is authorized to make refunds from the suspense account of any overpayments made and to redeem dishonored checks and drafts deposited to the credit of the suspense account. (5) When any tax adopted pursuant to this subchapter is thereafter abolished, the secretary shall retain in the suspense account for a period of one (1) year five percent (5%) of the final remittance to the local governments at the time of termination of collection of the tax to: (A) Cover possible refunds for overpayment of the tax; and (B) Redeem dishonored checks and drafts deposited to the credit of the suspense account. (6) After one (1) year has elapsed after the effective date of the abolishment of the tax, the secretary shall remit the balance of the suspense account to the governing bodies of the cities and counties and close the suspense account. (7) The restriction of the use of the last federal decennial census referred to in this subsection shall not apply in the case of annexation, nor shall it affect the taking of a special census for any purpose other than the distribution of a countywide sales tax. (8) (A) It is the intention of this subsection that the proceeds from the countywide gross receipts tax shall be allocated and distributed to each county and the municipalities therein on the basis of the last federal decennial census or the last countywide special census, whichever is the most recent. (B) If a municipality incorporates during a year in which a federal decennial census is conducted, then for purposes of this section and until data from a federal decennial or special census is made available to the municipality, the population of the municipality shall be based on the most recent federal decennial census as calculated by the Arkansas Geographic Information Systems Office. (e) (1) Except for revenue collected under subdivision (e)(2) of this section, money collected that is derived from a tax on aviation fuel levied by a county where a regional airport as described by the Regional Airport Act, § 14-362-101 et seq., is located shall not be deposited into the State Treasury but shall be deposited as cash funds by the Treasurer of State into a bank or banks designated by the regional airport located within the levying city and county and transmitted to the regional airport, subject to the charges by the state for its services as specified in this section. (2) Revenue derived from a tax on aviation fuel in effect on December 30, 1987, is not subject to this subsection. (f) Money collected that is derived from a tax on aviation fuel levied by a county that is not dedicated to a specific purpose and may legally be used for any lawful purpose shall not be deposited into the State Treasury but shall be deposited as cash funds by the Treasurer of State into a bank or banks designated by the county and transmitted directly to the publicly owned airport where the aviation fuel was sold, subject to the charges by the state for its services as specified in this section. Amended by Act 2021, No. 438,§ 2, eff. 3/24/2021. Amended by Act 2019, No. 910,§ 4388, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4387, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4386, eff. 7/1/2019. Acts 1981, No. 991, § 10; 1983, No. 725, § 3; A.S.A. 1947, § 17-2019; Acts 1987, No. 688, § 1; 1987 (1st Ex. Sess.), No. 2, § 1; 1987 (1st Ex. Sess.), No. 56, § 1; 1991, No. 765, § 13; 1997, No. 1176, § 7; 2007, No. 166, § 3; 2009, No. 840, §§ 3, 4.

(a) The Secretary of the Department of Finance and Administration shall maintain a record of the total amount of tax collected pursuant to this subchapter and other subchapters authorizing county sales and use taxes in each county. The secretary shall determine the population of the unincorporated area of each of the counties and shall furnish the information to the Treasurer of State.

(b) Except as set forth in subsections (c), (e), and (f) of this section, any tax collected by the secretary under this subchapter on behalf of any county shall be deposited with the Treasurer of State in trust and shall be kept in a separate suspense account.

(c) Any moneys collected by the secretary, as indicated by a certified copy of an ordinance of the quorum court of the county, previously filed with the secretary and the Treasurer of State, which are pledged to secure the payment of lease rentals or bonds authorized by this subchapter shall not be deposited into the State Treasury but shall be deposited by the Treasurer of State into banks designated by the county, as cash funds, and transmitted to the county subject to the charges payable to the State of Arkansas set forth in subsection (d) of this section. Charges deducted shall be transmitted to the Treasurer of State.

(d) (1) The Treasurer of State shall transmit to the treasurer or financial officer of each city and county its per capita share, after deducting the amount required for claims, overpayments, and bad checks, as certified by the secretary. (2) (A) Except as is otherwise provided in subdivision (d)(8) of this section, the last official federal decennial census or later special census that included the county as a whole shall be used in computing the per capita share that each city and county shall receive from the proceeds of the tax. Every county that is petitioned by, and city or town located in that county for, a countywide special census to be conducted shall request a countywide special census on the condition that the city or town requesting the census post adequate bond with the county clerk to cover the cost of the census. Further, the cost of conducting the census shall be borne by the several taxing units within the county in the same proportion that they will receive an increase in the distribution of a countywide sales tax as a result of the special census. (B) However, in the case of those counties in which an official census has been conducted in a municipality therein since the last federal decennial census and before April 7, 1987, the proceeds from the countywide sales tax shall continue to be distributed in the manner and under the same formula as was used for the distribution of funds prior to April 7, 1987, until such time as a countywide census is conducted in that county. (3) Transmittals shall be made at least quarterly in each fiscal year. Funds so transmitted may be used by the cities and counties for any purpose for which the city's general funds or county's general funds may be used. Before transmitting these funds, the Treasurer of State shall deduct three percent (3%) of the sum collected as a charge by the state for its services specified in this subchapter, and the amount so deducted shall be deposited by the Treasurer of State to the credit of the Constitutional Officers Fund and the State Central Services Fund or to any successor State Treasury fund or funds established by law to replace the Constitutional Officers Fund and the State Central Services Fund. (4) The secretary is authorized to retain in the suspense account a balance not to exceed five percent (5%) of the amount remitted to the local governments. The secretary is authorized to make refunds from the suspense account of any overpayments made and to redeem dishonored checks and drafts deposited to the credit of the suspense account. (5) When any tax adopted pursuant to this subchapter is thereafter abolished, the secretary shall retain in the suspense account for a period of one (1) year five percent (5%) of the final remittance to the local governments at the time of termination of collection of the tax to: (A) Cover possible refunds for overpayment of the tax; and (B) Redeem dishonored checks and drafts deposited to the credit of the suspense account. (6) After one (1) year has elapsed after the effective date of the abolishment of the tax, the secretary shall remit the balance of the suspense account to the governing bodies of the cities and counties and close the suspense account. (7) The restriction of the use of the last federal decennial census referred to in this subsection shall not apply in the case of annexation, nor shall it affect the taking of a special census for any purpose other than the distribution of a countywide sales tax. (8) (A) It is the intention of this subsection that the proceeds from the countywide gross receipts tax shall be allocated and distributed to each county and the municipalities therein on the basis of the last federal decennial census or the last countywide special census, whichever is the most recent. (B) If a municipality incorporates during a year in which a federal decennial census is conducted, then for purposes of this section and until data from a federal decennial or special census is made available to the municipality, the population of the municipality shall be based on the most recent federal decennial census as calculated by the Arkansas Geographic Information Systems Office.

(1) The Treasurer of State shall transmit to the treasurer or financial officer of each city and county its per capita share, after deducting the amount required for claims, overpayments, and bad checks, as certified by the secretary.

(2) (A) Except as is otherwise provided in subdivision (d)(8) of this section, the last official federal decennial census or later special census that included the county as a whole shall be used in computing the per capita share that each city and county shall receive from the proceeds of the tax. Every county that is petitioned by, and city or town located in that county for, a countywide special census to be conducted shall request a countywide special census on the condition that the city or town requesting the census post adequate bond with the county clerk to cover the cost of the census. Further, the cost of conducting the census shall be borne by the several taxing units within the county in the same proportion that they will receive an increase in the distribution of a countywide sales tax as a result of the special census. (B) However, in the case of those counties in which an official census has been conducted in a municipality therein since the last federal decennial census and before April 7, 1987, the proceeds from the countywide sales tax shall continue to be distributed in the manner and under the same formula as was used for the distribution of funds prior to April 7, 1987, until such time as a countywide census is conducted in that county.

(A) Except as is otherwise provided in subdivision (d)(8) of this section, the last official federal decennial census or later special census that included the county as a whole shall be used in computing the per capita share that each city and county shall receive from the proceeds of the tax. Every county that is petitioned by, and city or town located in that county for, a countywide special census to be conducted shall request a countywide special census on the condition that the city or town requesting the census post adequate bond with the county clerk to cover the cost of the census. Further, the cost of conducting the census shall be borne by the several taxing units within the county in the same proportion that they will receive an increase in the distribution of a countywide sales tax as a result of the special census.

(B) However, in the case of those counties in which an official census has been conducted in a municipality therein since the last federal decennial census and before April 7, 1987, the proceeds from the countywide sales tax shall continue to be distributed in the manner and under the same formula as was used for the distribution of funds prior to April 7, 1987, until such time as a countywide census is conducted in that county.

(3) Transmittals shall be made at least quarterly in each fiscal year. Funds so transmitted may be used by the cities and counties for any purpose for which the city's general funds or county's general funds may be used. Before transmitting these funds, the Treasurer of State shall deduct three percent (3%) of the sum collected as a charge by the state for its services specified in this subchapter, and the amount so deducted shall be deposited by the Treasurer of State to the credit of the Constitutional Officers Fund and the State Central Services Fund or to any successor State Treasury fund or funds established by law to replace the Constitutional Officers Fund and the State Central Services Fund.

(4) The secretary is authorized to retain in the suspense account a balance not to exceed five percent (5%) of the amount remitted to the local governments. The secretary is authorized to make refunds from the suspense account of any overpayments made and to redeem dishonored checks and drafts deposited to the credit of the suspense account.

(5) When any tax adopted pursuant to this subchapter is thereafter abolished, the secretary shall retain in the suspense account for a period of one (1) year five percent (5%) of the final remittance to the local governments at the time of termination of collection of the tax to: (A) Cover possible refunds for overpayment of the tax; and (B) Redeem dishonored checks and drafts deposited to the credit of the suspense account.

(A) Cover possible refunds for overpayment of the tax; and

(B) Redeem dishonored checks and drafts deposited to the credit of the suspense account.

(6) After one (1) year has elapsed after the effective date of the abolishment of the tax, the secretary shall remit the balance of the suspense account to the governing bodies of the cities and counties and close the suspense account.

(7) The restriction of the use of the last federal decennial census referred to in this subsection shall not apply in the case of annexation, nor shall it affect the taking of a special census for any purpose other than the distribution of a countywide sales tax.

(8) (A) It is the intention of this subsection that the proceeds from the countywide gross receipts tax shall be allocated and distributed to each county and the municipalities therein on the basis of the last federal decennial census or the last countywide special census, whichever is the most recent. (B) If a municipality incorporates during a year in which a federal decennial census is conducted, then for purposes of this section and until data from a federal decennial or special census is made available to the municipality, the population of the municipality shall be based on the most recent federal decennial census as calculated by the Arkansas Geographic Information Systems Office.

(A) It is the intention of this subsection that the proceeds from the countywide gross receipts tax shall be allocated and distributed to each county and the municipalities therein on the basis of the last federal decennial census or the last countywide special census, whichever is the most recent.

(B) If a municipality incorporates during a year in which a federal decennial census is conducted, then for purposes of this section and until data from a federal decennial or special census is made available to the municipality, the population of the municipality shall be based on the most recent federal decennial census as calculated by the Arkansas Geographic Information Systems Office.

(e) (1) Except for revenue collected under subdivision (e)(2) of this section, money collected that is derived from a tax on aviation fuel levied by a county where a regional airport as described by the Regional Airport Act, § 14-362-101 et seq., is located shall not be deposited into the State Treasury but shall be deposited as cash funds by the Treasurer of State into a bank or banks designated by the regional airport located within the levying city and county and transmitted to the regional airport, subject to the charges by the state for its services as specified in this section. (2) Revenue derived from a tax on aviation fuel in effect on December 30, 1987, is not subject to this subsection.

(1) Except for revenue collected under subdivision (e)(2) of this section, money collected that is derived from a tax on aviation fuel levied by a county where a regional airport as described by the Regional Airport Act, § 14-362-101 et seq., is located shall not be deposited into the State Treasury but shall be deposited as cash funds by the Treasurer of State into a bank or banks designated by the regional airport located within the levying city and county and transmitted to the regional airport, subject to the charges by the state for its services as specified in this section.

(2) Revenue derived from a tax on aviation fuel in effect on December 30, 1987, is not subject to this subsection.

(f) Money collected that is derived from a tax on aviation fuel levied by a county that is not dedicated to a specific purpose and may legally be used for any lawful purpose shall not be deposited into the State Treasury but shall be deposited as cash funds by the Treasurer of State into a bank or banks designated by the county and transmitted directly to the publicly owned airport where the aviation fuel was sold, subject to the charges by the state for its services as specified in this section.

Amended by Act 2021, No. 438,§ 2, eff. 3/24/2021.

Amended by Act 2019, No. 910,§ 4388, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4387, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4386, eff. 7/1/2019.

Acts 1981, No. 991, § 10; 1983, No. 725, § 3; A.S.A. 1947, § 17-2019; Acts 1987, No. 688, § 1; 1987 (1st Ex. Sess.), No. 2, § 1; 1987 (1st Ex. Sess.), No. 56, § 1; 1991, No. 765, § 13; 1997, No. 1176, § 7; 2007, No. 166, § 3; 2009, No. 840, §§ 3, 4.
Ark. Code Ann. § 26-26-1602 — AR Code / Title 26 / Chapter 26 / Subchapter 16 / Section 26-26-1602
Report of property subject to assessment
Status: in_force

(a) For purposes of this subchapter, property is used or held for use in the operation of a company as such if it is owned or controlled by a utility or carrier and is being utilized, is capable of utilization, in the operation of a utility or carrier, or is being constructed for future utilization in the utility or carrier operation. However, leased property controlled by a utility or carrier shall not be assessed by a county assessor in this state if the property is assessed for ad valorem tax purposes by the Tax Division of the Arkansas Public Service Commission. (b) (1) All property, both real and personal, used or held for use in the operation of the company as such, of carriers, by pipeline, railroads, street railway, express, sleeping car, intercounty bus lines, intercounty motor freight, airline, ferry, interurban, toll bridge, toll road, or water transportation, and by similar carriers, and all telegraph, telephone, electric power, gas, water, and other similar companies shall be assessed for ad valorem taxation by the division. (2) Each such company doing business or authorized to do business in Arkansas and owning or having control of property, or owning or having control of property in Arkansas, shall, through its owner, president, secretary, general manager, or agent having control of the company's affairs in this state, on or before March 1 of each year, make a statement in writing to the division showing all property subject to assessment and taxation in this state. The statement shall truly show the amount, kind, and value of the property as of January 1 next preceding the filing of the annual statement. However, in the case of motor carriers, the statement and information shall be filed annually with the division on or before March 31. Acts 1927, No. 129, § 14; Pope's Dig., § 2040; Acts 1961, No. 129, § 1; 1963, No. 131, § 2; 1980 (2nd Ex. Sess.), No. 10, § 1; A.S.A. 1947, § 84-601.

(a) For purposes of this subchapter, property is used or held for use in the operation of a company as such if it is owned or controlled by a utility or carrier and is being utilized, is capable of utilization, in the operation of a utility or carrier, or is being constructed for future utilization in the utility or carrier operation. However, leased property controlled by a utility or carrier shall not be assessed by a county assessor in this state if the property is assessed for ad valorem tax purposes by the Tax Division of the Arkansas Public Service Commission.

(b) (1) All property, both real and personal, used or held for use in the operation of the company as such, of carriers, by pipeline, railroads, street railway, express, sleeping car, intercounty bus lines, intercounty motor freight, airline, ferry, interurban, toll bridge, toll road, or water transportation, and by similar carriers, and all telegraph, telephone, electric power, gas, water, and other similar companies shall be assessed for ad valorem taxation by the division. (2) Each such company doing business or authorized to do business in Arkansas and owning or having control of property, or owning or having control of property in Arkansas, shall, through its owner, president, secretary, general manager, or agent having control of the company's affairs in this state, on or before March 1 of each year, make a statement in writing to the division showing all property subject to assessment and taxation in this state. The statement shall truly show the amount, kind, and value of the property as of January 1 next preceding the filing of the annual statement. However, in the case of motor carriers, the statement and information shall be filed annually with the division on or before March 31.

(1) All property, both real and personal, used or held for use in the operation of the company as such, of carriers, by pipeline, railroads, street railway, express, sleeping car, intercounty bus lines, intercounty motor freight, airline, ferry, interurban, toll bridge, toll road, or water transportation, and by similar carriers, and all telegraph, telephone, electric power, gas, water, and other similar companies shall be assessed for ad valorem taxation by the division.

(2) Each such company doing business or authorized to do business in Arkansas and owning or having control of property, or owning or having control of property in Arkansas, shall, through its owner, president, secretary, general manager, or agent having control of the company's affairs in this state, on or before March 1 of each year, make a statement in writing to the division showing all property subject to assessment and taxation in this state. The statement shall truly show the amount, kind, and value of the property as of January 1 next preceding the filing of the annual statement. However, in the case of motor carriers, the statement and information shall be filed annually with the division on or before March 31.

Acts 1927, No. 129, § 14; Pope's Dig., § 2040; Acts 1961, No. 129, § 1; 1963, No. 131, § 2; 1980 (2nd Ex. Sess.), No. 10, § 1; A.S.A. 1947, § 84-601.
Ark. Code Ann. § 26-57-1407 — AR Code / Title 26 / Chapter 57 / Subchapter 14 / Section 26-57-1407
Out-of-state sales reports
Status: in_force

(a) Within fifteen (15) days following the end of each month, a person that sells cigarettes from Arkansas into another state shall: (1) File a report on the form prescribed by the Attorney General; and (2) Certify to Arkansas that the report is complete and accurate. (b) The report required under subsection (a) of this section shall contain the following information: (1) (A) The total number of cigarettes sold from Arkansas into another state by the person during the month. (B) The following information shall be identified by name and number of cigarettes: (i) The manufacturer of the cigarettes; (ii) The brand family of the cigarettes; and (iii) The name and address of each recipient of the cigarettes; (2) The number of stamps of each state other than Arkansas that the person affixed to each package containing cigarettes; (3) The total number of cigarettes contained in each package to which the person affixed a stamp from a state other than Arkansas; and (4) The manufacturer and brand family of each package to which the person affixed a stamp from a state other than Arkansas. (c) (1) If a person sells cigarettes during the month from Arkansas into another state in a package not bearing a stamp of the other state, the report required under subsection (a) of this section shall also include the following: (A) (i) The total number of cigarettes contained in each package. (ii) The following information shall be identified by name and number of cigarettes: (a) The manufacturer of the cigarettes; (b) The brand family of the cigarettes; and (c) The name and address of each recipient of the cigarettes; (B) The person's basis for belief that the state permits the sale of cigarettes to consumers in a package not bearing a stamp; and (C) The amount of excise tax, use tax, or similar tax imposed on the cigarettes and paid by the person to the state on the cigarettes. (2) A manufacturer or importer shall include the information described in subdivisions (c)(1)(B) and (C) of this section only as to cigarettes not sold to a person authorized by the law of the other state to affix the stamp required by the other state. (d) (1) For a manufacturer or importer, the report required under this section shall include cigarettes sold from Arkansas into another state through a sales entity affiliate. (2) A sales entity affiliate shall file a separate report under this section only to the extent that the sales entity affiliate sold cigarettes from Arkansas into another state that were not separately reported under this section by the affiliated manufacturer or importer. (e) The report required under this section shall also include reports filed with the taxing authority of each state other than Arkansas into which the cigarettes were sold. (f) The Attorney General may share the information reported under this section with the taxing authority or law enforcement agency of Arkansas or another state or with any other entity permitted by the Attorney General to aggregate the data. Acts 2011, No. 836, § 19.

(a) Within fifteen (15) days following the end of each month, a person that sells cigarettes from Arkansas into another state shall: (1) File a report on the form prescribed by the Attorney General; and (2) Certify to Arkansas that the report is complete and accurate.

(1) File a report on the form prescribed by the Attorney General; and

(2) Certify to Arkansas that the report is complete and accurate.

(b) The report required under subsection (a) of this section shall contain the following information: (1) (A) The total number of cigarettes sold from Arkansas into another state by the person during the month. (B) The following information shall be identified by name and number of cigarettes: (i) The manufacturer of the cigarettes; (ii) The brand family of the cigarettes; and (iii) The name and address of each recipient of the cigarettes; (2) The number of stamps of each state other than Arkansas that the person affixed to each package containing cigarettes; (3) The total number of cigarettes contained in each package to which the person affixed a stamp from a state other than Arkansas; and (4) The manufacturer and brand family of each package to which the person affixed a stamp from a state other than Arkansas.

(1) (A) The total number of cigarettes sold from Arkansas into another state by the person during the month. (B) The following information shall be identified by name and number of cigarettes: (i) The manufacturer of the cigarettes; (ii) The brand family of the cigarettes; and (iii) The name and address of each recipient of the cigarettes;

(A) The total number of cigarettes sold from Arkansas into another state by the person during the month.

(B) The following information shall be identified by name and number of cigarettes: (i) The manufacturer of the cigarettes; (ii) The brand family of the cigarettes; and (iii) The name and address of each recipient of the cigarettes;

(i) The manufacturer of the cigarettes;

(ii) The brand family of the cigarettes; and

(iii) The name and address of each recipient of the cigarettes;

(2) The number of stamps of each state other than Arkansas that the person affixed to each package containing cigarettes;

(3) The total number of cigarettes contained in each package to which the person affixed a stamp from a state other than Arkansas; and

(4) The manufacturer and brand family of each package to which the person affixed a stamp from a state other than Arkansas.

(c) (1) If a person sells cigarettes during the month from Arkansas into another state in a package not bearing a stamp of the other state, the report required under subsection (a) of this section shall also include the following: (A) (i) The total number of cigarettes contained in each package. (ii) The following information shall be identified by name and number of cigarettes: (a) The manufacturer of the cigarettes; (b) The brand family of the cigarettes; and (c) The name and address of each recipient of the cigarettes; (B) The person's basis for belief that the state permits the sale of cigarettes to consumers in a package not bearing a stamp; and (C) The amount of excise tax, use tax, or similar tax imposed on the cigarettes and paid by the person to the state on the cigarettes. (2) A manufacturer or importer shall include the information described in subdivisions (c)(1)(B) and (C) of this section only as to cigarettes not sold to a person authorized by the law of the other state to affix the stamp required by the other state.

(1) If a person sells cigarettes during the month from Arkansas into another state in a package not bearing a stamp of the other state, the report required under subsection (a) of this section shall also include the following: (A) (i) The total number of cigarettes contained in each package. (ii) The following information shall be identified by name and number of cigarettes: (a) The manufacturer of the cigarettes; (b) The brand family of the cigarettes; and (c) The name and address of each recipient of the cigarettes; (B) The person's basis for belief that the state permits the sale of cigarettes to consumers in a package not bearing a stamp; and (C) The amount of excise tax, use tax, or similar tax imposed on the cigarettes and paid by the person to the state on the cigarettes.

(A) (i) The total number of cigarettes contained in each package. (ii) The following information shall be identified by name and number of cigarettes: (a) The manufacturer of the cigarettes; (b) The brand family of the cigarettes; and (c) The name and address of each recipient of the cigarettes;

(i) The total number of cigarettes contained in each package.

(ii) The following information shall be identified by name and number of cigarettes: (a) The manufacturer of the cigarettes; (b) The brand family of the cigarettes; and (c) The name and address of each recipient of the cigarettes;

(a) The manufacturer of the cigarettes;

(b) The brand family of the cigarettes; and

(c) The name and address of each recipient of the cigarettes;

(B) The person's basis for belief that the state permits the sale of cigarettes to consumers in a package not bearing a stamp; and

(C) The amount of excise tax, use tax, or similar tax imposed on the cigarettes and paid by the person to the state on the cigarettes.

(2) A manufacturer or importer shall include the information described in subdivisions (c)(1)(B) and (C) of this section only as to cigarettes not sold to a person authorized by the law of the other state to affix the stamp required by the other state.

(d) (1) For a manufacturer or importer, the report required under this section shall include cigarettes sold from Arkansas into another state through a sales entity affiliate. (2) A sales entity affiliate shall file a separate report under this section only to the extent that the sales entity affiliate sold cigarettes from Arkansas into another state that were not separately reported under this section by the affiliated manufacturer or importer.

(1) For a manufacturer or importer, the report required under this section shall include cigarettes sold from Arkansas into another state through a sales entity affiliate.

(2) A sales entity affiliate shall file a separate report under this section only to the extent that the sales entity affiliate sold cigarettes from Arkansas into another state that were not separately reported under this section by the affiliated manufacturer or importer.

(e) The report required under this section shall also include reports filed with the taxing authority of each state other than Arkansas into which the cigarettes were sold.

(f) The Attorney General may share the information reported under this section with the taxing authority or law enforcement agency of Arkansas or another state or with any other entity permitted by the Attorney General to aggregate the data.

Acts 2011, No. 836, § 19.
Ark. Code Ann. § 26-57-1602 — AR Code / Title 26 / Chapter 57 / Subchapter 16 / Section 26-57-1602
Registration
Status: in_force

(a) A person that is entitled to claim a sales and use tax exemption under § 26-52-401(41) shall pay the fee required under § 26-57-1603 in lieu of paying the sales tax under the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., and the compensating use tax under the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq., on the exempt products and services. (b) A car wash operator that is required to pay a fee under § 26-57-1603 shall register electronically with the Secretary of the Department of Finance and Administration before an automatic car wash or a car wash tunnel is made available for commercial use. (c) The electronic registration form provided for in this section shall: (1) Be in the form prescribed by the secretary; and (2) Contain the information required by rules adopted by the secretary to implement this subchapter. Added by Act 2019, No. 822,§ 24, eff. 10/1/2019.

(a) A person that is entitled to claim a sales and use tax exemption under § 26-52-401(41) shall pay the fee required under § 26-57-1603 in lieu of paying the sales tax under the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., and the compensating use tax under the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq., on the exempt products and services.

(b) A car wash operator that is required to pay a fee under § 26-57-1603 shall register electronically with the Secretary of the Department of Finance and Administration before an automatic car wash or a car wash tunnel is made available for commercial use.

(c) The electronic registration form provided for in this section shall: (1) Be in the form prescribed by the secretary; and (2) Contain the information required by rules adopted by the secretary to implement this subchapter.

(1) Be in the form prescribed by the secretary; and

(2) Contain the information required by rules adopted by the secretary to implement this subchapter.

Added by Act 2019, No. 822,§ 24, eff. 10/1/2019.