Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 5 - STATE TAXES (§§ 26-50-101 — 26-65-108) › Chapter 53 - COMPENSATING OR USE TAXES (§§ 26-53-101 — 26-53-303) › Subchapter 1 - ARKANSAS COMPENSATING TAX ACT OF 1949 (§§ 26-53-101 — 26-53-150) › Section 26-53-125 - [Effective for tax years beginning on or after January 1, 2024] Return and payment of tax - Definition

(a)
(1)
(A)
The tax imposed by this subchapter shall be due and payable to the Secretary of the Department of Finance and Administration monthly on or before the twentieth day of each month except as provided in this subchapter.
(B)
When a taxpayer has become liable to file a report with the secretary, the taxpayer must continue to file a report, even though no tax is due, until the taxpayer notifies the secretary in writing that the taxpayer is no longer liable for those reports.
(2)
Every vendor selling tangible personal property, specified digital products, a digital code, or taxable services for storage, use, distribution, or consumption in this state shall file with the secretary on or before the twentieth day of each month a sales and use tax return for the preceding monthly period in such form as may be prescribed by the secretary, showing:
(A)
The total tax levied by this subchapter due on all tangible personal property, specified digital products, digital codes, or taxable services sold by the vendor during the preceding monthly period, the storage, use, distribution, or consumption of which is subject to the tax levied by this subchapter; and
(B)
Such other information as the secretary may deem necessary for the proper administration of this subchapter.
(3)
The return shall be accompanied by remittance of the amount of the tax required by this subchapter to be collected by the vendor during the period covered by the return.
(4)
(A)
A return shall be signed by the vendor or the vendor's duly authorized agent but need not be verified by oath.
(B)
A return filed electronically does not need to be signed.
(5)
(A)
A vendor required to collect and remit Arkansas compensating use tax that has average net sales of more than two hundred thousand dollars ($200,000) per month for the preceding calendar year shall make prepayment of the compensating use tax by electronic funds transfer, as defined in §
26-19-101
, according to one (1) of the following payment options:
(i)
(a)
Making two (2) compensating use tax payments by electronic funds transfer for the current calendar month. Each payment shall be equal to forty percent (40%) of the compensating use tax due on the monthly average net sales on or before the twelfth and twenty-fourth of each month.
(b)
The balance of actual collections for the month shall be remitted with the monthly excise tax report due by the twentieth day of the following month; or
(ii)
(a)
Paying by electronic funds transfer an amount equal to or exceeding eighty percent (80%) of the compensating use tax liability for the current calendar month on or before the twenty-fourth of each month.
(b)
The balance of actual collections for the month shall be remitted with the monthly excise tax report due by the twentieth day of the following month.
(B)
(i)
Failure to pay compensating use tax prepayments when due shall result in the assessment of a penalty equal to five percent (5%) of the amount of each required compensating use tax prepayment.
(ii)
If a taxpayer elects to prepay according to subdivision (a)(5)(A)(ii) of this section and fails to pay eighty percent (80%) of the compensating use tax liability by the twenty-fourth of the current month, a penalty shall not be assessed if the taxpayer proves that more than twenty percent (20%) of the taxpayer's compensating use tax liability arose from sales occurring after the twenty-fourth of the current month but before the last day of the current month.
(C)
For any electronic funds transfer or report required under subdivision (a)(5)(A) of this section, the due date of which falls on a Saturday, Sunday, legal holiday, or day the Federal Reserve Bank is closed, the electronic funds transfer or report shall be made on the next succeeding business day which is not a Saturday, Sunday, legal holiday, or day the Federal Reserve Bank is closed.
(D)
As used in this subdivision (a)(5), "net sales" means total sales price or purchase price less any deductions allowed by this chapter.
(b)
(1)
Every person purchasing tangible personal property, specified digital products, a digital code, or taxable services of which the storage, use, distribution, or consumption is subject to the tax levied by this subchapter and who has not paid the tax due with respect to the tangible personal property, specified digital products, digital code, or taxable services to a vendor registered in accordance with the provisions of §§
26-53-121
and
26-53-122
shall file a return with the secretary on or before the twentieth day of each month for the preceding monthly period in such a form as may be prescribed by the secretary showing:
(A)
The tax levied by this subchapter due on the tangible personal property, specified digital products, digital code, or taxable services purchased during the preceding monthly period; and
(B)
Such other information as the secretary may deem necessary for the proper administration of this subchapter.
(2)
The return shall be accompanied by a remittance of the amount of the tax required by this subchapter to be paid by the person purchasing the tangible personal property, specified digital products, digital code, or taxable services during the period covered by the return.
(3)
(A)
A return shall be signed by the person liable for the tax or the person's authorized agent but need not be verified by oath.
(B)
A return filed electronically does not need to be signed.
(c)
A vendor that does not have a legal requirement to register under the Arkansas Gross Receipts Act of 1941, §
26-52-101
et seq., or this subchapter and is not using a certified service provider or a certified automated system as defined under the Uniform Sales and Use Tax Administration Act, §
26-20-101
et seq., shall submit sales and use tax returns as follows:
(1)
Upon registration, the secretary shall provide the vendor the required Arkansas returns;
(2)
The vendor shall file a return any time within one (1) year of the month of initial registration, and future returns may be required on an annual basis in succeeding years; and
(3)
In addition to the returns required in subdivision (c)(2) of this section, the vendor may be required to submit returns in the month following any month in which the vendor has accumulated state and local tax funds in the total amount of one thousand dollars ($1,000) or more.
(d)
(1)
When the average amount of tax for which the taxpayer is liable for the previous fiscal year beginning on July 1 and ending on June 30 does not exceed one hundred dollars ($100) per month, the secretary may notify the taxpayer that a quarterly report and remittance in lieu of a monthly report may be made on or before July 20, October 20, January 20, and April 20 of each year for the preceding three-month period.
(2)
When the average amount of tax for which the taxpayer is liable for the previous fiscal year beginning on July 1 and ending on June 30 does not exceed twenty-five dollars ($25.00) per month, the secretary may notify the taxpayer that a yearly report and remittance in lieu of a monthly report may be made on or before January 20 of each year for the preceding twelve-month period.
(e)
(1)
Any report or remittance required under this section of which the due date falls on a Saturday, Sunday, or legal holiday shall be postmarked or transmitted on the next succeeding business day that is not a Saturday, Sunday, or legal holiday.
(2)
If the Federal Reserve Bank is closed on a due date that prohibits a vendor from being able to make a remittance through electronic funds transfer, the remittance shall be accepted as timely if made on the next day the Federal Reserve Bank is open.
(3)
A report filed in conjunction with a remittance that cannot be made due to the closure of the Federal Reserve Bank shall be accepted as timely if filed in conjunction with the payment on the next day the Federal Reserve Bank is open.
(f)
For tax years beginning on or after January 1, 2024, a taxpayer who has an average monthly compensating use tax liability of five thousand dollars ($5,000) or more for the preceding fiscal year that began on July 1 and ended on June 30 shall file all returns and remittances required by this section electronically.
(g)
The secretary may waive the electronic filing and payment requirements under subsection (f) of this section if the secretary determines that filing the return electronically would cause an undue hardship on the taxpayer.
Amended by Act 2023, No. 192,§ 2, eff. for tax years beginning on or after January 1, 2024.
Amended by Act 2019, No. 910,§ 3907, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 3906, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 3905, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 3904, eff. 7/1/2019.
Amended by Act 2017, No. 141,§ 55, eff. for tax years beginning on and after 1/1/2018.
Amended by Act 2017, No. 141,§ 54, eff. for tax years beginning on and after 1/1/2018.
Acts 1949, No. 487, § 9; 1979, No. 915, § 2; A.S.A. 1947, § 84-3109; Acts 1991, No. 688, § 3; 2003, No. 664, §§ 3, 4; 2003, No. 1273, §§ 27-30; 2007, No. 181, § 35; 2011, No. 291, § 15; 2011, No. 1142, § 1.
This section is set out more than once due to postponed, multiple, or conflicting amendments.