Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 6 - LOCAL TAXES (§§ 26-73-101 — 26-82-119) › Chapter 75 - MUNICIPAL SALES AND USE TAXES (§§ 26-75-101 — 26-75-801) › Subchapter 6 - ADVERTISING AND PROMOTION COMMISSION ACT (§§ 26-75-601 — 26-75-619) › Section 26-75-603 - Collection of tax

(a)
A person liable for a tax levied under §
26-75-602
shall pay the tax, and the advertising and promotion commission of the levying city or a designated agent of the commission shall collect the tax in the same manner and at the same time as the tax levied by the Arkansas Gross Receipts Act of 1941, §
26-52-101
et seq.
(b)
(1)
(A)
The person paying the tax levied under §
26-75-602
shall report and remit it upon forms provided by the commission and as directed by the commission.
(B)
The rules, forms of notice, assessment procedures, and the enforcement and collection of the tax under the Arkansas Gross Receipts Act of 1941, §
26-52-101
et seq., and the Arkansas Tax Procedure Act, §
26-18-101
et seq., are applicable with respect to the enforcement and collection of the tax levied under §
26-75-602
.
(2)
(A)
However, the administration, enforcement of the tax levied under §
26-75-602
, and all actions arising from the tax levied under §
26-75-602
shall be by and in the name of the commission through the proper commission officials or agents.
(B)
The commission may sue and be sued in its name.
(3)
The Department of Finance and Administration shall have no authority to enforce or collect the tax levied under §
26-75-602
.
(c)
The levying city may adopt ordinances:
(1)
Consistent with and in similar form to the Arkansas Tax Procedure Act, §
26-18-101
et seq., to enable the commission or the commission's agent to enforce the tax levied under §
26-75-602
through examination of records, notices of proposed and final assessment, and administrative hearings on proposed assessments; and
(2)
That enable the commission to:
(A)
(i)
Assess penalties and interest against taxpayers who fail to timely report or pay the tax levied under §
26-75-602
.
(ii)
The penalty is equal to five percent (5%) of the unpaid tax amount per month not to exceed a total assessment of thirty-five percent (35%) of the unpaid tax.
(iii)
Simple interest on unpaid taxes shall be assessed at the rate of ten percent (10%) per annum;
(B)
Assess unpaid or unreported tax within three (3) years of the date the tax is due;
(C)
Provide judicial relief from proposed assessments in accordance with subsection (d) of this section; and
(D)
Issue certificates of indebtedness in accordance with subdivision (c)(2)(C) of this section.
(d)
(1)
Within thirty (30) days of the issuance of the notice and demand for payment of a deficiency in tax established by a final determination of the hearing officer, a taxpayer may seek judicial relief from the final determination by either:
(A)
Paying under protest the amount of the deficiency, plus penalty and interest determined by the commission to be due, and filing a suit to recover that amount within one (1) year from the date of payment under protest; or
(B)
(i)
Filing with the commission a bond in double the amount of the tax deficiency due.
(ii)
The bond shall be subject to the condition that the taxpayer shall:
(a)
File suit within thirty (30) days after filing the bond to stay the effect of the commission's determination;
(b)
Faithfully and diligently prosecute the suit to a final determination; and
(c)
Pay any deficiency found by the court to be due and any court costs assessed against the taxpayer.
(iii)
A taxpayer's failure to file suit, diligently prosecute the suit, or pay any tax deficiency and court costs, as required by this subsection, shall result in the forfeiture of the bond in the amount of the assessment and assessed court costs.
(2)
(A)
The methods provided in this section are the exclusive methods for seeking relief from a written decision of the commission establishing a deficiency in tax.
(B)
A court shall not issue an injunction to stay proceedings for assessment or collection of the tax levied under §
26-75-602
.
(e)
(1)
If a taxpayer does not timely and properly pursue the taxpayer's remedies seeking relief from a decision of the commission and a final assessment is made against the taxpayer, or if the taxpayer fails to pay the deficiency assessed upon notice and demand, then the commission as soon as practicable thereafter shall issue to the circuit clerk of the county in which the taxpayer's business is located a certificate of indebtedness certifying that the person named in the certificate of indebtedness is indebted to the commission for the amount of the tax established by the commission as due.
(2)
The circuit clerk shall enter immediately upon the circuit court judgment docket:
(A)
The name of the delinquent taxpayer;
(B)
The amount certified as being due;
(C)
The name of the tax; and
(D)
The date of entry upon the judgment docket.
(3)
The entry of the certificate of indebtedness:
(A)
Has the same force and effect as the entry of a judgment rendered by the circuit court; and
(B)
Constitutes the commission's lien upon the title of any real and personal property of the taxpayer in the county in which the certificate of indebtedness is recorded.
(4)
(A)
The certificate of indebtedness authorized by this subsection shall continue in force for ten (10) years from the date of recording and shall automatically expire after the ten-year period has run.
(B)
Actions on the lien on the certificate of indebtedness shall be commenced within ten (10) years after the date of recording of the certificate.
(5)
The commission has all remedies and may take all proceedings for the collection of the tax levied under §
26-75-602
that may be taken for the recovery of a judgment at law.
(f)
Subsections (d) and (e) of this section are effective only when the levying city adopts and the voters approve an ordinance under §
26-75-602
that specifically provides that the commission shall utilize subsections (d) and (e) of this section in enforcing the tax levied under §
26-75-602
.
Amended by Act 2023, No. 190,§ 2, eff. 3/6/2023, app. to ordinances levying or increasing taxes subject to this act that are enacted on or after the effective date of this act.
Amended by Act 2019, No. 315,§ 3073, eff. 7/24/2019.
Acts 1965, No. 185, § 3; 1965 (1st Ex. Sess.), No. 30, § 1; A.S.A. 1947, § 19-4614; Acts 1993, No. 364, § 2; 1997, No. 1016, § 1.