reglab/statecodes huggingface dataset:
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 10 - BUSINESS CLOSURE (§§ 26-18-1001 — 26-18-1006) › Section 26-18-1005 - Suspension of a business license

(a)
After the decision to close the noncompliant taxpayer's business becomes final, the Secretary of the Department of Finance and Administration shall contact the appropriate administrative body responsible for granting licenses to operate the business and report the closure of the business.
(b)
The closure of a business under this subchapter shall be grounds for the suspension or revocation of any business license granted under the laws of the State of Arkansas, excluding professional licenses.
Amended by Act 2019, No. 910,§ 3660, eff. 7/1/2019.
Acts 2003 (2nd Ex. Sess.), No. 46, § 2.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 10 - BUSINESS CLOSURE (§§ 26-18-1001 — 26-18-1006) › Section 26-18-1006 - Authority to promulgate rules

The Secretary of the Department of Finance and Administration may promulgate rules necessary for the enforcement of this subchapter.
Amended by Act 2019, No. 910,§ 3661, eff. 7/1/2019.
Acts 2003 (2nd Ex. Sess.), No. 46, § 2.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 11 - INDEPENDENT TAX APPEALS COMMISSION ACT (§§ 26-18-1101 — 26-18-1120) › Section 26-18-1101 - Title

This subchapter shall be known and may be cited as the "Independent Tax Appeals Commission Act".
Added by Act 2021, No. 586,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 11 - INDEPENDENT TAX APPEALS COMMISSION ACT (§§ 26-18-1101 — 26-18-1120) › Section 26-18-1102 - Legislative purpose

(a)
The state shall create, within the Department of Inspector General, an independent agency with tax expertise to resolve disputes between the Department of Finance and Administration and taxpayers before requiring the payments of the amount in issue.
(b)
By establishing the Tax Appeals Commission as an independent tax tribunal within the executive branch of government, this subchapter provides taxpayers with a means of resolving controversies with the Department of Finance and Administration before a neutral body.
Added by Act 2021, No. 586,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 11 - INDEPENDENT TAX APPEALS COMMISSION ACT (§§ 26-18-1101 — 26-18-1120) › Section 26-18-1103 - Legislative intent - Construction

This subchapter shall be interpreted and construed to further the intent of the General Assembly to provide the people of Arkansas with an independent tax appeals commission to hear and resolve tax disputes between taxpayers and the Department of Finance and Administration.
Added by Act 2021, No. 586,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 11 - INDEPENDENT TAX APPEALS COMMISSION ACT (§§ 26-18-1101 — 26-18-1120) › Section 26-18-1104 - Definition

As used in this subchapter, "taxpayer" means an individual or entity that:
(1)
Is challenging the state's taxing jurisdiction over the taxpayer; or
(2)
Has standing to challenge a decision by the Department of Finance and Administration:
(A)
Imposing liability for a tax, penalty, or interest;
(B)
Denying a credit or deduction;
(C)
Denying a refund, credit, or incentive claim or application;
(D)
Canceling, refusing, or revoking a license or permit under §
26-18-601
, §
26-52-803
, §
26-55-219
, §
26-55-224
, §
26-55-231
, §
26-56-204
, §
26-56-311
, §
26-57-413
, §
26-57-419
, or §
26-62-204
;
(E)
Closing a noncompliant taxpayer's business;
(F)
Relating to a jeopardy assessment;
(G)
Seizing a vending device or a coin-operated amusement device; or
(H)
Taking any other action that provides a taxpayer the right to a hearing with the Tax Appeals Commission under state law.
Added by Act 2021, No. 586,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 11 - INDEPENDENT TAX APPEALS COMMISSION ACT (§§ 26-18-1101 — 26-18-1120) › Section 26-18-1105 - Tax Appeals Commission - Creation

(a)
(1)
The Tax Appeals Commission is created within the Department of Inspector General and shall be under the direction, control, and supervision of the Secretary of the Department of Inspector General.
(2)
Notwithstanding subdivision (a)(1) of this section, the commission shall independently decide matters before the commission.
(b)
The commission shall:
(1)
Be separate from and independent of the authority, control, and supervision of the Department of Finance and Administration; and
(2)
Have a seal.
Added by Act 2021, No. 586,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 11 - INDEPENDENT TAX APPEALS COMMISSION ACT (§§ 26-18-1101 — 26-18-1120) › Section 26-18-1107 - Qualifications of commissioners

(a)
Each commissioner of the Tax Appeals Commission shall:
(1)
Be a qualified elector of the State of Arkansas;
(2)
Be licensed to practice law in the state or certified as a certified public accountant in the state, or both; and
(3)
Possess substantial knowledge of Arkansas tax law.
(b)
In addition to meeting the requirements of subsection (a) of this section, the Chief Commissioner of the Tax Appeals Commission shall have been engaged in the private practice of law or accounting, employed in the private sector, or engaged in any combination of the private practice of law, the private practice of accounting, and employment in the private sector, for at least five (5) of the immediately preceding ten (10) years before his or her first appointment to the commission.
Amended by Act 2023, No. 346,§ 3, eff. 3/21/2023.
Added by Act 2021, No. 586,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 11 - INDEPENDENT TAX APPEALS COMMISSION ACT (§§ 26-18-1101 — 26-18-1120) › Section 26-18-1108 - Location of the Tax Appeals Commission - On-site observation

(a)
The principal office of the Tax Appeals Commission shall be located in:
(1)
Little Rock, Arkansas; and
(2)
A building that is separate from any building in which a division of the Department of Finance and Administration is located.
(b)
To provide taxpayers a reasonable opportunity to appear before the commission, the commission may conduct its hearings at:
(1)
Its principal office; and
(2)
Buildings or facilities, or both, leased or owned by state or local public agencies or entities within the state.
(c)
(1)
The commission may contract only with state and local public agencies or entities in the State of Arkansas to arrange for hearing rooms, chambers, offices, or other appropriate facilities for the commission's principal office in Little Rock and for hearings not held at the commission's principal office.
(2)
The limitation stated in subdivision (c)(1) of this section does not apply to teleconferencing, videoconferencing, or similar electronic means that may allow for remote participation in commission proceedings.
(d)
With the consent of the taxpayer and with all parties invited to observe, the commission may conduct on-site observation of tangible personal property, real property, and activities that are relevant to a controversy.
Added by Act 2021, No. 586,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 11 - INDEPENDENT TAX APPEALS COMMISSION ACT (§§ 26-18-1101 — 26-18-1120) › Section 26-18-1109 - Employees

(a)
The Tax Appeals Commission:
(1)
May employ a clerk, an assistant, and other employees as necessary to carry out the duties of the commission; and
(2)
Shall employ:
(A)
(i)
A staff attorney.
(ii)
The duties of the staff attorney shall include without limitation assisting the commissioners with drafting decisions; and
(B)
An accountant who has experience in tax issues related to manufacturing and business.
(b)
An employee of the commission shall not act as an attorney, a representative, or an accountant for a taxpayer in a matter involving a tax imposed or levied under state law by the Department of Finance and Administration or by any other state or local public agency.
Added by Act 2021, No. 586,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 11 - INDEPENDENT TAX APPEALS COMMISSION ACT (§§ 26-18-1101 — 26-18-1120) › Section 26-18-1110 - Jurisdiction

(a)
The Tax Appeals Commission has administrative jurisdiction to:
(1)
Except as otherwise provided in this section, hear disputes involving all state taxes administered by the Secretary of the Department of Finance and Administration;
(2)
Hear a matter properly before the commission regardless of whether the taxpayer has paid to the Department of Finance and Administration some or all of the disputed tax or other amounts before or during the pendency of proceedings before the commission;
(3)
Consistent with a decision issued by the commission, compel the secretary to:
(A)
Issue a final assessment;
(B)
Issue a refund;
(C)
Reduce, set aside, alter, change, or remedy an action by the department that is subject to appeal, if appropriate under state law; or
(D)
Take other appropriate action; and
(4)
(A)
Except as provided in subdivision (a)(4)(B) of this section, extend a deadline provided under this subchapter.
(B)
The commission shall not extend the deadline for:
(i)
A taxpayer to file a petition under §
26-18-1113
; or
(ii)
The commission to issue a decision, except as otherwise provided under §
26-18-1116(b)
.
(b)
The commission does not have jurisdiction to:
(1)
Hear disputes involving taxes that are excepted from the Arkansas Tax Procedure Act under §
26-18-102
;
(2)
Decide questions regarding the constitutionality of the application of statutes to a taxpayer or the constitutionality of rules promulgated by the department;
(3)
Hear a claim for protection against enforcement of an illegal exaction under Arkansas Constitution, Article 16, § 13;
(4)
Hear or decide claims for which the Office of Hearings and Appeals has issued an administrative decision; or
(5)
Hear or decide a claim that is the subject of pending litigation.
(c)
Upon the creation of the commission:
(1)
The Office of Hearings and Appeals shall hear a proceeding resulting from an action or decision by the secretary, including without limitation the issuance of a proposed assessment, a refund claim denial, or any other matter brought by a taxpayer, that was issued before January 1, 2023;
(2)
The commission shall hear a proceeding resulting from an action or decision by the secretary, including without limitation the issuance of a proposed assessment, a refund claim denial, or any other matter brought by a taxpayer, that was issued on or after January 1, 2023; and
(3)
A taxpayer that has a matter pending before the Office of Hearings and Appeals for which a hearing or prehearing has not been held may elect to have the taxpayer's matter transferred to the commission.
Added by Act 2021, No. 586,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 11 - INDEPENDENT TAX APPEALS COMMISSION ACT (§§ 26-18-1101 — 26-18-1120) › Section 26-18-1111 - Settlement of tax disputes

(a)
A taxpayer and the Department of Finance and Administration may settle or compromise controversies at any time under §
26-18-705
.
(b)
If a matter is settled after a petition has been filed with the Tax Appeals Commission under this subchapter, the parties shall notify the commission so that the matter is withdrawn from consideration by the commission.
Added by Act 2021, No. 586,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 11 - INDEPENDENT TAX APPEALS COMMISSION ACT (§§ 26-18-1101 — 26-18-1120) › Section 26-18-1112 - Service of process

(a)
Mailing by first class mail to any of the following constitutes service on the other party under this subchapter:
(1)
The address of the taxpayer given on the taxpayer's petition, if the taxpayer does not have a representative of record;
(2)
The address of the taxpayer's representative of record; or
(3)
The address designated by the Department of Finance and Administration as the proper place of service on the department.
(b)
The Tax Appeals Commission may:
(1)
(A)
Prescribe other methods of service of process.
(B)
Any additional methods of service of process prescribed under subdivision (b)(1)(A) of this section shall be prescribed by rule;
(2)
Establish methods of electronic filing and service of process; and
(3)
Order that notice be given to additional persons.
Added by Act 2021, No. 586,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 11 - INDEPENDENT TAX APPEALS COMMISSION ACT (§§ 26-18-1101 — 26-18-1120) › Section 26-18-1114 - Stipulation

The parties to a proceeding shall make every reasonable effort to stipulate all relevant and nonprivileged facts to the fullest extent to which a complete or qualified agreement can or fairly should be reached.
Added by Act 2021, No. 586,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 11 - INDEPENDENT TAX APPEALS COMMISSION ACT (§§ 26-18-1101 — 26-18-1120) › Section 26-18-1117 - Judicial relief

(a)
A taxpayer may seek judicial relief from a decision of the Tax Appeals Commission by following the procedures stated in the Arkansas Tax Procedure Act, §
26-18-101
et seq.
(b)
(1)
Except as provided in subdivision (b)(4) of this section, the Department of Finance and Administration may seek judicial relief from a decision of the commission by filing suit against the taxpayer in Pulaski County Circuit Court or in the circuit court of the county in which the taxpayer resides or has its principal place of business in the state.
(2)
A taxpayer may remove a suit filed by the department to the circuit court of the county in which the taxpayer resides or has its principal place of business in the state.
(3)
A matter subject to judicial relief under this section shall be tried de novo.
(4)
(A)
The department may seek judicial relief from a decision of the commission regarding sales and use tax only if:
(i)
The total aggregate amount of sales and use tax shown on the proposed tax assessments under §
26-18-403(a)
that are the subject of the petition before the commission on which a decision was rendered exceeds ten thousand dollars ($10,000), exclusive of interest and penalties; or
(ii)
The total aggregate amount of money shown as denied on the refund denials issued under §
26-18-507(e)
that are the subject of the petition before the commission on which a decision was rendered exceeds ten thousand dollars ($10,000), exclusive of interest and penalties.
(B)
Subdivision (b)(4)(A) of this section applies to actions commenced under §
26-18-1113
on or after the effective date of this act.
(c)
An appeal will lie from the circuit court to the Supreme Court, as in other cases provided by law.
(d)
The Arkansas Rules of Civil Procedure and §
16-56-126
concerning nonsuit and commencement of new actions apply to appeals under this section.
Amended by Act 2024, No. 165,§ 21, eff. 7/1/2024.
Amended by Act 2024, No. 165,§ 20, eff. 7/1/2024.
Added by Act 2021, No. 586,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 11 - INDEPENDENT TAX APPEALS COMMISSION ACT (§§ 26-18-1101 — 26-18-1120) › Section 26-18-1118 - Representation

(a)
(1)
A taxpayer may be represented at a hearing pro se or by an authorized representative who has provided a completed power of attorney form to the Tax Appeals Commission in the manner prescribed by the commission.
(2)
A completed power of attorney form shall:
(A)
Be attached to the taxpayer's petition; or
(B)
Accompany the authorized representative's entry of appearance if the taxpayer's authorized representative files an entry of appearance after the petition has been filed.
(3)
If the taxpayer fails to attach a power of attorney to the petition, the commission shall allow the taxpayer thirty (30) calendar days to file the required power of attorney.
(4)
Absent information indicating that the taxpayer has an authorized representative, the Department of Finance and Administration may communicate directly with the taxpayer.
(b)
The department shall be represented by an authorized representative at a hearing.
Added by Act 2021, No. 586,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 11 - INDEPENDENT TAX APPEALS COMMISSION ACT (§§ 26-18-1101 — 26-18-1120) › Section 26-18-1119 - Publication of decisions

(a)
The Tax Appeals Commission shall index and publish a decision under this subchapter in the print or electronic form that the commission deems best adapted for public convenience.
(b)
All personally identifying taxpayer information shall be redacted before the publication of a decision under this subchapter.
(c)
The publication of a decision under this subchapter shall be made permanently available and shall be an official report of the commission.
Added by Act 2021, No. 586,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 18 - STATE TAX PROCEDURE GENERALLY (§§ 26-18-101 — 26-18-1120) › Subchapter 11 - INDEPENDENT TAX APPEALS COMMISSION ACT (§§ 26-18-1101 — 26-18-1120) › Section 26-18-1120 - Rules

The Tax Appeals Commission shall promulgate rules and forms to:
(1)
Carry out the intent and purpose of this subchapter; and
(2)
Implement the duties assigned to the commission, including without limitation rules:
(A)
Governing pleadings and service of process requirements to commence a hearing under this subchapter and the practice and procedure rules of the commission;
(B)
To provide for expedited proceedings;
(C)
To establish guidelines for the redaction of personally identifying taxpayer information in published decisions; and
(D)
To establish a procedure for petitions and hearings under:
(i)
Section
26-18-402
;
(ii)
Section
26-18-601(b) and (c)
;
(iii)
Section
26-18-1002
;
(iv)
Section
26-36-315
;
(v)
Section
26-55-219
;
(vi)
Section
26-55-224
;
(vii)
Section
26-55-231
;
(viii)
Section
26-55-247
;
(ix)
Section
26-56-204
;
(x)
Section
26-56-311
;
(xi)
Section
26-57-413
;
(xii)
Section
26-57-419
;
(xiii)
Section
26-57-1212
; and
(xiv)
Section
26-62-204
.
Added by Act 2021, No. 586,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 19 - ELECTRONIC FUNDS (§§ 26-19-101 — 26-19-108) › Section 26-19-101 - Definition

(a)
As used in this subchapter, "electronic funds transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit an account, commonly referenced as either an automated clearinghouse credit or an automated clearinghouse debit.
(b)
A transfer of funds by wire transfer which contains no electronic record from which to identify the taxpayer, tax type, tax account number, and tax period is not an electronic funds transfer.
Acts 1993, No. 848, § 1; 1999, No. 1132, § 3.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 19 - ELECTRONIC FUNDS (§§ 26-19-101 — 26-19-108) › Section 26-19-102 - Applicability of Arkansas Tax Procedure Act

The provisions of the Arkansas Tax Procedure Act, §
26-18-101
et seq., shall be applicable to this subchapter.
Acts 1993, No. 848, § 2.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 19 - ELECTRONIC FUNDS (§§ 26-19-101 — 26-19-108) › Section 26-19-103 - Authority of Secretary of the Department of Finance and Administration

The Secretary of the Department of Finance and Administration is authorized to require, and to contract for services necessary to implement, payment of taxes as specified in this subchapter by electronic funds transfer. Provided, however, that this subchapter shall not be construed to require the secretary to contract for such services or implement a system for payment of any taxes by electronic funds transfer if the secretary determines that it is fiscally unsound or administratively burdensome to do so.
Amended by Act 2019, No. 910,§ 3662, eff. 7/1/2019.
Acts 1993, No. 848, § 3.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 19 - ELECTRONIC FUNDS (§§ 26-19-101 — 26-19-108) › Section 26-19-104 - Effective dates

The provisions of this subchapter shall be effective on and after January 1, 1994, for the taxes set forth in §
26-19-105(a)(1)
; on and after January 1, 1995, for the taxes set forth in §
26-19-105(a)(2)
; and for the taxable period beginning on or after January 1, 1995, for the taxes set forth in §
26-19-106
.
Acts 1993, No. 848, § 4.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 19 - ELECTRONIC FUNDS (§§ 26-19-101 — 26-19-108) › Section 26-19-106 - Payment by corporation

(a)
If the Secretary of the Department of Finance and Administration determines that a corporation's estimated quarterly state income tax liability under §
26-51-911
et seq. equals or exceeds twenty thousand dollars ($20,000), the corporation shall pay the quarterly income taxes due by electronic funds transfer.
(b)
A corporation's quarterly liability shall be determined on the basis of average quarterly liability for the preceding year.
(c)
(1)
The transfer shall be made no later than the day before the due date for payment of the taxes so that payment of the taxes is received by the secretary on or before the due date for payment of the taxes as required by the laws of this state.
(2)
If the corporation's income tax payment is timely made by electronic funds transfer, the corporation is not required to file a quarterly estimated tax declaration.
Amended by Act 2019, No. 910,§ 3667, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 3666, eff. 7/1/2019.
Acts 1993, No. 848, § 6.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 19 - ELECTRONIC FUNDS (§§ 26-19-101 — 26-19-108) › Section 26-19-108 - Rules

The Secretary of the Department of Finance and Administration is authorized to adopt rules which he or she deems necessary to implement and enforce the provisions of this chapter.
Amended by Act 2019, No. 315,§ 2948, eff. 7/24/2019.
Amended by Act 2019, No. 910,§ 3671, eff. 7/1/2019.
Acts 1993, No. 848, § 9.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 20 - UNIFORM SALES AND USE TAX ADMINISTRATION ACT (§§ 26-20-101 — 26-20-109) › Section 26-20-101 - Title

This chapter shall be known as and referred to as the "Uniform Sales and Use Tax Administration Act".
Acts 2001, No. 1279, § 1.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 20 - UNIFORM SALES AND USE TAX ADMINISTRATION ACT (§§ 26-20-101 — 26-20-109) › Section 26-20-102 - Definitions

As used in this chapter:
(1)
"Agreement" means the Streamlined Sales and Use Tax Agreement;
(2)
"Certified automated system" means software certified jointly by the states that are signatories to the agreement and which is used to calculate the sales and use tax imposed by each jurisdiction on a transaction, determine the amount of tax to remit to the appropriate state, and maintain a record of the transaction;
(3)
"Certified service provider" means an agent certified jointly by the states that are signatories to the agreement to perform all of the seller's sales and use tax functions;
(4)
[Repealed.]
(5)
"Person" means an individual, trust, estate, fiduciary, partnership, limited liability company, limited liability partnership, corporation, or any other legal entity;
(6)
"Sales tax" means the tax levied under the Arkansas Gross Receipts Act of 1941, §
26-52-101
et seq.;
(7)
"Seller" means any person making sales, leases or rentals of personal property or services;
(8)
"State" means any state of the United States and the District of Columbia; and
(9)
"Use tax" means the tax levied under the Arkansas Compensating Tax Act of 1949, §
26-53-101
et seq.
Amended by Act 2019, No. 910,§ 3672, eff. 7/1/2019.
Acts 2001, No. 1279, § 2.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 20 - UNIFORM SALES AND USE TAX ADMINISTRATION ACT (§§ 26-20-101 — 26-20-109) › Section 26-20-103 - Legislative finding

The Eighty-Third General Assembly finds that this state should enter into an agreement with one (1) or more states to simplify and modernize sales and use tax administration in order to substantially reduce the burden of tax compliance for all sellers and for all types of commerce.
Acts 2001, No. 1279, § 3.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 20 - UNIFORM SALES AND USE TAX ADMINISTRATION ACT (§§ 26-20-101 — 26-20-109) › Section 26-20-104 - Authority to enter agreement

(a)
The Secretary of the Department of Finance and Administration is authorized and directed to enter into the Streamlined Sales and Use Tax Agreement with one (1) or more states to simplify and modernize sales and use tax administration in order to substantially reduce the burden of tax compliance for all sellers and for all types of commerce.
(b)
In furtherance of the agreement, the secretary is authorized to act jointly with other states that are members of the agreement to establish standards for certification of a certified service provider and certified automated system and establish performance standards for multistate sellers.
(c)
The secretary is further authorized to take other actions reasonably required to implement the provisions set forth in this chapter.
(d)
Other actions authorized by this section include, but are not limited to, the adoption of rules and the joint procurement, with other member states, of goods and services in furtherance of the cooperative agreement.
(e)
The secretary or his or her designee is authorized to represent this state before the other states that are signatories to the agreement.
Amended by Act 2019, No. 910,§ 3673, eff. 7/1/2019.
Acts 2001, No. 1279, § 4.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 20 - UNIFORM SALES AND USE TAX ADMINISTRATION ACT (§§ 26-20-101 — 26-20-109) › Section 26-20-105 - Relationship to state law

(a)
No provision of the agreement authorized by this chapter in whole or part invalidates or amends any provision of the law of this state.
(b)
Adoption of the agreement by this state does not amend or modify any law of this state.
(c)
Implementation of any condition of the agreement in this state, whether adopted before, at, or after membership of this state in the agreement, must be by the action of this state.
Acts 2001, No. 1279, § 5.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 20 - UNIFORM SALES AND USE TAX ADMINISTRATION ACT (§§ 26-20-101 — 26-20-109) › Section 26-20-107 - Cooperating sovereigns

(a)
The agreement authorized by this chapter is an accord among individual cooperating sovereigns in furtherance of their governmental functions.
(b)
The agreement provides a mechanism among the member states to establish and maintain a cooperative, simplified system for the application and administration of sales and use taxes under the duly adopted law of each member state.
Acts 2001, No. 1279, § 7.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 20 - UNIFORM SALES AND USE TAX ADMINISTRATION ACT (§§ 26-20-101 — 26-20-109) › Section 26-20-108 - Limited binding and beneficial effect

(a)
(1)
The agreement authorized by this chapter binds and inures only to the benefit of this state and the other member states.
(2)
No person, other than a member state, is an intended beneficiary of the agreement.
(3)
Any benefit to a person other than a state is established by the law of this state and the other member states and not by the terms of the agreement.
(b)
(1)
Consistent with subsection (a) of this section, no person shall have any cause of action or defense under the agreement or by virtue of this state's approval of the agreement.
(2)
No person may challenge, in any action brought under any provision of law, any action or inaction by any department, agency, or other instrumentality of this state, or any political subdivision of this state on the ground that the action or inaction is inconsistent with the agreement.
(c)
No law of this state, or the application thereof, may be declared invalid as to any person or circumstance on the ground that the provision or application is inconsistent with the agreement.
Acts 2001, No. 1279, § 8.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 20 - UNIFORM SALES AND USE TAX ADMINISTRATION ACT (§§ 26-20-101 — 26-20-109) › Section 26-20-109 - Seller and third-party liability

(a)
(1)
A certified service provider is the agent of a seller, with whom the certified service provider has contracted, for the collection and remittance of sales and use taxes.
(2)
As the seller's agent, the certified service provider is liable for sales and use tax due each member state on all sales transactions it processes for the seller except as set out in this section.
(3)
A seller that contracts with a certified service provider is not liable to the state for sales or use tax due on transactions processed by the certified service provider unless the seller misrepresented the type of items it sells or committed fraud.
(4)
In the absence of probable cause to believe that the seller has committed fraud or made a material misrepresentation, the seller is not subject to audit on the transactions processed by the certified service provider.
(5)
A seller is subject to audit for transactions not processed by the certified service provider.
(6)
The member states acting jointly may perform a system check of the seller and review the seller's procedures to determine if the certified service provider's system is functioning properly and the extent to which the seller's transactions are being processed by the certified service provider.
(b)
(1)
A person that provides a certified automated system is responsible for the proper functioning of that system and is liable to the state for underpayments of tax attributable to errors in the functioning of the certified automated system.
(2)
A seller that uses a certified automated system remains responsible and is liable to the state for reporting and remitting tax.
(c)
A seller that has a proprietary system for determining the amount of tax due on transactions and has signed an agreement establishing a performance standard for that system is liable for the failure of the system to meet the performance standard.
Acts 2001, No. 1279, § 9.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 21 - STREAMLINED SALES TAX ADMINISTRATIVE ACT (§§ 26-21-101 — 26-21-115) › Section 26-21-101 - Title

This chapter shall be known and may be cited as the "Streamlined Sales Tax Administrative Act".
Acts 2005, No. 2163, § 1.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 21 - STREAMLINED SALES TAX ADMINISTRATIVE ACT (§§ 26-21-101 — 26-21-115) › Section 26-21-102 - Legislative findings and intent

The Eighty-Fifth General Assembly finds that this state should enter into an agreement with one (1) or more states to simplify and modernize sales and use tax administration in order to substantially reduce the burden of tax compliance for all sellers and for all types of commerce.
Acts 2005, No. 2163, § 1.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 21 - STREAMLINED SALES TAX ADMINISTRATIVE ACT (§§ 26-21-101 — 26-21-115) › Section 26-21-103 - Definitions

As used in this chapter:
(1)
"Agent" means a person appointed by a seller to represent the seller before the State of Arkansas and the other states in the agreement;
(2)
"Agreement" means the multistate agreement to simplify and modernize sales and use tax administration known as the "Streamlined Sales and Use Tax Agreement";
(3)
"Certified automated system" means software that is certified under the agreement to calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to remit to the appropriate state, and maintain a record of the transaction;
(4)
"Certified service provider" means an agent certified under the agreement to perform all the seller's sales and use tax functions, other than the seller's obligation to remit tax on its own purchases;
(5)
(A)
"Entity-based exemption" means an exemption based on who purchases the product or who sells the product.
(B)
An exemption that is available to all individuals shall not be considered an entity-based exemption;
(6)
"Model 1 seller" means a seller registered under the agreement that has selected a certified service provider as its agent to perform all the seller's sales and use tax functions, other than the seller's obligation to remit tax on its own purchases;
(7)
"Model 2 seller" means a seller registered under the agreement that has selected a certified automated system to perform part of its sales and use tax functions, but retains responsibility for remitting the tax;
(8)
(A)
"Model 3 seller" means a seller registered under the agreement that has:
(i)
Sales in at least five (5) member states;
(ii)
Total annual sales revenue of at least five hundred million dollars ($500,000,000);
(iii)
A proprietary system that calculates the amount of tax due each jurisdiction; and
(iv)
Entered into a performance agreement with the member states that establishes a tax performance standard for the seller.
(B)
As used in subdivision (8)(A) of this section, "seller" includes an affiliated group of sellers using the same proprietary system;
(9)
"Model 4 seller" means a seller that is registered under the agreement and is not a model 1 seller, model 2 seller, or model 3 seller;
(10)
"Person" means an individual, trust, estate, fiduciary, partnership, limited liability company, limited liability partnership, corporation, or any other legal entity;
(11)
"Purchaser" means a person to which a sale of personal property is made or to which a service is furnished;
(12)
"Seller" means a person making sales, leases, or rentals of personal property or services;
(13)
"State" means any state of the United States, the District of Columbia, and the Commonwealth of Puerto Rico; and
(14)
"Use-based exemption" means an exemption based on a specified use of the product by the purchaser.
Acts 2005, No. 2163, § 1; 2007, No. 181, §§ 1, 2; 2011, No. 291, § 2.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 21 - STREAMLINED SALES TAX ADMINISTRATIVE ACT (§§ 26-21-101 — 26-21-115) › Section 26-21-104 - Seller registration

(a)
The Department of Finance and Administration shall participate in an online sales and use tax registration system in cooperation with the states that are members of the agreement.
(b)
The department shall not use a seller's registration with the online sales and use tax registration system as provided in subsection (a) of this section and any subsequent collection of a sales or use tax in determining whether the seller has nexus with the state for any tax at any time.
(c)
When registering, a seller may select one (1) of the following models:
(1)
Model 1 seller;
(2)
Model 2 seller;
(3)
Model 3 seller; or
(4)
Model 4 seller.
Acts 2005, No. 2163, § 1; 2007, No. 181, § 3; 2011, No. 291, § 3.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 21 - STREAMLINED SALES TAX ADMINISTRATIVE ACT (§§ 26-21-101 — 26-21-115) › Section 26-21-105 - Taxing jurisdictions

The Department of Finance and Administration shall develop a downloadable online database system to assign state and local taxing jurisdictions, boundaries, and sales and use tax rates.
Acts 2005, No. 2163, § 1; 2007, No. 181, § 4.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 21 - STREAMLINED SALES TAX ADMINISTRATIVE ACT (§§ 26-21-101 — 26-21-115) › Section 26-21-106 - Relief from certain liability

(a)
Except as provided in subsection (c) of this section, a seller or certified service provider using a database provided by the Department of Finance and Administration shall not be liable to the State of Arkansas or its local jurisdictions for charging and collecting the incorrect amount of sales or use tax if the seller or the certified service provider relied on erroneous data provided by the department on sales or use tax rates, boundaries, taxing jurisdiction assignments, or the taxability matrix.
(b)
The department shall promulgate rules to provide a purchaser relief from a sales or use tax, penalties, and interest for failing to pay the correct amount of sales or use tax if erroneous information on sales or use tax rates, boundaries, or taxing jurisdiction assignments or in the taxability matrix provided by the department has been relied on by the purchaser, the purchaser's seller, or the purchaser's certified service provider.
(c)
(1)
If the department provides an address-based boundary database for assigning taxing jurisdictions and their associated sales or use tax rates, the department may cease providing the relief from liability provided in subsections (a) and (b) of this section if the department gave the seller or the certified service provider adequate notice.
(2)
If a seller demonstrates that requiring the use of the address-based database would create an undue hardship, the department may extend the relief from liability to the seller for a designated period of time.
(d)
(1)
If the effective date of a state sales or use tax rate change is less than thirty (30) days from the enactment of the statute providing the rate change, a seller is relieved of liability for failing to collect sales or use tax at the new rate if:
(A)
The seller collected sales or use tax at the effective rate immediately preceding the change; and
(B)
The seller's failure to collect at the newly effective sales or use tax rate does not extend beyond thirty (30) days after the date of enactment of the new sales or use tax rate.
(2)
The seller is not relieved of liability if the seller fraudulently failed to collect at the new sales or use tax rate or solicited purchasers based on the immediately preceding effective sales or use tax rate.
Acts 2005, No. 2163, § 1; 2007, No. 181, § 5; 2011, No. 291, § 4.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 21 - STREAMLINED SALES TAX ADMINISTRATIVE ACT (§§ 26-21-101 — 26-21-115) › Section 26-21-107 - Administration of exemptions - Definition

(a)
The Department of Finance and Administration shall administer use-based exemptions and entity-based exemptions when practicable through a direct pay permit, an exemption certificate, or another means that does not burden sellers.
(b)
(1)
A seller that follows the exemption requirements as prescribed by the Secretary of the Department of Finance and Administration shall be relieved from any tax otherwise applicable if it is determined that the purchaser improperly claimed an exemption.
(2)
If it is determined that the purchaser improperly claimed an exemption, the department shall hold the purchaser liable for the nonpayment of tax.
(3)
The relief from liability provided in subdivision (b)(1) of this section does not apply to a seller that:
(A)
Fraudulently fails to collect the sales or use tax;
(B)
Solicits a purchaser to participate in the unlawful claim of an exemption; or
(C)
Accepts an exemption certificate from a purchaser claiming an entity-based exemption when:
(i)
The subject of the transaction sought to be covered by the exemption certificate is actually received by the purchaser at a location operated by the seller; and
(ii)
The state where that location resides provides an exemption certificate that clearly and affirmatively indicates that the claimed exemption is not available in that state.
(4)
(A)
A seller may obtain a fully completed exemption certificate or capture the relevant data elements required by the department within ninety (90) days after the date of sale.
(B)
(i)
If the seller has not obtained an exemption certificate or all relevant data elements and the department makes a request for substantiation of the exemption, the seller has one hundred twenty (120) days from the date of the request to prove by other means that the transaction was not subject to sales or use tax or to obtain in good faith a fully completed exemption certificate from the purchaser.
(ii)
As used in subdivision (b)(4)(B)(i) of this section, "good faith" means that the seller obtains a certificate that claims an exemption that:
(a)
Was statutorily available on the date of the transaction in the jurisdiction where the transaction is sourced;
(b)
Could be applicable to the item being purchased; and
(c)
Is reasonable for the purchaser's type of business.
(c)
A third party vendor may claim a resale exemption based on an exemption certificate provided by its customer or any other acceptable information available to the third party vendor evidencing qualification for a resale exemption regardless of whether the customer is registered with the department to collect and remit sales or use tax.
Amended by Act 2019, No. 910,§ 3675, eff. 7/1/2019.
Acts 2005, No. 2163, § 1; 2007, No. 181, § 6; 2011, No. 291, § 5.
Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 21 - STREAMLINED SALES TAX ADMINISTRATIVE ACT (§§ 26-21-101 — 26-21-115) › Section 26-21-108 - Returns and remittance of funds

(a)
The Secretary of the Department of Finance and Administration shall promulgate rules to provide:
(1)
An alternative method for making payments if an electronic funds transfer fails on its due date; and
(2)
A rounding algorithm for sales or use tax computation.
(b)
(1)
The Department of Finance and Administration shall develop a simplified electronic return to be used for all state and local sales and use taxes levied by the Arkansas Gross Receipts Act of 1941, §
26-52-101
et seq., and the Arkansas Compensating Tax Act of 1949, §
26-53-101
et seq.
(2)
The department shall provide a separate reporting form for any other special or miscellaneous excise taxes so as not to violate the agreement.
(3)
The department shall allow all sellers, whether or not the seller is registered under the agreement, to file a simplified electronic return.
(4)
A model 4 seller that does not have a legal requirement to register in Arkansas is not required to submit information relating to exempt sales on the simplified electronic return.
(5)
A seller that elects to file a simplified electronic return shall give at least a three-month notice of the seller's intent to discontinue filing a simplified electronic return.
(c)
The department shall allow a seller to elect to compute the sales or use tax due on a transaction on an item or an invoice basis and shall allow the rounding rule to be applied to the aggregated state and local sales or use taxes.
(d)
(1)
A seller that is registered under the agreement and indicated at the time of registration that it does not anticipate making a sale that would be sourced to Arkansas is not required to file a return.
(2)
If the seller makes a taxable sale sourced to Arkansas, the seller shall file a return on or before the twentieth day of the month following the sale.
(e)
(1)
A seller registered under the agreement that does not have a legal requirement to register in Arkansas shall be given a minimum of thirty (30) days' notice before the department establishes a tax liability based solely on the seller's failure to timely file.
(2)
However, the department may establish a tax liability based solely on a seller's failure to timely file if the seller has a history of nonfiling or late filing.
Amended by Act 2019, No. 910,§ 3676, eff. 7/1/2019.
Acts 2005, No. 2163, § 1; 2007, No. 181, § 7; 2011, No. 291, § 6.