Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › GROSS RECEIPTS TAX RULES › Rule 006.05.06-005-GR-79 - PERSONS LIABLE FOR TAX AND EXEMPTIONS

Current through Register Vol. 49, No. 6, June, 2024
A. The tax must be collected, reported, and
				remitted by the seller of tangible personal property; the seller or collector
				of admissions to places of amusement, recreational, or athletic events; the
				seller of privileges of access to, or the use of amusement, entertainment,
				athletic, or recreational facilities; and by any other person furnishing any
				service subject to the tax.
B.
				CORPORATIONS. If the seller of tangible personal property or taxable services
				is a corporation and the corporation fails to collect, truthfully account for,
				and remit the proper amount of tax, interest, and penalty, then the officers or
				employees of the corporation charged with those duties shall also be
				personally, jointly, and severally liable for a penalty equal to the amount of
				the tax.
C. LIABILITY. The sales
				tax liability for all sales of tangible personal property or taxable services
				is upon the seller unless the purchaser claims an exemption. (See GR-79(E) and
				GR-79(F).)
D. RELIEF FROM CERTAIN
				LIABILITY.
1. Sellers. Except as provided in
				GR-79(D)(3), a seller or certified service provider using a database provided
				by the Department 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, or taxing
				jurisdiction assignments, or the taxability matrix, which may be viewed on the
				Department's website at:
www.state.ar.us/salestax
.
2. Purchasers. Except as provided in
				GR-79(D)(3), a purchaser may be relieved of liability for failing to pay the
				correct amount of sales or use tax.
a. Relief
				from liability for tax and interest. Except where prohibited by the Arkansas
				Constitution, a purchaser will be relieved from liability for tax and interest
				owed for having failed to pay the correct amount of sales or use tax as
				described in GR-79(D)(2) if this state erroneously classified terms in the
				library of definitions section of the taxability matrix as "taxable" or
				"exempt", "included in the sales price" or "excluded in the sales price", or
				"included in the definition" or "excluded in the definition".
b. Relief from liability for penalty. A
				purchaser will be relieved from liability for penalty owed for having failed to
				pay the correct amount of sale or use tax in the following circumstances:
(1) A purchaser's seller or certified service
				provider relied on erroneous data provided by this state on tax rates,
				boundaries, taxing jurisdiction assignments, or in the taxability
				matrix;
(2) A purchaser holding a
				direct pay permit relied on erroneous data provided by this state on tax rates,
				boundaries, taxing jurisdiction assignments, or in the taxability matrix;
				or
(3) A purchaser relied on
				erroneous data provided by this state in the taxability matrix.
(4) For purposes of this rule, the term
				"penalty" means an amount imposed for noncompliance that is not fraudulent,
				willful, or intentional which is in addition to the correct amount of sales or
				use tax and interest.
3. 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 GR-79(D)(1) and GR-79(D)(2) if the Department
				gave adequate notice. If it is demonstrated 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.
4. The seller, certified
				service provider, or purchaser must maintain proper records pertaining to the
				erroneous information provided at the time of the transaction and provide them
				to the Department when requested.