AR SB731

Requires vendors collecting Arkansas compensating use tax with average net sales exceeding $200,000 per month to prepay using electronic funds transfer.

Establishes two payment options: (1) paying 40% of estimated monthly tax on the 12th and 24th of each month, or (2) paying at least 80% by the 24th of each month, with remaining balance due by the 20th of the following month.

Imposes a 5% penalty for failure to pay prepayments when due, with an exception if a taxpayer proves more than 20% of compensating use tax liability arose from sales after the 24th of the current month.

Requires electronic funds transfers or reports with due dates falling on weekends or federal holidays to be submitted on the next business day.

Becomes effective July 1, 2011, under emergency clause declaring the requirement necessary for public safety.