AR HB1234

Director of Finance and Administration must determine if federal law authorizes sales tax collection from out-of-state sellers with no physical presence in Arkansas and if such collection would increase available general revenues.

Director must verify that during a six-month period, revenue from out-of-state sellers equals or exceeds 150% of sales and use tax collected on food and food ingredients.

Beginning July 1, 2013, director must make monthly determinations of whether deductions from net general revenues (including Educational Adequacy Fund, college savings bonds, higher education bonds, tourist facilities aid, desegregation expenses, and water/waste disposal bonds) have declined by $35,000,000 or more compared to the same period in the prior year.

When all conditions are met under either the out-of-state collection test or the fund deduction decline test, the state sales and use tax on food and food ingredients shall be reduced to 0% beginning the first day of the second calendar quarter that is at least 30 days after the director's determination.

Act becomes effective July 1, 2013 under emergency declaration citing unacceptable unemployment levels and need to help Arkansans afford basic necessities.