AR SB1185

Allows taxpayers to deduct credit card interchange fees charged by credit card processors from computed sales and use tax liability.

Deductions are limited solely to taxes due under the Arkansas Gross Receipts Act of 1941 and the Arkansas Compensating Tax Act of 1949, and cannot be applied to local sales and use taxes or Amendment 75 or Amendment 91 taxes.

Defines "credit card processor" as an entity that provides proprietary services, infrastructure, and software to route debit or credit card transaction information and data for merchants or sellers to accept electronic payment.

Defines "interchange fee" as a fee charged by a credit card processor to compensate a taxpayer for its involvement in an electronic payment transaction.