AR SB135

Director of Department of Finance and Administration must determine if federal law authorizes collecting sales and use tax from out-of-state sellers and if doing so would increase net general revenues for the state.

Director must make monthly determinations beginning July 1, 2013, to assess whether revenues from out-of-state seller collections equal or exceed 150% of food and food ingredients sales tax collected under current law.

Director must also determine monthly whether deductions from net general revenues (for education, bonds, tourist facilities, 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, the state sales and use tax on food and food ingredients is reduced to 0% effective on the first day of the second calendar quarter that is at least 30 days following the director's determination.

Act declares an emergency based on unacceptable unemployment levels in Arkansas and becomes effective July 1, 2013.