AR HB1388

Out-of-state sellers without physical presence in Arkansas and not collecting sales or use tax must notify Arkansas purchasers at time of purchase that tax is due and that the state requires filing a tax return, with a $5.00 penalty per failure to provide notice.

Out-of-state sellers not collecting Arkansas sales or use tax must send annual notices by January 31 to all Arkansas purchasers showing total purchase amounts, including purchase dates, amounts, categories, and tax exemption status, with a $10.00 penalty per failure.

Out-of-state sellers not collecting Arkansas sales or use tax must file annual reports by March 1 with the Director of the Department of Finance and Administration containing purchaser names, total amounts paid, and delivery/shipping addresses, with a $10.00 penalty per purchaser for failure.

Facilitators without physical presence in Arkansas and not collecting sales or use tax must notify Arkansas purchasers at time of purchase and notify sellers that tax applies, and must file annual reports by March 1 showing total amounts paid by Arkansas purchasers to each seller, with penalties of $5.00 and $10.00 respectively for failures.

The requirement does not apply to sellers or facilitators that collect and remit Arkansas sales and use tax, and the Director of Finance and Administration shall promulgate rules for implementation effective January 1, 2018.