AR HB1693

Changes the income tax rate reduction threshold from $70,000,000 to reference a new distribution formula under § 26-52-107(b)(2)(B)(iii)(b) for sales and use tax collected from sellers without physical presence in Arkansas

Establishes a two-tier distribution system for remote seller sales and use tax beginning July 1, 2018: the first $15,000,000 goes to the State Apportionment Fund as general revenues, with the remainder split 50% to the State Highway and Transportation Department Fund and 50% for income tax rate reductions

Modifies the income tax rate subject to reduction from 4.5% to 6.9% when remote seller tax revenues exceed the distribution thresholds

Requires the Director of the Department of Finance and Administration to certify available net general revenues from remote seller collections to the Governor and Office of Economic and Tax Policy

Takes effect on the first day of the calendar quarter following the bill's effective date