SB140 Summary

• Requires remote sellers without physical presence in Arkansas to collect and remit sales and use tax if they have gross revenue exceeding $100,000 or made at least 200 separate transactions to Arkansas purchasers in the previous or current calendar year.

• Remote sellers not meeting collection thresholds must report annually to the Department of Finance and Administration the names, addresses, and purchase amounts for all Arkansas purchasers.

• Creates an administrative injunction preventing state enforcement of collection obligations during pending declaratory judgment actions, protecting remote sellers from enforcement until constitutionality is established.

• Allows the state to bring declaratory judgment actions against remote sellers to establish validity of tax collection obligations, with circuit courts required to act expeditiously and no attorney's fees awarded.

• Effective on the first day of the second calendar month following enactment; directs the Arkansas Tax Reform and Relief Legislative Task Force to review revenues collected and recommend uses including potential income tax rate reductions.