AR SB576

Repeals Arkansas Code § 26-51-201(e) regarding income tax provisions tied to sales tax collections from remote sellers without physical presence in Arkansas.

Creates an "Internet Revenue subfund" within the General Revenue Allotment Reserve Fund to receive sales and use tax revenues exceeding $2,441,100,000 in a fiscal year from specified tax codes.

Eliminates food and food ingredients sales tax when Director determines: (1) federal law authorizes remote seller tax collection, (2) collections increase net general revenues, and (3) remote seller collections equal or exceed 150% of food tax collections during a six-month period.

Maintains a separate condition allowing food tax elimination if deductions to specified funds (Educational Adequacy Fund, bonds, tourist facilities, desegregation expenses, water/pollution facilities) decline by $35,000,000 or more over six months compared to prior year.

Declares an emergency effective upon Governor approval, expiration of veto period, or veto override, citing the need to address competing state law provisions regarding anticipated additional tax revenue from remote sellers.