11/21/2018 Arkansas v2018.0 1/23 Arkansas Certificate of Compliance version 2018.0 Publish Date: July 31, 2018 at 4:18:52 PM Effective Date: August 1, 2018 Revised Date: July 31, 2018 Approved By: Larry Walther Title: Director, Arkansas Department of Finance and Administration Submitted By: Chris McNeal Phone: 501-682-7030 As the chief executive of the state’s tax agency, I declare that this Certificate of Compliance is true, correct, and complete to the best of my knowledge and belief. Changes were made to the following areas of this document (indicated by a " "): Answers Laws or Rules Comment (Notes) Effective/Conforming Dates Certificate’s Revised Date Section Number of changed items (may include a brief description of the change): 318095, 328060, all of Section 332, the citations in the administrative definitions, PD022 (diapers), PD160-190 (SDP), PD220 (candy), and PD270 (soft drinks) Each item in this Certificate of Compliance is an administrative practice, process, or definition contained in the Streamlined Sales and Use Tax Agreement (SSUTA) as amended through May 3, 2018 and related rules and appendices. This certificate indicates if the state laws, regulations or administrative practices follow the administrative practice, process, or definition. Any exception or further explanation is listed in the notes column. SECTION TOPIC DOCUMENT COMMENTS/ REFERENCE TO CRIC INTERPRETATIONS DESCRIPTION Is this requirement met by law, regulation or administrative practice (Yes or No). Enter N/A when not applicable. If so, provide the citation for legal authority (statute, case, regulation, etc.) For SST conforming changes, provide effective dates. Notes (e.g., administrative practices, noncompliance explanations, etc.) Section 301 State level administration 301010 Does the state provide state level administration of state and local sales and use taxes? Yes A.C.A. 26- 18-301, 26- 52-105, 26- 53-103, 26- 73-105, 26- 74-212, 26- 74-312, 26- 74-407, 26- 74-608, 26- 75-214, 26- 75-409, 26- 75-505 301020 Are sellers and purchasers only required to register with, file returns and remit funds to a state-level authority? Yes A.C.A. 26- 52-202 (Permit), 26-52-501 (Return), 26-53-121 (Out-of- state reg), 26-53-125 (Return), 26-74-312, 26-74-608, 26-75-212, 26-75-312, 26-75-406, 26-81-110 301030 Does the state provide for the collection of any local taxes and distribute them Yes A.C.A. 26- 73-105(a), 26-18-308
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11/21/2018 Arkansas v2018.0
1/23
Arkansas Certificate of Complianceversion 2018.0
Publish Date: July 31, 2018 at 4:18:52 PM
Effective Date: August 1, 2018
Revised Date: July 31, 2018
Approved By: Larry Walther
Title: Director, Arkansas Department of Finance and Administration
Submitted By: Chris McNeal
Phone: 501-682-7030
As the chief executive of the state’s tax agency, I declare that this Certificate of Compliance is true, correct, and complete to the best of myknowledge and belief.
Changes were made to the following areas of this document (indicated by a "✓"):
✓ Answers ✓ Laws or Rules ✓ Comment (Notes)
✓ Effective/Conforming Dates ✓ Certificate’s Revised Date
Section Number of changed items (may include a brief description of the change): 318095, 328060, all of Section 332, the citations in the administrative definitions, PD022 (diapers), PD160-190 (SDP), PD220 (candy), andPD270 (soft drinks)
Each item in this Certificate of Compliance is an administrative practice, process, or definition contained in the Streamlined Sales and UseTax Agreement (SSUTA) as amended through May 3, 2018 and related rules and appendices.
This certificate indicates if the state laws, regulations or administrative practices follow the administrative practice, process, or definition. Anyexception or further explanation is listed in the notes column.
Are audits conducted onlyby the state or by othersauthorized by the state toconduct an audit thatincludes both state andlocal taxes?
Yes A.C.A. 26-18-305
Local jurisdictions do not perform audits. All functions incidental to theadministration, collection, enforcement, and operation of local sales and usetaxes are performed at the state level. See citations concerning state leveladministration.
301050
Are local jurisdictionsprohibited from conductingindependent sales or usetax audits of sellers andpurchasers except whereauthorized by state law toconduct an audit for thestate and all localjurisdictions, subject to thesame confidentiality andother protections and thesame administrative andappeal proceduresgranted audits conductedby the state?
Yes A.C.A. 26-18-305
All functions incidental to the administration, collection, enforcement, andoperation of local sales and use taxes are performed at the state level. Localjurisdictions do not have the authority to perform audits.
Section302
State and local taxbase
302010
Is the tax base for localjurisdictions identical tothe state tax base,excluding (1) federalprohibitions; (2) motorvehicles, aircraft,watercraft, modularhomes, manufacturedhomes or mobile homes;(3) fuels used to powermotor vehicles, aircraft,locomotives, or watercraft;(4) electricity, pipednatural or artificial gas orother fuels delivered bythe seller; and (5) energyas defined in Section302(4)?
Local taxes apply to the first $2,500 of gross receipts, gross proceeds, or salesprice.
302030
Does the tax base differfor state and localjurisdictions for fuels usedto power motor vehicles,aircraft, locomotives orwatercraft?
No A.C.A. 26-52-401(11)
302040
Does the tax base differfor state and localjurisdictions for electricity,piped natural or artificialgas or other fuelsdelivered by the seller?
No GR-6
302050
Does the tax base differfor state and localjurisdictions for "energy"as defined in Section302(4)?
No
Section303 Seller registration
303010
Is the state capable ofpulling registrationinformation from thecentral registrationsystem?
Yes A.C.A. 26-21-104
303020Does the state exempt aseller without a legalobligation to register frompaying registration fees?
YesA.C.A. 26-52-203, 26-53-121
303030Does the state allow aseller to register on thecentral registration systemwithout a signature?
YesA.C.A. 26-21-104, UT-6
303040 Does the state allow anagent to register a selleron the central registrationsystem?
Yes A.C.A. 26-21-104, UT-6
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Section304
Notice for state taxchanges
304010Failure to meetthese does not takea state out ofcompliance.
A1. Does the state providesellers with as muchadvance notice aspracticable of a ratechange?
Yes A.C.A. 26-52-108
304020A2. Does the state limitthe effective date of a ratechange to the first day of acalendar quarter?
No No current provisions in Arkansas Constitution or Arkansas law limit theLegislature on effective dates for changes in tax code
304030
A3. Does the state notifysellers of legislativechanges in the tax baseand amendments to salesand use tax rules andregulations?
YesA.C.A. 25-15-204, 26-52-108
304040
C. Does the state relievethe seller of liability forfailing to collect tax at thenew rate if the state fails toprovide for at least thirtydays between theenactment of the statuteproviding for a ratechange and the effectivedate of such rate change if(1) the seller collected taxat the immediatelypreceding effective rateand (2) the seller's failureto collect at the newlyeffective rate does notextend beyond thirty daysafter the date ofenactment of the newrate? Note: This liabilityrelief does not apply if thestate establishes the sellerfraudulently failed tocollect tax at the new rateor solicits purchasersbased on the immediatelypreceding rate.
YesA.C.A. 26-21-106,GR-79(D)(1)
Section305
Local rate andboundary change
305010
Does the state have localjurisdictions that levy asales or use tax? If yes,answer the followingquestions.
Yes
305020
A. Does the state limit theeffective date of local ratechanges to the first day ofa calendar quarter after aminimum of 60 daysnotice?
B. Does the state limit theeffective date of local ratechanges from catalogsales wherein thepurchaser computed thetax based on local taxrates published in thecatalog only on the firstday of a calendar quarterafter a minimum of 120days notice?
C. Does the state limitlocal boundary changesfor the purposes of salesand use taxes to the firstday of calendar quarterafter a minimum of 60days notice?
F1. Does the state provideand maintain a databasethat assigns each five digitand nine digit zip codewithin the member state tothe proper tax rate andjurisdiction?
Yes
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305080 F2. Does the state applythe lowest combined taxrate imposed in a zip codeif the area in that zip codeincludes more than onetax rate?
Yes
305090
G. Does the state provideaddress-based boundarydatabase records forassigning taxingjurisdictions and theirassociated rates? If yes,answer the followingquestions.
No Arkansas converts addresses to applicable zip codes.
3051001. Are the records in thesame format as databaserecords in F?
NA
305110
2. Do the records meet therequirements of theFederal MobileTelecommunicationsSourcing Act?
NA
305120 SSTGB Rule 502
H. If the state has met therequirements ofsubsection (F) and electedto certify vendor providedaddress-based databasesfor assigning tax rates andjurisdiction:
NA Arkansas has not elected to certify vendor provided address-based databases
305130
1. Are those databases inthe same format as thedatabase recordsapproved pursuant to (G)of this section?
NA
305140
2. Do those databasesmeet the requirements ofthe Federal MobileTelecommunicationsSourcing Act (4 U.S.C.A.Sec. 119 (a))?
NA
Section306
Relief from certainliability
306010
Does the state relievesellers and CSPs fromliability to the state and itslocal jurisdictions forcollecting the incorrectamount of tax because ofreliance on state provideddata on rates, boundaries,and jurisdictionassignments?
Yes A.C.A. 26-21-106,GR-79D
Section307
Databaserequirements andexceptions
307010A. Does the state providea database per Section305, in downloadableformat?
Yes
307020
If the state designates avendor to provide theSection 305 databasedoes the vendor'sdatabase meet therequirements of Sections305, 306 and 307 and isprovided at no cost to theuser of the database?
NA
Section308
State and local taxrates
308010
A1. Does the state havemore than one state salesand use tax rate on itemsof personal property orservices other than (1) fuelused to power motorvehicles, aircraft,locomotives, or watercraft;(2) electricity, pipednatural or artificial gas, orother fuels delivered bythe seller; (3) the retailsale or transfer of motorvehicles, aircraft,watercraft, modularhomes, manufacturedhomes, or mobile homes;or (4) energy as defined inSection 302(4)?
Yes
A.C.A. 26-52-317,A.C.A. 26-52-319(a)(1)
There is a lower state rate of tax on food and food ingredients. There is a lowerstate rate of tax on the sale of natural gas and electricity to a manufacturer foruse directly in the actual manufacturing process.
308020
A2. Does the state have asingle additional tax rateon food and foodingredients and drugs asdefined by state lawpursuant to theAgreement?
Yes A.C.A. 26-52-317
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308030 B1. If the state has localjurisdictions with a sales oruse tax, does any localjurisdiction have morethan one sales tax rate orone use tax rate?
No A.C.A. 14-164-333,26-74-312,26-75-212,26-75-312,26-75-406
308040
B2. If the state has localjurisdictions with a salesand use tax are the localsales and use tax ratesidentical?
A. Does the state source aretail sale, excluding leaseor rental, of a product asfollows:
310010CRICINTERPRETIVEOPINION 2007-2
1. If received at businesslocation of seller, thensourced to that location?
YesA.C.A. 26-52-521 (b)(1)
3100202. If not received atbusiness location of seller,then sourced to location ofreceipt?
YesA.C.A. 26-52-521(b)(2)
310030
3. If subsections 1 & 2 donot apply, then sourced toaddress of purchaser inbusiness records of sellerthat are maintained inordinary course of seller'sbusiness?
YesA.C.A. 26-52-521 (b)(3)
310040
4. If subsections 1, 2 & 3do not apply, then sourcedto address of purchaserobtained duringconsummation of sale,including address ofpurchaser's paymentinstrument, if no otheraddress is available?
YesA.C.A. 26-52-521 (b)(4)
310050
5. If subsections 1, 2, 3 &4 do not apply, includingthe circumstance in whichthe seller is withoutsufficient information toapply the previous rules,then sourced to locationfrom which tangiblepersonal property wasshipped, from which digitalgood or computer softwaredelivered electronicallywas first available fortransmission by seller, orfrom which service wasprovided.
YesA.C.A. 26-52-521 (b)(5)
B. Does the state source alease or rental of tangiblepersonal property asfollows:
310060
1. If recurring periodicpayments, the firstperiodic payment issourced the same as aretail sale. Subsequentpayments are sourced tothe primary propertylocation for each periodcovered by the payment?
YesA.C.A. 26-52-521 (c)(1)
3100702. If no recurring periodicpayments, then sourced inaccordance with rules ofretail sale?
YesA.C.A. 26-52-521 (c)(2)
CRICINTERPRETIVEOPINION 2006-3
C. Does the state source alease or rental of motorvehicles, trailers, semi-trailers, or aircraft that donot qualify astransportation equipmentas follows:
3100801. If recurring periodicpayments, then sourced toprimary property location?
YesA.C.A. 26-52-521(d)(1)
3100902. If no recurring periodicpayments, then sourced inaccordance with rules ofretail sale?
YesA.C.A. 26-52-521 (d)(2)
310100
D. Does the state sourcethe retail sale, includinglease or rental, oftransportation equipmentin accordance with rulesfor retail sale?
YesA.C.A. 26-52-521(e)(1)
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310110 1. Does the state definetransportation equipmentpursuant to in Section310, subsection D?
Yes A.C.A. 26-52-521(e)(2), GR-3(S)
Section310.1
Election for Origin-Based sourcing
Effective January 1,2010
310500CRICINTERPRETIVEOPINION 2010-1
Has the state elected tosource the retail sale,excluding lease or rental,of tangible personalproperty and digital goodson where the order isreceived?
No
310510Does the state complywith all the provisions of310.1 B and C?
NA
Section311
General sourcingdefinitions
311010SSTGB RULES311.1, 311.2 and311.3
For the purposes ofSection 310, subsection(A), does the state definethe terms "receive" and"receipt" to mean: takingpossession of tangiblepersonal property, makingfirst use of services, ortaking possession ormaking first use of digitalgoods, whichever comesfirst? Note: The terms"receive" and "receipt" donot include possession bya shipping company onbehalf of the purchaser.
Yes A.C.A. 26-52-521(f)
Section313
Direct mailsourcing
313010 SSTGB RULES313.1
A 2. For advertising andpromotional Direct Mail,does the state provide thatupon receipt of a directmail form or ExemptionCertificate claiming directmail, or other writtenstatement approved by thestate, the seller, in theabsence of bad faith, isrelieved of all obligationsto collect, pay or remit thetax to which the permitpertains?
YesA.C.A. 26-52-522 (g)(2
313020
A 3. Does the stateprovide that upon receiptof jurisdictionalinformation, the seller shallcollect tax according topurchaser's submittedinformation and in theabsence of bad faith,seller is relieved of furtherliability?
YesA.C.A. 26-52-522(g)(1)
313030
A 4. For advertising andpromotional Direct Mail,does the state require theseller to collect taxpursuant to Section 310(A)(5) if the purchaserdoes not provide a directpay permit, ExemptionCertificate claiming directmail, or jurisdictionalinformation?
YesA.C.A. 26-52-522 (c)(1)
313040
B 1. For other Direct Mail,does the state require theseller to collect taxpursuant to Section 310(A)(3) if the purchaserdoes not provide a directpay permit or anExemption Certificateclaiming direct mail?
Yes A.C.A. 26-52-522(d)
313050
B 3.For other Direct maildoes the state provide thatupon receipt of a directpay permit, ExemptionCertificate claiming directmail, or other writtenstatement approved by thestate, the seller, in theabsence of bad faith, isrelieved of all obligationsto collect, pay or remit thetax?
YesA.C.A. 26-52-522 (g)(2)
Section313.1
Origin-based directmail sourcing
313510A. Has the state adoptedthe origin-based directmail sourcing?
No
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Section314
Telecom sourcingrule
314010 SSTGB RULE 314.1
A. Except as required insubsection C below, doesthe state sourcetelecommunicationservices sold on a call-by-call basis to each level oftaxing jurisdiction wherethe call originates andterminates in thatjurisdiction or each level oftaxing jurisdiction wherethe call either originates orterminates and in whichservice address islocated?
YesA.C.A. 26-52-315(d)(1)
314020
B. Except as required insubsection C below, doesthe state sourcetelecommunication serviceto the customer's place ofprimary use if sold on abasis other than call-by-call basis?
YesA.C.A. 26-52-315(d)(2)
314030
C1. Does the state sourcethe sale of mobiletelecommunicationservice, other than air-to-ground radiotelephoneservice and prepaid callingservice, to customer'splace of primary use asrequired under MobileTelecommunicationsSourcing Act?
YesA.C.A. 26-52-315(d)(3)(A)
314040
C2. Does the state sourcethe sale of post-paidcalling service to theorigination point of thetelecommunication signalas first identified by eitherthe seller'stelecommunication systemor information received bythe seller from its serviceprovider, where systemused to transport signals isnot that of the seller?
YesA.C.A. 26-52-315(d)(3)(B)
314050
C3. Does the state sourcethe sale of prepaidwireless calling serviceand prepaid callingservices in accordancewith Section 310 of theAgreement, including theoption of the locationassociated with the mobiletelephone number forprepaid wireless callingservice?
YesA.C.A. 26-52-315(d)(3)( C)
314060
C4a. For the sale ofprivate communicationservice, does the statesource a separate chargerelated to a customerchannel termination pointto each level of jurisdictionin which such customerchannel termination pointis located?
YesA.C.A. 26-52-315(d)(3)(D)(i)
314070
C4b. For the sale ofprivate communicationservice, does the statesource to the jurisdiction inwhich the customerchannel termination pointsare located when allcustomer terminationpoints are located entirelywithin one jurisdiction orlevels of jurisdictions?
YesA.C.A. 26-52-315(d)(3)(D)(ii)
314080
C4c. For the sale ofprivate communicationservice, does the statesource fifty percent ineach level of jurisdiction inwhich the customerchannel termination pointsare located when servicefor segments of a channelbetween two customerchannel termination pointslocated in differentjurisdictions and whichsegment of channel areseparately charged ?
YesA.C.A. 26-52-315(d)(3)(D)(iii)
314090 C4d. For the sale ofprivate communicationservice, does the statesource to each jurisdictionbased on the percentagedetermined by dividing the
Yes A.C.A. 26-52-315(d)(3)(D)(iv)
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number of customerchannel termination pointsin such jurisdiction by thetotal number of customerchannel termination pointswhen service for segmentsof a channel located inmore than one jurisdictionor levels of jurisdiction andwhich segments are notseparately billed?
314100D. Does the state sourcethe sale of Internet accessservice to the customer'splace of primary use?
NA
314110E. Does the state sourcethe sale of an ancillaryservice to the customer'splace of primary use?
YesA.C.A. 26-52-315(d)(4)
Section315
Telecom sourcingdefinitions
Does the state define thefollowing terms in sourcingtelecommunications:
315010 A. Air-to-groundradiotelephone service? Yes
A.C.A. 26-52-315(e)(1)
315020 B. Ancillary services? YesA.C.A. 26-52-315(e)(2)
315030 C. Call-by-call basis? YesA.C.A. 26-52-315(e)(3)
315040 D. Communicationschannel? Yes
A.C.A. 26-52-315(e)(4)
315050 E. Customer? YesA.C.A. 26-52-315(e)(5)
315060 F. Customer channeltermination point? Yes
A.C.A. 26-52-315(e)(6)
315070 G. End user? YesA.C.A. 26-52-315(e)(7)
315080 H. Home service provider? YesA.C.A. 26-52-315(e)(8)
315090I. Mobiletelecommunicationsservice?
YesA.C.A. 26-52-315(e)(12)
315100 J. Place of primary use? YesA.C.A. 26-52-315(e)(13)
315110 K. Post-paid callingservice? Yes
A.C.A. 26-52-315(e)(14)
315120 L. Prepaid calling service? YesA.C.A. 26-52-314, 26-52-315(e)(15)
315130 M. Prepaid wireless callingservice? Yes
A.C.A. 26-52-314, 26-52-315(e)(16)
315140 N. Private communicationservice? Yes
A.C.A. 26-52-315(e)(17)
315150 O. Service address? YesA.C.A. 26-52-315(e)(18)
Section316
Enactment ofExemptions
316010
Product-basedexemptions. If the stateexempts a product that isdefined in Part II of theLibrary of Definitions doesthe state do so consistentwith Part II and Section327?
Yes
316020 Product-basedexemptions. Can the stateconfirm that where theAgreement has adefinition for a product thatthe state exempts, the
Yes
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state does not exemptspecific items includedwithin that productdefinition unless thedefinition sets out anexclusion for such item.
316030
Entity and Use-basedexemptions. If the statehas enacted an entity oruse-based exemption for aproduct that is defined inPart II of the Library ofDefinitions does the statedo so consistent with PartII and Section 327?
Yes
316040
Use-based exemptions.Can the state confirm thatany use-based exemptionfor an item does notconstitute a product-basedexemption for a productdefined in the Agreementthat includes such item?
Yes
Section317
Administration ofexemptions
SSTGB RULE 317.1A. Does the state providefor the following in regardto purchasers claimingexemption:
317010
1. Seller shall obtainidentifying informationfrom purchaser andreason for claimingexemption?
YesGR-79(E),A.C.A. 26-52-517, 26-21-107
3170202. Purchaser is notrequired to providesignature, unless paperexemption certificate?
Yes GR-79(E)
3170303. Seller shall usestandard form for claimingexemption electronically?
Yes GR-79(E)
3170404. Seller shall obtain sameinformation for proofregardless of medium?
Yes GR-79(E)
317050
5. Does the state issueidentification numbers toexempt purchasers thatmust be presented tosellers?
No
3170606. Seller shall maintainrecords of exempttransaction and provide tostate when requested?
YesA.C.A. 26-21-107(b)(4)(B)
317070
The GoverningBoard has notdefined "does notburden sellers." Theburden is on eachstate to prove thatsomething otherthan a direct-paypermit or exemptioncertificate meets thisprovision.
7. Does the stateadminister use-based andentity-based exemptionswhen practicable througha direct pay permit, anexemption certificate, oranother means that doesnot burden sellers.
YesA.C.A. 26-21-107, 26-52-509,GR-79(F)
317080 SSTGB RULE 317.2
8. In the case of dropshipment sales, does thestate allow a third partyvendor to claim a resaleexemption based on anexemption certificateprovided by itscustomer/re-seller or anyother acceptableinformation available tothe third party vendorevidencing qualification fora resale exemption,regardless of whether thecustomer/re-seller isregistered to collect andremit sales and use tax inthe state where the sale issourced?
Yes GR-5(D),GR-53(H)
317090
B. Does the state relievethe seller from any tax if itis determined that thepurchaser improperlyclaimed an exemption andhold the purchaser liablefor the tax, assuming theexceptions in the section?
YesA.C.A. 26-21-107, 26-52-517(e),GR-79(E)
317100 C. Does the state relieve aseller of the tax otherwiseapplicable if the sellerobtains a fully completedexemption certificate orcaptures the relevant data
Yes A.C.A. 26-21-107, 26-52-517(g),GR-79(E)
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elements required underthe Agreement within 90days subsequent to thedate of sale?
317110CRICINTERPRETIVEOPINION 2011-3
D.1. Does the stateprovide the seller with 120days subsequent to arequest for substantiationby a state, if the seller hasnot obtained an exemptioncertificate as provided inC, to obtain an exemptioncertificate or otherinformation establishingthe transaction was notsubject to tax?
Yes
A.C.A. 26-21-107(4)(B), 26-52-517(g), GR-79(E
317120
D.2. Subsequent to the90-day period provided inC, does the state relieve aseller of the tax forexemption certificatestaken in good faith orother informationestablishing thetransaction was notsubject to tax that areobtained by the seller asprovided in D.1.?
Yes
A.C.A. 26-21-107(b)(1), 26-52-517(g), GR-79(E)
317130G. Does the state post theStreamlined ExemptionCertificate on its website?
The answer to thisquestion does notimpact certification,but it would provideuseful information totaxpayers.
2. Does the state requirepurchasers to updateexemption certificateinformation or to reapplywith the state to claimcertain exemption?
No
317150
3. Does the state relieve aseller of tax if the sellerobtains a blanketexemption certificate for apurchaser with which theseller has a recurringbusiness relationship?
YesA.C.A. 26-52-517(d),GR-79(F)
Section318 Uniform tax returns
318010
A. Does the state requirethe filing of only one taxreturn for each taxingperiod for each seller forthe state and all localjurisdictions?
Yes
A.C.A. 26-53-125(a),GR-77(A),26-52-501(b)(3)
318020
B.1. Does the staterequire that returns befiled no sooner than thetwentieth day of the monthfollowing the month inwhich the transactionoccurred?
YesA.C.A. 26-52-501(b)(1), 26-53-125, GR-77
318030
B.2. Does the stateprovide when the due datefor a return falls on aSaturday or Sunday orlegal holiday, the returnshall be due the nextsucceeding business day.
YesA.C.A. 26-52-512 (c),26-53-125(e)
318040C.1. Does the state acceptthe SER approved by thegoverning board?
Yes A.C.A. 26-21-108
318050
C 2. Does the staterequire the submission ofexemption information onpart 2 of the SER,excluding Model 4 sellerswithout a legalrequirement to register?
No Arkansas law provides that the seller maintain the exemption forms with hisrecords.
318060
C.3. Does the state allowModel 1, Model 2, andModel 3 sellers to submitits sales and use taxreturns in a simplifiedformat that does notinclude more data fieldsthan permitted by thegoverning board?
Yes A.C.A. 26-21-108 All sellers are allowed to file returns in a simplified format.
318070C 3.c. Does the state allowa model 4 seller to file anSER?
YesA.C.A. 26-21-108(b)(3)
318080 Effective 1-1-2013C.3.d. Does the stateallow sellers not registeredunder the Agreement tofile an SER?
YesA.C.A. 26-21-108(b)(3)
318090 D. Does the state requirethe filing of a return from aseller who registers underthe Agreement and
No A.C.A. 26-21-108(d)(1)
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indicates that it anticipatesmaking no sales thatwould be sourced to thatstate?
318095 Required by 1-1-2019
E. Has the state adoptedwebservices as thestandardized transmissionprocess that allows forreceipt of uniform taxreturns and otherformatted informationapproved by theGoverning Board?
Yes
318100
F. Does the state givenotice to a sellerregistered under theAgreement, that has nolegal requirement toregister in a state, whofailed to file a return, aminimum 30 days noticeprior to establishing aliability amount for taxesbased solely on theseller's failure to timelyfile?
YesA.C.A. 26-21-108(e)(1)
Section319
Uniform rules forremittance of funds
319010A1. Does the state requiremore than one remittancefor each return?
Yes
319020
A2. If the state requiresmore than one remittancefor each return does it doso only if: (1) sellercollects more than$30,000 in sales and usetaxes in state duringpreceding year, (2) anyadditional remittance to bedetermined through acalculation method, and(3) the seller is notrequired to file additionalreturn?
Yes A.C.A. 26-52-512
319030C. Does the state allowpayment to be made byboth ACH Credit & ACHDebit?
YesA.C.A. 26-19-101,GR-77
319040
D. Does the state providean alternative method for"same day" payment ifelectronic fund transferfails (electronic check orFed Wire)?
YesA.C.A. 26-21-108,GR-77(F)(3)
319050
E 1. Does the stateprovide that if a due datefalls on a Saturday,Sunday or a legal holidayin the state, the taxes aredue on the nextsucceeding business day?
YesA.C.A. 26-52-512 (c),26-53-125(e)
319060
E 2. Does the stateprovide that if a due datefalls on a day the FederalReserve Bank is closed,the taxes are due on thenext day the FederalReserve Bank is open?
F. Does the state requirethat any data thataccompanies a remittanceto be formatted usinguniform tax type andpayment type codes?
Yes A.C.A. 26-21-108
Section320
Uniform rules forrecovery of baddebts
320010A. Does the state allow aseller to take a deductionfrom taxable sales for baddebts?
YesA.C.A. 26-52-309, 26-53-111
320020 B. Does the state use thedefinition of bad debtfound in 26 U.S.C. Sec.166 as basis forcalculating a bad debtrecovery, excluding:financing charges orinterest; sales or use taxescharged on purchaseprice; uncollectibleamounts on property thatremains in possession ofseller until full price paid;expenses incurred inattempt to collect debt,
Yes A.C.A. 26-52-309, 26-53-111
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and repossessedproperty?
320030
C1. Does the state allowbad debts to be deductedon the return for the periodduring which the bad debtis written off asuncollectible on and iseligible be deducted forfederal income taxpurposes?
YesA.C.A. 26-52-309, 26-53-111
320040
C2. If the seller is notrequired to file a federalincome tax return does thestate allow bad debts tobe deducted on the returnfor the period during whichthe bad debt is written offas uncollectible on andwould be eligible bededucted for federalincome tax purposes if theseller was required to file afederal return?
YesA.C.A. 26-52-309, 26-53-111
320050
D. Does the state requirethat, if a deduction istaken for a bad debt andthe debt is subsequentlycollected in whole or inpart, the tax on theamount so collected mustbe paid and reported onthe return files for theperiod in which thecollection is made?
YesA.C.A. 26-52-309, 26-53-111
320060
E. Does the state providethat, when the amount of abad debt exceeds taxablesales for period whenwritten off, a refund claimmay be filed within theapplicable statute oflimitations (measured fromdue date of return onwhich bad debt could firstbe claimed)?
YesA.C.A. 26-52-309, 26-53-111
320070
F. Does the state providethat if filing responsibilitiesare assumed by a CSP,the state allows the CSPto claim, on behalf of theseller, any bad debtallowance?
YesA.C.A. 26-52-309, 26-53-111
320080
G. Does the state providethat, for purposes ofreporting payment onpreviously claimed baddebt, any payments madeare applied firstproportionately to taxableprice of property or serviceand sales tax thereon, andsecondly to interest,service charges, and anyother charges?
YesA.C.A. 26-52-309, 26-53-111
320090
H. Does the state permitallocation of a bad debtamong states if the booksand records of a the partysupport allocation amongstates?
YesA.C.A. 26-52-309, 26-53-111
Section321
Confidentiality andprivacy protectionsunder Model 1
321010
E. Does the state providepublic notification toconsumers, includingexempt purchasers, ofstate's practices relating tocollection, use andretention of personallyidentifiable information?
Yes
A.C.A. 26-18-302, 26-18-303, 26-20-106, 26-21-115
321020
F. Does the state providethat when any personallyidentifiable information isno longer required forpurposes in Section 321subsection (D)(4), suchinformation shall no longerbe retained by state?
Yes
A.C.A. 26-18-301 etseq., 26-20-106, 26-21-115
321030 G. Does the state providethat when personallyidentifiable informationregarding an individual isretained by or on behalf ofstate, the state shallprovide reasonableaccess to information bysuch individual and a rightto correct inaccurateinformation?
Yes A.C.A. 26-18-301 etseq., 26-20-106, 26-21-115
Information may be corrected through the central registration system, as wellas through forms available on the Department's website.
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321040
H. Does the state providethat if anyone other than amember state or personauthorized by state law orthe Agreement seeks todiscover personallyidentifiable information,state makes reasonableand timely effort to notifythe individual of therequest?
YesA.C.A. 26-18-303, 26-21-115
Arkansas cannot release such information without the permission of thesubject.
321050
I. Is the state's privacypolicy subject toenforcement by state's AGor other appropriategovernment authority?
YesA.C.A. 26-18-303(f),26-21-115
Section322 Sales tax holidays
322010 A. Does the state havesales tax holidays? Yes
A.C.A. 26-52-444,Rule 2012-2
322020
1. If a state has a holiday,does the state limit theholiday exemption to itemsthat are specificallydefined in Part II or PartIII(B) of the Library ofDefinitions and apply theexemptions uniformly tostate and local sales anduse taxes?
YesA.C.A. 26-52-444,Rule 2012-2
322030
2. If a state has a holiday,does the state providenotice of the holiday atleast 60 days prior to firstday of the calendar monthin which the holiday willbegin?
YesA.C.A. 26-52-444,Rule 2012-2
3220403. If a state has a holiday,does the state apply anentity or use basedexemption to items?
No
322050
3. If a state has a holiday,does the state limit aproduct based exemptionto items purchased forpersonal or non-businessuse?
No
322060
4. If a state has a holiday,does the state require aseller to obtain anexemption certificate orother certification from apurchaser for items to beexempted during a salestax holiday?
No
322070
B1. If a state's holidayincludes a price threshold,does the state provide thatthe threshold includes onlyitems priced belowthreshold?
YesA.C.A. 26-52-444,Rule 2012-2
The threshold for clothing is $100; the threshold for clothing accessory is $50.
322080
B2. If a state's holidayincludes a price threshold,does the state exemptonly a portion of the priceof an individual itemduring holiday?
NoA.C.A. 26-52-444,Rule 2012-2
The amount of sales tax due depends on the price paid for each item sold. Ifan item's price exceeds the threshold, no portion is exempt from tax.
322090C. Does the state meeteach of the proceduralrequirements for holidays?
322130 4. Splitting of itemsnormally sold together? Yes Rule 2012-
2
322140 5. Rain checks? Yes Rule 2012-2
322150 6. Exchanges? Yes Rule 2012-2
322160 7. Delivery charges? Yes Rule 2012-2
322170 8. Order date and back Yes Rule 2012-
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orders? 2
322180 9. Returns? Yes Rule 2012-2
322190 10. Different time zones? Yes Rule 2012-2
Section323
Caps andthresholds
323010
1. Does the state haveany caps or thresholds onthe application of rates orexemptions based on thevalue of a transaction oritem other than clothing,motor vehicles, aircraft,watercraft, modularhomes, manufacturedhomes or mobile homes orinstances where theburden of administrationhas been shifted from theretailer?
No
323020
2. Does the state haveany caps that are basedon application of ratesunless the application ofrates are administered in amanner that places noadditional burden onretailer?
NA
323030
B. Do local jurisdictionswithin the state that levysales or use tax have capsor thresholds onapplication of rates orexemptions that are basedon value of transaction oritem?
The caps or thresholds apply only to sales of motor vehicles, aircraft,watercraft, modular homes, manufactured homes, or mobile homes aspermitted under section 323( C) of the Agreement.
323040D.1. Does the state havecap or threshold on thevalue of clothing?
No
323050
D.2. If the state has athreshold on clothing,does the state meet eachof the followingrequirements:
323060
a. Either provide that (1)the entire price if the itemis taxable if the price isover the threshold or (2)only the portion of theprice of each item over thethreshold is taxable?
323070b. The price threshold ofeach individual item isgreater than $110?
323080
c. If the state adopts aclothing threshold underthis Section of theAgreement and a salestax holiday on clothingunder Section 322 of theAgreement, does the stateprovide that the clothingthreshold under thisSection does not applyduring the sales taxholiday on clothing?
Section324 Rounding rule
3240101. Does the state providethat the tax computationmust be carried to the thirddecimal place?
YesA.C.A. 26-21-108,GR-71(C)
324020
2. Does the state providethat the tax must berounded to a whole centusing a method thatrounds up to next centwhenever third decimalplace is greater than fourafter?
YesA.C.A. 26-21-108,GR-71(C)
324030
B.1. Does the state allowsellers to elect to computetax due on a transaction,on a item or invoice basis,and shall allow roundingrule to be applied toaggregated state and localtaxes?
YesA.C.A. 26-21-108,GR-71(C)
The governing statute provides that the state shall allow the rounding rule to beapplied to aggregated state and local taxes. The language of the rule will bereconciled during the next rule-making session.
324040 B.2. Can the state confirmthat it has repealed anyrequirements for sellers to
Yes
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collect tax on bracketsystem?
Section325
Customer refundprocedures
325010
C. Does the state providethat a cause of actionagainst seller does notaccrue until the purchaserhas provided writtennotice to the seller and theseller has had 60 days torespond? Notice mustcontain informationnecessary to determinevalidity of request.
Yes A.C.A. 26-21-109
325020
D. Does the state providefor uniform language inregard to presumption of areasonable businesspractice when a seller: I)uses either a provider or asystem, including aproprietary system, that iscertified by the state; andii) has remitted to state alltaxes collected, lessdeductions, credits orcollection allowances?
Yes A.C.A. 26-21-109
Section326 Direct pay permits
326010
Does the state provide fora direct pay authority thatallows the holder of adirect pay permit topurchase otherwisetaxable goods andservices without paymentof tax to the supplier at thetime of purchase?
Yes A.C.A. 26-52-509
Section327
Library ofdefinitions
327010
A. If term defined inLibrary appears in state'sstatutes, rules orregulations, has the stateadopted the definition insubstantially the samelanguage as the Librarydefinition?
Yes
327020
B. Can the state confirmthat it does not use aLibrary definition that iscontrary to meaning ofLibrary definition?
C. Except as provided inSections 316 and 332 andLibrary, can the stateconfirm that it imposes taxon all products andservices included withineach Part II or Part III(B)definition or exempts fromtax all products or serviceswithin each definition,including all products andservices listed in the rules,appendices andinterpretive opinionsadopted by the GoverningBoard?
Yes
Section328 Taxability matrix
328010
A1. Has the statecompleted the Library ofDefinitions portion of thetaxability matrix in thedownloadable formatapproved by GoverningBoard?
Yes
328020
A2. Has the statecompleted the TaxAdministrationPractices portion of thetaxability matrix in thedownloadable formatapproved by theGoverning Board?
Yes
328030
B. Does the state providenotice of changes in thetaxability matrix asrequired by the GoverningBoard?
Yes A.C.A. 26-52-108
328040 C.Does the state relievesellers and CSPs fromliability to the state and itslocal jurisdictions forhaving charged and
Yes A.C.A. 26-21-106; GR79(D)
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collected incorrect taxresulting from erroneousdata in the Library ofDefinitions section of thetaxability matrix?
328060
E. If the state taxesspecified digital products,has the state noted suchin the Library of Definitionssection of the taxabilitymatrix?
Yes
328070
F. If the state has a salestax holiday, has the statenoted the exemption in theLibrary of Definitionssection of the taxabilitymatrix?
YesA.C.A. 26-52-444,Rule 2012-2
Section329
Effective date forrate changes
Does the state providethat the effective date ofrate changes for servicescovering a period startingbefore or ending after thestatutory effective date isas follows:
329010
1. For a rate increase, thenew rate shall apply to thefirst billing period startingon or after the effectivedate?
Yes A.C.A. 26-21-112
3290202. For a rate decrease,new rate shall apply tobills rendered on or afterthe effective date?
Yes A.C.A. 26-21-112
Section330
BundledTransactions
330010 SSTGB RULES330.1 and 330.2
A. Has the state adoptedand does the state utilizethe core definition of"bundled transaction" todetermine tax treatment?
YesA.C.A. 26-52-103 (2),GR-93(C)
C. Can the state confirmthat for bundledtransactions that includetelecommunicationservice, ancillary service,internet access, or audioor video programmingservice the following rulesapply:
330020
1.For transactions thatinclude both taxable andnontaxable items, theprice attributable tonontaxable items isexempt if the provider canidentify the price byreasonable and verifiablestandards from its booksand records.
Yes GR-7(B),GR-93(F)
330030
2. For transactions thatinclude products subject todifferent tax rates, the totalprice may be treated asattributable to the productssubject to tax at thehighest tax rate unless theprovider can identify byreasonable and verifiablestandards the portion ofthe price attributable to theproducts subject to tax atthe lower rate from itsbooks and records thatare kept in the regularcourse of business forother purposes, including,but not limited to, non-taxpurposes?
Yes GR-7(B),GR-93(F)
330040 SSTGB RULE 330.3
D. If the state otherwisehas not specificallyimposed tax on the retailsales of computersoftware maintenancecontracts, does the statetreat softwaremaintenance contracts asprovided in this section?
Yes
Section331
Relief from certainliability forpurchasers
A. Does the state providerelief for purchasers fromliability for penalty to thatstate and its localjurisdictions for having
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failed to pay the correctamount of sales or use taxin the followingcircumstances:
331010
1. A purchaser's seller orCSP relied on erroneousdata provided by the stateon tax rates, boundaries,taxing jurisdictionassignments, or in thetaxability matrix completedby the state pursuant toSection 328?
Yes
A.C.A. 26-18-208, 26-21-105, 26-21-106,GR-79(D)
331020
2. A purchaser holding adirect pay permit relied onerroneous data providedby the state on tax rates,boundaries, taxingjurisdiction assignments,or in the taxability matrixcompleted by the statepursuant to Section 328?
Yes
A.C.A. 26-18-208, 26-21-105, 26-21-106,GR-79(D)
331030
3. A purchaser relied onerroneous data providedby the state in thetaxability matrix completedby the state pursuant toSection 328?
Yes
A.C.A.26-18-208, 26-21-105, 26-21-106,GR-79(D)
331040
4. A purchaser usingdatabases pursuant tosubsections (F), (G), and(H) of Section 305 reliedon erroneous dataprovided by the state ontax rates, boundaries, ortaxing jurisdictionassignments?
YesA.C.A. 26-18-208, 26-21-105, 26-21-106
331050
B. (Except whereprohibited by a memberstate's constitution) Doesthe state relieve apurchaser from liability fortax and interest to thestate and its localjurisdictions for havingfailed to pay the correctamount of sales or use taxin the circumstancesdescribed in Section 331A, provided that, withrespect to reliance on thetaxability matrix completedby the state pursuant toSection 328, such relief islimited to the state'serroneous classification inthe taxability matrix ofterms included in theLibrary of Definitions as"taxable" or "exempt","included in sales price" or"excluded from salesprice" or "included in thedefinition" or "excludedfrom the definition".
YesA.C.A. 26-21-106,GR-79(D
Section332
Specified DigitalProducts
332010 SSTGB RULES332.1 and 332.2
A. Does the state includespecified digital products,digital audio-visual works,digital audio works, ordigital books in itsdefinition of ancillaryservices, computersoftware,telecommunicationservices or tangiblepersonal property?
Yes A.C.A 26-52-301
332020
D1. Is the state's tax onspecified digital products,digital audio-visual works,digital audio works, ordigital books construed toapply only to the end userunless specificallyimposed on someoneother than the end user?
Yes A.C.A 26-52-301
332030
D2. Is the state's tax onspecified digital products,digital audio-visual works,digital audio works, ordigital books construed toapply only on a sale withthe right of permanent useunless specificallyimposed on a sale withless than permanent use?
Yes A.C.A 26-52-301
332040 D3. Is the state's tax onspecified digital products,digital audio-visual works,digital audio works, ordigital books construed to
Yes A.C.A 26-52-301
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apply only on a sale whichis not conditioned uponcontinued payment fromthe purchaser unlessspecifically imposed on asale which is conditionedupon continued paymentfrom the purchaser?
332050
D4. Does the state'staxability matrix indicate ifthe state's tax is imposedon a product transferredelectronically to a personother than the end user oron a sale with the right ofless than permanent usegranted by the seller orwhich is conditioned uponcontinued payment fromthe purchaser?
Yes A.C.A 26-52-301
332060
G. Is the state's taxtreatment of the sale of adigital code the same asthe tax treatment ofspecified digital product orproduct deliveredelectronically to which thedigital code relates?
Yes A.C.A 26-52-301
Section333
Use of SpecifiedDigital Products
Effective January 1,2010
333010
Excluding prewrittencomputer software, doesthe state include anyproduct transferredelectronically in itsdefinition of tangiblepersonal property?
No
Section334
Prohibitedreplacement taxes
334010 SSTGB RULE 334Does the state have anyprohibited replacementtaxes?
No
Section335
Tax AdministrationPractices
335010
No state shall befound out ofcompliance with theAgreement becausethe effect of thestate's laws, rules,regulations, andpolicies do not followeach of the taxadministrationpractices adopted bythe GoverningBoard.
Did the state complete theTax AdministrationPractices section of thetaxability matrix by the firstday of the calendar monththat is at least 60 daysafter the date theGoverning Board selects adisclosed and/or bestpractice and submit it tothe Executive Director forposting on the GoverningBoard's website?
Yes
Section401 Seller participation
401010 SSTGB RULE 401.1A. Does the stateparticipate in theGoverning Board's onlineregistration system?
Yes A.C.A. 26-21-104
401020
B. Does the state providethat it will not use a seller'sregistration with thecentral registration systemand collection of taxes inmember states indetermining whether sellerhas nexus with state fortax at any time?
Yes A.C.A. 26-21-104
Section402
Amnesty forregistration
402010CRICINTERPRETIVEOPINIONS 2006-8and 2006-9
A.1. Does the stateprovide amnesty to aseller who registers to payor collect and remitapplicable tax inaccordance withAgreement, provided theseller was not soregistered in state in 12-month period precedingeffective date of state'sparticipation in theAgreement?
Yes A.C.A. 26-21-110 The amnesty period has lapsed.
402020 A.2. Does the stateprovide that their amnestywill preclude assessmentfor tax together withpenalty and interest forsales made during theperiod the seller was notregistered in the state,provided registrationoccurs within 12 months of
Yes A.C.A. 26-21-110
The amnesty period has lapsed.
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the effective date of state'sparticipation in theAgreement?
402030
A.3. For states that jointhe Agreement after theseller has alreadyregistered under theAgreement, does the stateprovide amnesty to thosesellers in accordance withA.1. and A.2. above?
Yes A.C.A. 26-21-110 The amnesty period has lapsed.
402040CRICINTERPRETIVEOPINION 2006-2
B. Does the state providethat its amnesty is notavailable to a seller whohas received a notice ofaudit from that state andthe audit is not yetresolved, including anyrelated administrative andjudicial processes?
Yes A.C.A. 26-21-110 The amnesty period has lapsed.
402050CRICINTERPRETIVEOPINION 2006-1
C. Does the state providethat its amnesty does notapply to taxes alreadypaid to the state or totaxes already collected bya seller?
Yes A.C.A. 26-21-110 The amnesty period has lapsed.
402060CRICINTERPRETIVEOPINIONS 2006-6,2006-8 and 2006-9
D. Does the state providethat its amnesty is fullyeffective, absent fraud ormisrepresentation ofmaterial fact, as long asthe seller continuesregistration and continuespayment of taxes forperiod of at least 36months? Did the state tollits statute applicable toasserting a tax liabilityduring 36 month period?
Yes A.C.A. 26-21-110 The amnesty period has lapsed.
402070
E. Does the state providethat its amnesty isapplicable only to taxesdue from a seller in itscapacity as seller and notin its capacity as a buyer?
Yes A.C.A. 26-21-110 The amnesty period has lapsed.
Section403
Method ofremittance
403010Does the state providethat the seller may selectone of the technologymodels?
403020A. Model 1-seller selectsCSP as agent to performall functions except remittax on its own purchases?
Yes A.C.A. 26-21-103
403030B. Model 2-seller selectsCAS which calculatesamount of tax due?
Yes A.C.A. 26-21-103
403040C. Model 3-seller utilizesown proprietary systemthat has been certified asa CAS?
Yes A.C.A. 26-21-103
Section404
Registration by anagent
404010Does the state providethat the seller may beregistered by an agent?
Yes UT-6
404020
This isn't acompliance issue butis something sellersand their agentsshould know.
Does the state require thatthe written agentappointments besubmitted to the state?
No An agent registering a seller through the central registration system is notrequired to submit a written agent appointment.
Section501
Provider andSystemCertification
501010SSTGB RULES501.1, 501.2, 501.3,501.4, 501.5, 501.6,501.7 and 501.8
A. Does state law providefor provider and systemcertification to aid in theadministration of salesand use tax collection?
Yes A.C.A. 26-21-111
Section502
State review andapproval ofCertifiedAutomated SystemSoftware andCertain LiabilityRelief
502010
A. Can the state confirmthat it reviews softwaresubmitted for certificationas a CAS under Section501?
Yes A.C.A. 26-21-111
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502020 B. Does the state provideliability relief to CSP's andmodel 2 sellers forreliance on thecertification?
Yes A.C.A. 26-21-106, 26-21-111
502030
C. Does the state provideliability relief to CSP's inthe same manner asprovided to sellers underSection 317?
Yes
A.C.A. 26-20-109, 26-21-106, 26-21-111,GR-79
502040
E. Does the state allowthe CSP or model 2 seller10 days to correctclassification of itemsfound to be in error beforeholding the CSP or model2 seller liable?
Yes A.C.A. 26-21-111
Section601
Monetaryallowance underModel 1
601010
A. Does the state providea monetary allowance to aCSP in Model 1 inaccordance with the termsof the contract betweenthe governing board andthe CSP?
Yes A.C.A. 26-21-111
Section602
Monetaryallowance forModel 2 sellers
602010 SSTGB RULES602.1 and 602.2
Does the state providemonetary allowance toModel 2 sellers pursuantto the Governing Board'srules?
Yes A.C.A. 26-21-111
APPENDIX C - LIBRARYOF DEFINITIONS
Please verify for eachitem that the state usesthe definition providedby the Agreement. If theitem is not applicable inyour state, answer"N/A."
