[pmassociation]

Arkansas affiliate nexus tax takes effect June 9.

Click here for more information.

[markwelch]

Merchant should read the language of the Arkansas law (here) carefully -- particularly the language regarding sales within the "previous 12 months."

Despite the delayed effective date (90 days from enactment), the "previous 12 months" language creates a look-back period which appears to assert a sales-tax collection duty on merchants who've sold $10,000 of merchandise to Arkansas residents since June 2010.

Advertisers should consult with an Arkansas attorney to determine the impact of this law on advertisers who terminate their advertising relationships with Arkansas publishers before June 2011.

Despite the deferred effective date, Arkansas publishers should definitely expect to receive "immediate termination" notices from out-of-state advertisers who don't already collect Arkansas sales tax.

[States-Sales-Tax]

Online sellers beware, other than click-through nexus, don’t overlook other activities you have in AR such as having "Facilitator" who directly aids or assists you in making remote sales, including a person that operates a website marketplace through which the seller makes sales.

Moreover, there was no statute of limitations applicable to failure to file returns. The State interprets the failure to file “return” broadly to include the collection of sales and use taxes. Given that broad interpretation, the State has the discretion to assess unreported taxes “at any time,” which means no statute of limitations applies.
If you did file a return, then §26-18-306(a) imposes a three-year statute of limitations on assessments involving erroneous filed returns, and A.C.A. §26-18-306(e) imposes a six-year statute of limitations for assessments involving understatements of tax reported in excess of 25%).