Arkansas Sales and Use Tax Impact of Wayfair Decision

Wayfair has quashed the requirement that a company or vender must be physically located in a state to be subject to the respective sales and use tax within the state. The landmark Supreme Court of the United States decision has prompted responses from states across the country. However, the Arkansas Office of Revenue legal counsel cannot currently state the sales tax impact of the decision on remote sellers.

The Wayfair decision did not state what minimum contacts a remote seller must have with a taxing state. The decision did state, however, that a seller who meets South Dakota’s annual minimum threshold in transactions or dollar amount in goods or services delivered into the state has sufficient minimum contact.

To register to remit sales and use taxes in Arkansas you will need to file Form ET-1. To receive the ET-1 form you must contract the Arkansas Department of Finance and Administration. You may also file Form ET-1 Online for faster service. Instructions on filing this form can be found here. A qualified tax attorney can assist with the execution of the application and potential questions or concerns that may arise in the process.

Jeanette Moffa is an attorney who concentrates on state and local taxes at Moffa, Sutton, & Donnini, P.A. She is also an adjunct professor and assistant editor to the American Bar Association’s The Sales and Use Tax Deskbook. She can be reached at 954-800-4138 or JeanetteMoffa@FloridaSalesTax.com. She can be reached at 954-800-4138 or JeanetteMoffa@FloridaSalesTax.com