In the wake of the U.S. Supreme Court’s Wayfair decision, which overruled a physical presence requirement that stood for nearly three decades, several states began taking steps to enact economic nexus legislation similar to that of South Dakota.  However, Arkansas has not been one of those states.

The Arkansas Office of Revenue Legal Counsel issued an opinion indicating that the effect of Wayfair on Arkansas “remains uncertain.”  Remote sellers conducting business in Arkansas can take comfort in the fact that the necessary legislation to impose a collection duty on remote sellers is currently only in the conceptual stage.  The Arkansas Legislative Tax Reform and Relief Task Force has indicated that it may recommend, in its final report, a bill for introduction in the 2019 legislative session.

Nonetheless, remote sellers conducting business in Arkansas should remain vigilant for any new developments in the state regarding economic nexus.  Sellers do have the option to voluntarily collect and remit Arkansas sales tax. Remote sellers can register to begin collecting and remitting Arkansas sales or use taxes directly with Arkansas via the Arkansas Taxpayer Access Point (“ATAP”) or by using the Streamlined Sales Tax Registration System. A qualified tax attorney can assist with the execution of the application and potential questions or concerns that may arise in the process.

Gerald “Jerry” Donnini II is a shareholder of the Law Offices of Moffa, Sutton, & Donnini, P.A. Mr. Donnini concentrates in the area of state and Federal tax matters, with a heavy emphasis on the tobacco, alcohol, motor fuel and related industries. He also handles a myriad of multi-state state and local tax issues. Mr. Donnini is a co-author for CCH’s Expert Treatise Library: State Sales and Use Tax and writes extensively on multi-state tax issues for SalesTaxSupport.com.  For more information please call us at 888-966-8216.

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