Arkansas –Sales and Use Tax: Bill to Restore Origin Sourcing Introduced
News
CCH (cch.taxgroup.com) reports:
A bill has been introduced in the Arkansas Legislature that would replace destination-based sourcing with origin-based sourcing for Arkansas sales and use tax purposes. Under the proposed legislation, a retail sale would be sourced to the seller’s business location, beginning July 1, 2009.
If a purchaser picks up the good in Arkansas in his or her own conveyance, sales tax must be collected. If property is sold by a seller in Arkansas and the seller is required under the terms of the sales contract to deliver the property by common carrier, U.S. Postal Service, or in the seller’s own conveyance to a point outside the state for consumption and use, the transaction would not be subject to sales or use tax and may be deducted. If a taxable service is performed in Arkansas, sales or use tax must be collected based on the location where the service is performed.