006.05.212-GR-79. PERSONS LIABLE FOR TAX AND EXEMPTIONS:
AR ADC 006.05.212-GR-79Arkansas Administrative Code
Ark. Admin. Code 006.05.212-GR-79
006.05.212-GR-79. PERSONS LIABLE FOR TAX AND EXEMPTIONS:
A. The tax must be collected, reported, and remitted by the seller of tangible personal property; the seller or collector of admissions to places of amusement, recreational, or athletic events; the seller of privileges of access to, or the use of amusement, entertainment, athletic, or recreational facilities; and by any other person furnishing any service subject to the tax.
B. CORPORATIONS. If the seller of tangible personal property or taxable services is a corporation and the corporation fails to collect, truthfully account for, and remit the proper amount of tax, interest, and penalty, then the officers or employees of the corporation charged with those duties shall also be personally, jointly, and severally liable for a penalty equal to the amount of the tax.
1. Sellers. Except as provided in GR-79(D)(3), a seller or certified service provider using a database provided by the Department shall not be liable to the State of Arkansas or its local jurisdictions for charging and collecting the incorrect amount of sales or use tax if the seller or the certified service provider relied on erroneous data provided by the Department on sales or use tax rates, boundaries, or taxing jurisdiction assignments, or the taxability matrix, which may be viewed on the Department's website at: www.state.ar.us/salestax.
a. Relief from liability for tax and interest. Except where prohibited by the Arkansas Constitution, a purchaser will be relieved from liability for tax and interest owed for having failed to pay the correct amount of sales or use tax as described in GR-79(D)(2) if this state erroneously classified terms in the library of definitions section of the taxability matrix as “taxable” or “exempt”, “included in the sales price” or “excluded in the sales price”, or “included in the definition” or “excluded in the definition”.
3. If the Department provides an address-based boundary database for assigning taxing jurisdictions and their associated sales or use tax rates, the Department may cease providing the relief from liability provided in GR-79(D)(1) and GR-79(D)(2) if the Department gave adequate notice. If it is demonstrated that requiring the use of the address-based database would create an undue hardship, the Department may extend the relief from liability to the seller for a designated period of time.
2. A seller that follows the exemption requirements is relieved from any tax otherwise applicable if it is determined that the purchaser improperly claimed an exemption. If it is determined that the purchaser improperly claimed an exemption, the purchaser will be liable for the nonpayment of tax, as well as any penalty and interest due on the transaction. This relief from liability does not apply to a seller who does any of the following:
3. A seller has ninety (90) days from the date of sale to obtain a fully completed exemption certificate or information that is the equivalent of the information required by the exemption certificate. For example, if the seller cannot obtain a fully completed exemption certificate, then the seller has ninety (90) days to obtain the following information:
4. If a seller has not obtained an exemption certificate or equivalent information and the Department makes a request for substantiation of the exemption, then the seller has one-hundred twenty (120) days from the date of the request to prove by other means that the transaction was not subject to sales or use tax or to obtain in good faith a fully completed exemption certificate from the purchaser.
a. Unless otherwise provided, an exemption that is not the sale-for-resale exemption should be claimed through the use of the general exemption certificate (Form ST 391) or the multistate certificate of exemption (SSTGB Form F0003). Both forms may be obtained on the Department's website at: www.state.ar.us/salestax.
Credits
AUTHORITY: Ark. Code Ann. §§ 26-18-501; 26-21-106; 26-21-107; 26-52-508; 26-52-517
Current with amendments received through May 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.05.212-GR-79, AR ADC 006.05.212-GR-79
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