E-commerce Taxation In Arkansas

Internet sales are subject to sales tax and consumers often have a responsibility to remit any unpaid sales tax on online purchases directly to their state. The obligation to pay sales tax is determined by the location of the buyer, not the seller. If a business does not have a physical presence in a particular state, such as a store or warehouse, it is not required to collect sales tax for sales from customers in that state. In legal speak, this connection between sales and location is referred to as a "nexus" and was established by the United States Supreme Court in Quill v. North Dakota, 504 U.S. 298 (1992). This case established that states cannot compel out-of-state companies to collect sales taxes unless the company has a physical presence, or "nexus," in the state. This would include a warehouse, office, or retail store.

The following questions have been addressed in this article:

What are the provisions of Act 922 (2001)?
What are the other provisions relating to E-commerce taxation in Arkansas?
What are the current programs of Arkansas State for E-commerce taxation?
State the general sales/use tax provisions in Arkansas:


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