The bill amends the law regarding the prepayment of sales tax in Arkansas by increasing the threshold for retailers required to prepay. Specifically, it raises the average net sales requirement from $200,000 to $500,000 per month for the preceding fiscal year. Retailers who meet this new threshold will be required to make prepayments of sales tax via electronic funds transfer starting January 1 of the following year.

Additionally, the bill outlines two payment options for qualifying retailers. The first option allows for two payments each month, each equal to 40% of the tax due based on monthly average net sales, with the balance due by the 20th of the following month. The second option permits a single payment of at least 80% of the gross receipts tax liability by the 24th of the month, with the remaining balance also due by the 20th of the following month.

Statutes affected:
HB 1970: 26-52-512(a)