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 threshold from $200,000 to $500,000 per month for retailers registered to collect the Arkansas gross receipts tax. This change means that only those retailers with average monthly sales exceeding $500,000 will be mandated to prepay their sales tax starting January 1 of the following year.

Additionally, the bill outlines the methods by which qualifying retailers can make their prepayments. Retailers can choose to make two payments each month, amounting to 40% of the tax due based on their average net sales, or they can opt to pay at least 80% of their gross receipts tax liability by the 24th of each month. The remaining balance of actual collections must be submitted with the monthly gross receipts tax report due by the 20th of the following month.

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