Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas
2 93rd General Assembly A Bill
3 Regular Session, 2021 HOUSE BILL 1038
4
5 By: Representative Jett
6
7 For An Act To Be Entitled
8 AN ACT TO AMEND THE LAW CONCERNING DELIVERY CHARGES
9 UNDER THE ARKANSAS GROSS RECEIPTS ACT OF 1941; TO
10 CLARIFY THAT SALES TAX IS REQUIRED TO BE COLLECTED
11 AND REMITTED ON DELIVERY CHARGES FOR SALES BY A
12 MARKETPLACE FACILITATOR; AND FOR OTHER PURPOSES.
13
14
15 Subtitle
16 TO CLARIFY THAT SALES TAX IS REQUIRED TO
17 BE COLLECTED AND REMITTED ON DELIVERY
18 CHARGES FOR SALES BY A MARKETPLACE
19 FACILITATOR.
20
21
22 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
23
24 SECTION 1. Arkansas Code 26-52-103(7), concerning the definitions
25 used under the Arkansas Gross Receipts Act of 1941, is amended to read as
26 follows:
27 (7)(A) Delivery charge means a charge by a seller or a
28 marketplace facilitator of tangible personal property or services for
29 preparation and delivery to a location designated by the purchaser of the
30 tangible personal property or services, including without limitation
31 transportation, shipping, postage, handling, crating, and packing.
32 (B) If a shipment includes tax-exempt property and taxable
33 property, the seller or marketplace facilitator shall pay the tax imposed by
34 this chapter only on the percentage of the delivery charge allocated to the
35 taxable property by using:
36 (i) A percentage based on the total sales price of
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HB1038
1 the taxable property compared to the total sales price of all property in the
2 shipment; or
3 (ii) A percentage based on the total weight of the
4 taxable property compared to the total weight of all property in the
5 shipment;
6
7 SECTION 2. Arkansas Code 26-52-103(19)(A), concerning the
8 definitions used under the Arkansas Gross Receipts Act of 1941, is amended to
9 read as follows:
10 (19)(A) Gross receipts, gross proceeds, or sales price
11 means the total amount of consideration, including cash, credit, property,
12 and services, for which tangible personal property, specified digital
13 products, a digital code, or services are sold, leased, or rented, valued in
14 money, whether received in money or otherwise, without a deduction for the
15 following:
16 (i) The seller's cost of the property sold;
17 (ii) The cost of materials used, labor or service
18 cost, interest, any loss, any cost of transportation to the seller, any tax
19 imposed on the seller, and any other expense of the seller;
20 (iii) A charge by the seller for any service
21 necessary to complete the sale, other than a delivery charge or an
22 installation charge;
23 (iv) Delivery charge whether charged by a seller or
24 a marketplace facilitator;
25 (v)(a) Installation charge.
26 (b) Installation charges shall not be included
27 in the gross receipts, gross proceeds, or sales price if they are not a
28 specifically taxable service under this chapter or the Arkansas Compensating
29 Tax Act of 1949, 26-53-101 et seq., and the installation charges have been
30 separately stated on the invoice, billing, or similar document given to the
31 purchaser; or
32 (vi) Credit for any trade-in.
33
34 SECTION 3. EFFECTIVE DATE. Sections 1 and 2 of this act are effective
35 on the first day of the calendar quarter following the effective date of this
36 act.
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Statutes affected: HB 1038: 26-52-103(7), 26-52-103(19)