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Taxpayers who register to file sales/use tax returns under the Streamlined Sales Tax Project are granted full amnesty which includes forgiveness of all open sales and seller’s use tax, interest, and penalties for prior period sales/use tax liabilities by member states, but taxpayers are cautioned that the amnesty deadline varies by state. It is important to note that the amnesty does not apply to consumer’s use tax or any other taxes such as income, franchise, payroll, property or other excise taxes. The amnesty also does not cover any collected, but un-remitted taxes.

Amnesty is available in all states participating as full members or associate members of the Streamlined Sales and Use Tax Agreement (the “Agreement”). States will provide amnesty for uncollected or unpaid sales or use taxes to a seller who registers to pay or collect and remit taxes on sales made to purchasers in the state. The amnesty period, however, ends 12 months from the date the state becomes a full member of the Agreement.

As of October 1, 2005, there were 13 full member states: Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, New Jersey, North Carolina, North Dakota, Oklahoma, South Dakota, and West Virginia. Therefore, the amnesty deadline for these states ended September 30, 2006. For associate member states, the amnesty period begins on the date the state becomes an associate member and ends 12 months after the date they become full members. Thus, the amnesty period for associate member states will vary in length of time; however it will be longer than 12 months as taxpayers can also obtain amnesty during the period they are classified as an associate member state. Associate member states are Arkansas, Ohio, Tennessee, Utah, and Wyoming. For further information on background and how to obtain amnesty through the registration process, go to: http://www.streamlinedsalestax.org/amnesty.html.

(09/01/2006)

As of July 1, 2004 Arkansas is imposing gross receipts tax on the following services: 1) wrecker and towing; 2) collection and disposal of solid wastes; 3) cleaning parking lots and gutters; 4) dry cleaning and laundry services; 5) industrial laundry services; 6) mini warehouse and self-storage rental services; 7) body piercing, tattooing, and electrolysis; 8) pest control services; 9) security and alarm monitoring; 10) boat storage and docking; 11) furnishing camping or trailer spaces at public, excluding federal, or privately-owned campgrounds for less than month-to-month periods; 12) locksmith services; 13) pet grooming and kennel services. Locksmith services are defined as repairing, servicing, or installing locks and locking devices incorporated into real or tangible personal property or separate from other property, and unlocking locks or locking devices for another person; the initial installation of locks by a contractor in a new construction is excluded from the gross receipts tax. (Act 107 (H.B.1030), Laws 2003, effective as noted above)

(08/05/2004)

Arkansas Act 70 (House Bill 1100) enacts a state amnesty for voluntary payment of state taxes beginning July 1, 2004 through December 31, 2004. To be eligible for complete amnesty, a taxpayer must apply and submit all applicable forms between July 1, 2004 and September 30, 2004, as well as pay all taxes due as computed by the Arkansas Department of Finance and Administration within three (3) months from the filing date of the amnesty forms. Penalties and interest will be waived for all taxpayers who qualify and participate in the amnesty program. (Act 70 (H.B. 1100), Second Extraordinary Session, 2003, January 16, 2004)

(03/15/2004)

The Arkansas legislature has made several substantial changes to the state tax laws, some of which go into effect on March 1st. The first of these changes is the increase of the Arkansas Sales and Use Tax rate. Effective March 1, 2004, the state rate will go from 5.125% to 6.00%. Also, several new changes will be effective July 1, 2004. The first of these changes is the taxability of services, including some initial installation services. You can find a listing of the services which will be affected by clicking on the hyperlink provided below. Secondly, the Arkansas Wholesale Vending Tax will be increasing to 7%. Finally, businesses that fall behind on reporting or paying by two months will receive notice that their account is not current. If the business does not come into compliance or does not make arrangements to get current with the state before the third month, the Department will be authorized to shut down the business and post signs stating why the business was closed. Businesses which fall into this category will not be allowed to reopen until some type of arrangement has been satisfactorily completed. For a listing of services which will be subject to Arkansas Sales Tax and more details see:http://www.arkansas.gov/dfa/taxes/salestax/notices/whatsnew2004.html (What's New in Sales Tax for 2004, Arkansas Department of Finance and Administration, February 9, 2004)

(02/15/2004)

All applicable taxes must be included by the insurer to the insured, or to the person with claim against the insured, in the settlement of a claim for damages to an automobile as a total loss. These taxes include sales tax and fees, as is required under Rule and Regulation 43 of the State Insurance Department. Failure by the insurer to include all applicable taxes will result in an unfair claims settlement practice. (Act 58 (S.B. 243), effective March 24, 2003, approved March 18, 2003)

(06/15/2003)

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