As the practice of developing a new concept through the use of crowdsourcing, companies need to be aware of the tax implications once their effort becomes a reality. A company that used a crowdfunding campaign to raise funds to produce a card game was liable for Arkansas sales tax on its sales of the card game to its crowdfunding donors. Donors to the crowdfunding campaign pledged money with the expectation of receiving a physical copy of the card game in return. These transactions constituted sales of taxable tangible personal property in Arkansas, and the company was therefore required to collect Arkansas sales tax at the time that it received the money from the donors (buyers). The company was required to remit sales tax to Arkansas on the actual amount of money that it received through the campaign as well as tax on the 5% service fee deducted by the crowdfunding platform. The company was also required to obtain a sales tax permit with Arkansas since it was selling tangible personal property. The company noted that the crowdfunding platform did not provide it with the billing/delivery addresses of its donors, so it was not able to determine the donors’ locations for purposes of sourcing the sales. In instances where a donor’s delivery address was unknown to the company, the sale should be sourced to the address from which the card game was shipped. (Revenue Legal Counsel Opinion Number 20180923, Arkansas Department of Finance and Administration, October 15, 2018)