2010 Arkansas Code
Title 26 - Taxation
Subtitle 5 - State Taxes
Chapter 52 - Gross Receipts Tax
Subchapter 5 - Returns and Remittance of Tax
§ 26-52-522 - Direct mail sourcing.

26-52-522. Direct mail sourcing.

(a) (1) Notwithstanding 26-52-521, a purchaser of direct mail that is not a holder of a direct pay permit shall provide to the seller in conjunction with the purchase either a direct mail form or information to show the state and local jurisdictions to which the direct mail is delivered to recipients.

(2) (A) Upon receipt of the direct mail form, the seller is relieved of all obligations to collect, pay, or remit the applicable tax, and the purchaser is obligated to pay or remit the applicable tax on a direct pay basis.

(B) A direct mail form shall remain in effect for all future sales of direct mail by the seller to the purchaser until it is revoked in writing.

(3) (A) Upon receipt of information from the purchaser showing the jurisdictions to which the direct mail is delivered to recipients, the seller shall collect the tax according to the delivery information provided by the purchaser.

(B) In the absence of bad faith, the seller is relieved of any further obligation to collect tax on any transaction if the seller has collected tax pursuant to the delivery information provided by the purchaser.

(b) (1) If the purchaser of direct mail does not have a direct pay permit and does not provide the seller with either a direct mail form or delivery information as required by subsection (a) of this section, the seller shall collect the tax according to 26-52-521(b)(5).

(2) Nothing in this subsection shall limit a purchaser's obligation for sales or use tax to any state to which the direct mail is delivered.

(c) If a purchaser of direct mail provides the seller with documentation of direct pay authority, the purchaser shall not be required to provide a direct mail form or delivery information to the seller.

(d) The direct mail form must:

(1) Contain the purchaser's name and sales tax permit number;

(2) State that the purchaser will be remitting sales and use tax to the state; and

(3) Contain any additional information that the Director of the Department of Finance and Administration may require.