2010 Arkansas Code
Title 26 - Taxation
Subtitle 5 - State Taxes
Chapter 58 - Severance Taxes
Subchapter 1 - General Provisions
§ 26-58-114 - Monthly reports and payment of tax by producers, primary processors -- Cancellation of permit upon cessation of business -- Penalty for noncompliance.

26-58-114. Monthly reports and payment of tax by producers, primary processors -- Cancellation of permit upon cessation of business -- Penalty for noncompliance.

(a) Each producer of natural resources, excluding natural gas, and each primary processor of timber, whether or not he or she shall have actually severed natural resources, excluding natural gas, or processed timber during the preceding month, shall file a report within twenty-five (25) days after the end of each month with the Director of the Department of Finance and Administration in a form prescribed by the director that states:

(1) The kind of natural resources or timber, if any, severed by such producer or processed or acquired for processing by the primary processor during the next preceding month;

(2) The point of severance;

(3) The gross quantity severed and the cash value;

(4) The amount of severance tax due; and

(5) Any other information as the director may reasonably require for the enforcement of this subchapter.

(b) (1) A producer of natural gas shall file with the director a report, in a form or forms prescribed by the director, that states:

(A) The natural gas, if any, severed by the producer for each calendar month;

(B) The point of severance;

(C) The gross quantity severed and the market value;

(D) The amount of severance tax due; and

(E) Any other information as the director may reasonably require for the enforcement of this subchapter.

(2) The producer shall file the monthly report required under subdivision (b)(1) of this section on or before the twenty-fifth day of the second month following the month that is covered by the report.

(3) The producer is required to file a report with the director for each month whether or not the producer has actually severed natural gas during the month.

(c) The report shall be verified by the producer or primary processor himself or herself in the instance of an individual producer or primary processor and by a member or officer or the manager of the producer or primary processor in all other instances.

(d) The payment of the full amount of the severance tax due from the report shall accompany the report.

(e) (1) Within ten (10) days after any producer or primary processor ceases operation with the intention of no longer engaging in the business of severing or processing natural resources or timber, the permit issued shall be returned by him or her to the director for cancellation.

(2) A producer or processor whose permit is cancelled under subdivision (e)(1) of this section may reengage in the business of severing or processing natural resources or timber after filing a new application with the director and receiving a new permit by the director.

(f) (1) Upon conviction, a producer or primary processor who fails to comply with this section is guilty of a violation and shall be fined not less than one hundred dollars ($100) nor more than five hundred dollars ($500) for each offense.

(2) Upon conviction, a person knowingly making a false material statement in a report required by this section is guilty of perjury under 5-53-102.