2010 Arkansas Code
Title 26 - Taxation
Subtitle 5 - State Taxes
Chapter 58 - Severance Taxes
Subchapter 1 - General Provisions
§ 26-58-116 - Purchasers' reports and payment of tax -- Penalties for noncompliance.

26-58-116. Purchasers' reports and payment of tax -- Penalties for noncompliance.

(a) (1) Unless a purchaser of natural resources, excluding natural gas, is excused in writing by the Director of the Department of Finance and Administration in advance of the report filing deadline from filing a report, a purchaser of natural resources, excluding natural gas, shall file with the director a verified report within twenty (20) days after the end of each month in a form or forms prescribed by the director that states:

(A) The names and addresses of all producers from whom the purchaser has acquired natural resources during the respective month;

(B) The types and total quantity of each type of the natural resources acquired and the purchase price; and

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

(b) (1) Unless a purchaser of natural gas is excused in writing by the director in advance of the report filing deadline from filing a report, a purchaser of natural gas shall file with the director a report in a form or forms prescribed by the director that states:

(A) The names, addresses, and severance tax permit numbers of all producers from whom the purchaser has purchased natural gas during each calendar month;

(B) The total quantity of natural gas acquired and the purchase price; and

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

(2) The purchaser of natural gas shall file each monthly report required under this subsection (b) on or before the twenty-fifth day of the second month following the month that is covered by the report.

(c) (1) It is the duty of each purchaser of natural resources, excluding natural gas, to ascertain in advance of permitting the natural resources so purchased to be processed or otherwise changed from the natural state thereof at the time of severance or to be transported for the purpose of such processing or other change that the severance tax upon the natural resources has been paid.

(2) Each purchaser of natural gas shall determine in advance of filing the report under subsection (b) of this section that each producer from whom the purchaser has purchased natural gas has been issued a severance tax permit number and furnish the director the severance tax permit number of each producer under subsection (b) of this section.

(3) (A) The purchaser of natural resources, excluding natural gas, is primarily liable for any unpaid severance tax in the event of failure to make such advance ascertainment.

(B) Each purchaser of natural gas is primarily liable for any unpaid severance tax that is attributable to a producer from whom the purchaser purchased natural gas if the purchaser fails to furnish the director with all of the information required in subsection (b) of this section.

(4) However, the purchaser as a condition to permitting the processing or other change of such natural resources, excluding natural gas, as to which the severance tax shall not have been paid by the producer may himself or herself pay such tax either in advance or, with the advance written approval of the director for cause shown to the director, within twenty (20) days after commencing the processing or other change of the natural resources or the transportation thereof for such purpose.

(d) (1) Unless the director has given advance written approval for the removal under subsection (a) of this section, the removal by the purchaser of natural resources, excluding natural gas, to any point of concentration or assembly, either inside or outside the state, without the severance tax having been previously paid by the producer or the purchaser is a fraudulent concealment of the location of the natural resources with the intent to avoid the payment of the severance tax.

(2) Unless the director has given advance written approval for the removal, the removal by the producer, purchaser, or primary processor of any timber to any point outside the state without the severance tax having been paid on the timber is unlawful.

(e) (1) Upon conviction, each removal described in subdivision (d)(1) of this section by the purchaser of natural resources, excluding natural gas, is a violation punishable by a fine of at least fifty dollars ($50.00) and not more than five hundred dollars ($500).

(2) Upon conviction, each removal described in subdivision (d)(2) of this section by a producer, purchaser, or primary processor is a violation punishable by a fine of at least fifty dollars ($50.00) and not more than five hundred dollars ($500).

(3) Upon conviction, each failure by a producer, purchaser, including a purchaser of natural gas, or primary processor to file a monthly report required by this section is a violation punishable by a fine of at least fifty dollars ($50.00) and not more than five hundred dollars ($500).

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