Arkansas Code § 26-21-103 - Definitions

As used in this chapter:

(1) "Agent" means a person appointed by a seller to represent the seller before the State of Arkansas and the other states in the agreement;

(2) "Agreement" means the multistate agreement to simplify and modernize sales and use tax administration known as the "Streamlined Sales and Use Tax Agreement";

(3) "Certified automated system" means software that is certified under the agreement to calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to remit to the appropriate state, and maintain a record of the transaction;

(4) "Certified service provider" means an agent certified under the agreement to perform all the seller's sales and use tax functions, other than the seller's obligation to remit tax on its own purchases;

(5) (A) "Entity-based exemption" means an exemption based on who purchases the product or who sells the product.

(B) An exemption that is available to all individuals shall not be considered an entity-based exemption;

(6) "Model 1 seller" means a seller registered under the agreement that has selected a certified service provider as its agent to perform all the seller's sales and use tax functions, other than the seller's obligation to remit tax on its own purchases;

(7) "Model 2 seller" means a seller registered under the agreement that has selected a certified automated system to perform part of its sales and use tax functions, but retains responsibility for remitting the tax;

(8) (A) "Model 3 seller" means a seller registered under the agreement that has:

(i) Sales in at least five (5) member states;

(ii) Total annual sales revenue of at least five hundred million dollars ($500,000,000);

(iii) A proprietary system that calculates the amount of tax due each jurisdiction; and

(iv) Entered into a performance agreement with the member states that establishes a tax performance standard for the seller.

(B) As used in subdivision (8)(A) of this section, "seller" includes an affiliated group of sellers using the same proprietary system;

(9) "Model 4 seller" means a seller that is registered under the agreement and is not a model 1 seller, model 2 seller, or model 3 seller;

(10) "Person" means an individual, trust, estate, fiduciary, partnership, limited liability company, limited liability partnership, corporation, or any other legal entity;

(11) "Purchaser" means a person to which a sale of personal property is made or to which a service is furnished;

(12) "Seller" means a person making sales, leases, or rentals of personal property or services;

(13) "State" means any state of the United States, the District of Columbia, and the Commonwealth of Puerto Rico; and

(14) "Use-based exemption" means an exemption based on a specified use of the product by the purchaser.

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Last modified: November 15, 2016