Arkansas Code § 26-52-503 - Discount for Prompt Payment

(a) At the time of transmitting the returns required under this chapter to the Director of the Department of Finance and Administration, the taxpayer shall remit with the returns to the director ninety-eight percent (98%) of the state tax due under the applicable provisions of this chapter and ninety-eight percent (98%) of the city and county gross receipts taxes collected by the director.

(b) Failure of the taxpayer to remit the tax on or before the twentieth day of the applicable month shall cause the taxpayer to forfeit his or her claim to the discount, and the taxpayer must remit to the director one hundred percent (100%) of the amount of tax plus any penalty and interest due.

(c) (1) (A) For tax payments made on or after February 1, 1993, the discount for prompt payment of state tax shall not exceed one thousand dollars ($1,000) per month for a taxpayer filing monthly gross receipts tax reports.

(B) A taxpayer filing a tax report on a quarterly, annual, or occasional basis shall be entitled to the discount for state tax, which shall not exceed one thousand dollars ($1,000) for each month included in the tax report.

(2) (A) The aggregate state tax discount available to a taxpayer who operates more than one (1) permitted business location within this state and who does not file a consolidated monthly gross receipts tax report for all locations shall not exceed one thousand dollars ($1,000) per month.

(B) In the case of a corporate taxpayer, parent corporation, that holds fifty percent (50%) or more of the outstanding shares of one (1) or more corporations, subsidiaries, that are subject to the tax imposed by this chapter, the aggregate state tax discount available to the parent corporation and all subsidiaries shall not exceed one thousand dollars ($1,000) per month.

(C) There shall be no limitation on the discount for prompt payment of city and county gross receipts taxes collected by the director.

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Last modified: November 15, 2016