§ 26-75-406 - Manner of collection. - Arkansas Statutes

26-75-406. Manner of collection.

(a) (1) In each city or town in which a local sales and use tax has been imposed in the manner provided by this subchapter, every retailer shall add the tax imposed by the Arkansas Gross Receipts Act of 1941, 26-52-101 et seq., the Arkansas Compensating Tax Act of 1949, 26-53-101 et seq., and this subchapter to the retailer's sale price.

(2) When added, the combined tax shall:

(A) Constitute a part of the price;

(B) Be a debt of the purchaser to the retailer until paid; and

(C) Be recoverable at law in the same manner as the purchase price.

(b) (1) Retailers shall collect and remit the tax levied by any city or town pursuant to this subchapter in the same manner and at the same time as the state gross receipts tax or compensating tax is collected and remitted.

(2) The tax levied in this section on motor vehicles shall be collected by the Director of the Department of Finance and Administration directly from the purchaser in the same manner as the state gross receipts tax.

(c) (1) Each vendor who is liable for one (1) or more city sales or use taxes shall report a combined city sales tax and a combined city use tax on the vendor's sales and use tax report.

(2) The combined city sales tax is equal to the sum of all sales taxes levied by a city under this subchapter or any other provision of the Arkansas Code.

(3) The combined city use tax is equal to the sum of all use taxes levied by a city under this subchapter or any other provision of the Arkansas Code.

(4) This provision applies only to taxes collected by the director.