Direct payment to the state

(a)(1) The Commissioner of Revenue may permit a consumer to accrue and remit the tax directly to the commissioner instead of having such tax collected and paid by the seller.

(2) In order to obtain a direct payment number, the consumer must show and certify the following:

(A) That the consumer will comply with the provisions of the Arkansas Tax Procedure Act, Arkansas Code § 26-18-101 et seq., the Arkansas Gross Receipts Act of 1941, Arkansas Code § 26-52-101 et seq., and the Arkansas Compensating Tax Act of 1949, Arkansas Code § 26-53-101 et seq., and this part; and

(B) That the consumer will faithfully report and remit all state and local taxes due to the Secretary of the Department of Finance and Administration on or before the twentieth day of the month for the previous month’s taxable purchases, sales, or rentals.
(b)(1) Direct payment permits may be canceled by the commissioner at any time whenever the commissioner determines that the person holding the permit has not complied with the provisions of this section or that the cancellation would be in the best interests of the collection of the tax.

(2) A direct pay permittee is not entitled to any discount for prompt payment of the tax.
(c)(1) The tax will be remitted directly by a direct pay permit holder to the commissioner.

(2) A use vendor or sales tax retailer selling to the holder of a valid direct pay permit is not responsible for the collection of the tax.
(d)(1) Direct pay permit holders shall accrue and remit the local tax pursuant to the sourcing rules provided in Arkansas Code §§ 26-52-521 and 26-52-522 and 26 CAR § 30-1207.

(2) When direct pay permit holders purchase tangible personal property or taxable services, they must accrue and remit the local tax that applies in the location where the tangible personal property or service is received.