Non-profit, Hand over the sales tax… Says Arkansas

An Arkansas non-profit entity wanted to take donated items and open up a store front in which to sell those items. The revenue generated from this store front was intended to support the non-profit’s rehabilitation center. The Arkansas Department of Finance and Administration Office determined that the revenues from the store front did not meet the definition of a charitable organization and that any and all sales from this location would be taxable.

To learn more, contact a member of our state and local tax team with questions about your sales tax compliance.

But that’s not my car!

In a recent Arkansas Admin ruling, a taxpayers was held responsible for sales tax on a¬†vehicle that they no longer own. The seller repossessed the taxpayer’s car and it was later found that the car was never registered in Arkansas. The taxpayer insisted that the car was not in their possession for more than 30 days. Unfortunately the State of Arkansas stated that based on the governing statutes the fact that possession of the vehicle was taken creates a tax liability.

Contact our state and local tax team for more information on this and other similar SALT issues.