# Arkansas economic nexus threshold

Arkansas's economic nexus threshold is $100,000 in taxable sales or 200 transactions.

## Included transactions:

- Taxable sales of tangible personal property delivered into Arkansas
- Taxable services, digital codes, and specified digital products
- Each invoice counts as one transaction, even if paid in installments

## Excluded transactions:

- Sales made through a registered marketplace facilitator count toward the facilitator's threshold, not toward the threshold of a business selling on the business's behalf.
- Only direct sales made outside any marketplace platform count toward a seller's own threshold.

## Affiliate nexus

Arkansas formerly recognized affiliate nexus under [ACA § 26-52-110](https://law.justia.com/codes/arkansas/title-26/subtitle-5/chapter-52/subchapter-1/section-26-52-110/). That provision was [explicitly repealed effective July 1, 2019](https://www.arkleg.state.ar.us/Home/FTPDocument?path=%2FACTS%2F2019R%2FPublic%2FACT822.pdf), the same date economic nexus took effect under Act 822 of 2019 (SB 576). The Arkansas Department of Finance and Administration's fiscal analysis stated the affiliate nexus provisions were ["likely no longer needed"](https://arkleg.state.ar.us/Home/FTPDocument?path=%2FAssembly%2F2019%2F2019R%2FFiscal+Impacts%2FSB576-DFA3.pdf) with economic nexus in place. There is no affiliate nexus law currently in effect in Arkansas for sales tax purposes.

## Physical nexus

Arkansas physical nexus is governed by the ["doing business"](https://law.justia.com/codes/arkansas/title-26/subtitle-5/chapter-52/subchapter-1/section-26-52-103/) standard under [ACA § 26-52-103](https://www.dfa.arkansas.gov/wp-content/uploads/et2008_3-1.pdf) and the ["regular and persistent"](https://www.dfa.arkansas.gov/wp-content/uploads/et2008_3-1.pdf) business activity test codified in Rules GR-3 and GR-5. Presence triggers include maintaining a store, salesroom, sample room, showroom, distribution center, warehouse, storage point, service center, factory, credit or collection office, administrative office, or research facility in the state. [Employing or retaining any person in Arkansas](https://regulations.justia.com/states/arkansas/agency-006/division-05/gross-receipts-tax-rules/rule-006-05-06-005-gr-5/) regardless of role, also establishes physical nexus, as does soliciting or generating sales while physically present, delivering goods in seller-owned vehicles, or storing seller-controlled inventory in a third-party warehouse where the seller directs the movement of that inventory. Third-party warehouse arrangements where the third party controls inventory movement do not create physical nexus, nor does attending a trade show without soliciting sales.

## Trailing nexus

Arkansas has not published a [formal trailing nexus regulation](https://www.dfa.arkansas.gov/office/taxes/excise-tax-administration/sales-use-tax/remote-sellers/). For economic nexus, a seller that falls below both thresholds may cancel its registration, but cancellation must be formal and affirmative. There is no inactive status. For physical nexus, the ["regularly and persistently pursued"](https://www.dfa.arkansas.gov/wp-content/uploads/et2008_3-1.pdf) language in Rule GR-3 implies nexus ceases once all physical activities legitimately terminate, but no fixed trailing period has been codified.

### Economic Nexus Threshold:

$100,000 in taxable sales OR 200 transactions (either triggers)

### Effective Date:

July 1, 2019

### Evaluation Period:

Current or immediately preceding calendar year. Collection begins on the very next transaction after crossing.

### Previous Threshold Rules:

Arkansas had no economic nexus rule before Wayfair. Prior to July 1, 2019, the state relied on physical presence only.