Arkansas Code Title 26. Taxation § 26-52-303. Border cities or towns--Tax rate--Exemptions

(1) An Arkansas city or incorporated town is divided by a state line from an incorporated city or town in an adjoining state;

(2) The city or town in the adjoining state is of greater population than the Arkansas city or town;

(3) A tax imposed in the adjoining state is in the nature of a selective sales tax or limited to specific items as a special excise tax; and

(4) The border city has voted to levy an additional one-percent gross receipts tax in the city in lieu of paying state income taxes by individuals who are residents of the city as authorized by § 26-52-601 et seq.

(c)(1) The Secretary of the Department of Finance and Administration shall require any person claiming this exemption to file a sworn statement in writing that the person is a resident of that city or incorporated town and such other information as the secretary may determine is necessary to establish the residence of the person.

(2) Upon conviction, a person filing a false statement or otherwise falsely obtaining or assisting another person to falsely obtain the benefits of the exemption authorized in this section is guilty of a violation and shall be fined in a sum of not less than one hundred dollars ($100) nor more than five hundred dollars ($500).