Ark. Code Ann. § 26-52-302 — AR Code / Title 26 / Chapter 52 / Subchapter 3 / Section 26-52-302
Additional taxes levied
Status: in_force

(a) (1) In addition to the excise tax levied upon the gross proceeds or gross receipts derived from all sales by this chapter, except for food and food ingredients that are taxed under § 26-52-317 and except for used motor vehicles, trailers, and semitrailers that are taxed under § 26-52-324 , there is levied an excise tax of one percent (1%) upon all taxable sales of property, specified digital products, digital codes, and services subject to the tax levied in this chapter. (2) This tax shall be collected, reported, and paid in the same manner and at the same time as is prescribed by law for the collection, reporting, and payment of all other Arkansas gross receipts taxes. (3) In computing gross receipts or gross proceeds as defined in § 26-52-103 , a deduction shall be allowed for bad debts resulting from the sale of tangible personal property. (b) (1) In addition to the excise tax levied upon the gross proceeds or gross receipts derived from all sales by this chapter, except for food and food ingredients that are taxed under § 26-52-317 and except for used motor vehicles, trailers, and semitrailers that are taxed under § 26-52-324 , there is hereby levied an excise tax of one-half of one percent (0.5%) upon all taxable sales of property, specified digital products, digital codes, and services subject to the tax levied in this chapter. (2) This tax shall be collected, reported, and paid in the same manner and at the same time as is prescribed by law for the collection, reporting, and payment of all other Arkansas gross receipts taxes. (3) However, in computing gross receipts or gross proceeds as defined in § 26-52-103 , a deduction shall be allowed for bad debts resulting from the sale of tangible personal property. (c) (1) Except for food and food ingredients that are taxed under § 26-52-317 and except for used motor vehicles, trailers, and semitrailers that are taxed under § 26-52-324 , there is levied an additional excise tax of one-half of one percent (0.5%) upon all taxable sales of property, specified digital products, digital codes, and services subject to the tax levied by this chapter. (2) The tax shall be collected, reported, and paid in the same manner and at the same time as is prescribed by this chapter, for the collection, reporting, and payment of Arkansas gross receipts taxes. (d) (1) Except for food and food ingredients that are taxed under § 26-52-317 and except for used motor vehicles, trailers, and semitrailers that are taxed under § 26-52-324 , there is levied an additional excise tax of seven-eighths of one percent (0.875%) upon all taxable sales of property, specified digital products, digital codes, and services subject to the tax levied by this chapter. (2) The tax shall be collected, reported, and paid in the same manner and at the same time as prescribed by this chapter, for the collection, reporting, and payment of Arkansas gross receipts taxes. Amended by Act 2021, No. 1013,§ 2, eff. 1/1/2022. Amended by Act 2017, No. 141,§ 17, eff. for tax years beginning on and after 1/1/2018. Acts 1971, No. 214, § 2; 1979, No. 401, § 48; 1983 (1st Ex. Sess.), No. 63, § 1; A.S.A. 1947, § 84-1903.1; Acts 1991, No. 3, § 1; 1999, No. 1492, § 3; 2000 (2nd Ex. Sess.), Nos. 1 and 2, § 8; 2003 (2nd Ex. Sess.), No. 107, § 1; 2007, No. 110, § 4.

(a) (1) In addition to the excise tax levied upon the gross proceeds or gross receipts derived from all sales by this chapter, except for food and food ingredients that are taxed under § 26-52-317 and except for used motor vehicles, trailers, and semitrailers that are taxed under § 26-52-324 , there is levied an excise tax of one percent (1%) upon all taxable sales of property, specified digital products, digital codes, and services subject to the tax levied in this chapter. (2) This tax shall be collected, reported, and paid in the same manner and at the same time as is prescribed by law for the collection, reporting, and payment of all other Arkansas gross receipts taxes. (3) In computing gross receipts or gross proceeds as defined in § 26-52-103 , a deduction shall be allowed for bad debts resulting from the sale of tangible personal property.

(1) In addition to the excise tax levied upon the gross proceeds or gross receipts derived from all sales by this chapter, except for food and food ingredients that are taxed under § 26-52-317 and except for used motor vehicles, trailers, and semitrailers that are taxed under § 26-52-324 , there is levied an excise tax of one percent (1%) upon all taxable sales of property, specified digital products, digital codes, and services subject to the tax levied in this chapter.

(2) This tax shall be collected, reported, and paid in the same manner and at the same time as is prescribed by law for the collection, reporting, and payment of all other Arkansas gross receipts taxes.

(3) In computing gross receipts or gross proceeds as defined in § 26-52-103 , a deduction shall be allowed for bad debts resulting from the sale of tangible personal property.

(b) (1) In addition to the excise tax levied upon the gross proceeds or gross receipts derived from all sales by this chapter, except for food and food ingredients that are taxed under § 26-52-317 and except for used motor vehicles, trailers, and semitrailers that are taxed under § 26-52-324 , there is hereby levied an excise tax of one-half of one percent (0.5%) upon all taxable sales of property, specified digital products, digital codes, and services subject to the tax levied in this chapter. (2) This tax shall be collected, reported, and paid in the same manner and at the same time as is prescribed by law for the collection, reporting, and payment of all other Arkansas gross receipts taxes. (3) However, in computing gross receipts or gross proceeds as defined in § 26-52-103 , a deduction shall be allowed for bad debts resulting from the sale of tangible personal property.

(1) In addition to the excise tax levied upon the gross proceeds or gross receipts derived from all sales by this chapter, except for food and food ingredients that are taxed under § 26-52-317 and except for used motor vehicles, trailers, and semitrailers that are taxed under § 26-52-324 , there is hereby levied an excise tax of one-half of one percent (0.5%) upon all taxable sales of property, specified digital products, digital codes, and services subject to the tax levied in this chapter.

(2) This tax shall be collected, reported, and paid in the same manner and at the same time as is prescribed by law for the collection, reporting, and payment of all other Arkansas gross receipts taxes.

(3) However, in computing gross receipts or gross proceeds as defined in § 26-52-103 , a deduction shall be allowed for bad debts resulting from the sale of tangible personal property.

(c) (1) Except for food and food ingredients that are taxed under § 26-52-317 and except for used motor vehicles, trailers, and semitrailers that are taxed under § 26-52-324 , there is levied an additional excise tax of one-half of one percent (0.5%) upon all taxable sales of property, specified digital products, digital codes, and services subject to the tax levied by this chapter. (2) The tax shall be collected, reported, and paid in the same manner and at the same time as is prescribed by this chapter, for the collection, reporting, and payment of Arkansas gross receipts taxes.

(1) Except for food and food ingredients that are taxed under § 26-52-317 and except for used motor vehicles, trailers, and semitrailers that are taxed under § 26-52-324 , there is levied an additional excise tax of one-half of one percent (0.5%) upon all taxable sales of property, specified digital products, digital codes, and services subject to the tax levied by this chapter.

(2) The tax shall be collected, reported, and paid in the same manner and at the same time as is prescribed by this chapter, for the collection, reporting, and payment of Arkansas gross receipts taxes.

(d) (1) Except for food and food ingredients that are taxed under § 26-52-317 and except for used motor vehicles, trailers, and semitrailers that are taxed under § 26-52-324 , there is levied an additional excise tax of seven-eighths of one percent (0.875%) upon all taxable sales of property, specified digital products, digital codes, and services subject to the tax levied by this chapter. (2) The tax shall be collected, reported, and paid in the same manner and at the same time as prescribed by this chapter, for the collection, reporting, and payment of Arkansas gross receipts taxes.

(1) Except for food and food ingredients that are taxed under § 26-52-317 and except for used motor vehicles, trailers, and semitrailers that are taxed under § 26-52-324 , there is levied an additional excise tax of seven-eighths of one percent (0.875%) upon all taxable sales of property, specified digital products, digital codes, and services subject to the tax levied by this chapter.

(2) The tax shall be collected, reported, and paid in the same manner and at the same time as prescribed by this chapter, for the collection, reporting, and payment of Arkansas gross receipts taxes.

Amended by Act 2021, No. 1013,§ 2, eff. 1/1/2022.

Amended by Act 2017, No. 141,§ 17, eff. for tax years beginning on and after 1/1/2018.

Acts 1971, No. 214, § 2; 1979, No. 401, § 48; 1983 (1st Ex. Sess.), No. 63, § 1; A.S.A. 1947, § 84-1903.1; Acts 1991, No. 3, § 1; 1999, No. 1492, § 3; 2000 (2nd Ex. Sess.), Nos. 1 and 2, § 8; 2003 (2nd Ex. Sess.), No. 107, § 1; 2007, No. 110, § 4.
Ark. Code Ann. § 26-59-111 — AR Code / Title 26 / Chapter 59 / Section 26-59-111
Estate tax return - Extension of filing time
Status: in_force

(a) Any person who requests and receives an extension of time in which to file a federal estate tax return, as provided by 26 U.S.C. § 6081 , as amended and in effect on January 1, 2002, shall be granted an extension of time in which to file the Arkansas estate tax return for the same period of time as granted for the filing of the federal estate tax return. (b) This request for extension of time in which to file shall be granted by the timely filing of a copy of the federal application form with the Secretary of the Department of Finance and Administration and then attaching to the Arkansas estate tax return, when actually filed with the secretary, a copy of the document granting such federal extension. (c) The secretary shall assess interest at the rate of ten percent (10%) per annum on the amount of estate tax finally determined to be due from the date the estate tax return was originally due to be filed. Amended by Act 2019, No. 910,§ 4281, eff. 7/1/2019. Acts 1941, No. 136, § 22; 1979, No. 401, § 48; 1983, No. 379, § 20; A.S.A. 1947, § 63-121; Acts 1999, No. 1126, § 42; 2003, No. 645, § 5.

(a) Any person who requests and receives an extension of time in which to file a federal estate tax return, as provided by 26 U.S.C. § 6081 , as amended and in effect on January 1, 2002, shall be granted an extension of time in which to file the Arkansas estate tax return for the same period of time as granted for the filing of the federal estate tax return.

(b) This request for extension of time in which to file shall be granted by the timely filing of a copy of the federal application form with the Secretary of the Department of Finance and Administration and then attaching to the Arkansas estate tax return, when actually filed with the secretary, a copy of the document granting such federal extension.

(c) The secretary shall assess interest at the rate of ten percent (10%) per annum on the amount of estate tax finally determined to be due from the date the estate tax return was originally due to be filed.

Amended by Act 2019, No. 910,§ 4281, eff. 7/1/2019.

Acts 1941, No. 136, § 22; 1979, No. 401, § 48; 1983, No. 379, § 20; A.S.A. 1947, § 63-121; Acts 1999, No. 1126, § 42; 2003, No. 645, § 5.
Ark. Code Ann. § 26-55-1202 — AR Code / Title 26 / Chapter 55 / Subchapter 12 / Section 26-55-1202
Additional funds deposited into State Treasury
Status: in_force

(a) All of the additional taxes, fees, penalties, and interest collected under the provisions of this subchapter and §§ 26-55-710 , 26-56-214 , and 26-56-304 shall be classified as special revenues and shall be deposited into the State Treasury. After deducting therefrom the amount to be credited to the Constitutional Officers Fund and the State Central Services Fund as provided in the Revenue Stabilization Law, § 19-5-101 et seq., the Treasurer of State shall transfer on the last business day of each month: (1) Fifteen percent (15%) of the amount thereof to the County Aid Fund; (2) Fifteen percent (15%) of the amount thereof to the Municipal Aid Fund; and (3) Seventy percent (70%) of the amount thereof to a special account in the State Highway and Transportation Department Fund to be designated the "1991 Highway Construction and Maintenance Account". (b) The funds in the 1991 Highway Construction and Maintenance Account shall be held, managed, and used in the same manner and for the same purposes as set out in the Arkansas Highway Revenue Distribution Law, § 27-70-201 et seq., excluding however, § 27-70-206 . (c) Provided that, in keeping with the spirit of Pub. L. No. 97-424, § 105, and the State Highway Commission's goals for encouraging the participation of disadvantaged business enterprises in entering into and performing contracts with the commission, including the purchasing of supplies and equipment by the commission and for the construction, reconstruction, and maintenance of highways and bridges in the state highway system, the commission is authorized to expend up to ten percent (10%) of the total funds and revenues available and disbursed to the commission pursuant to this act for the purposes of achieving those goals. Acts 1991, No. 364, § 5; 1991, No. 382, § 5; 1991, No. 1040, §§ 5-8; 1991, No. 1239, §§ 5-8.

(a) All of the additional taxes, fees, penalties, and interest collected under the provisions of this subchapter and §§ 26-55-710 , 26-56-214 , and 26-56-304 shall be classified as special revenues and shall be deposited into the State Treasury. After deducting therefrom the amount to be credited to the Constitutional Officers Fund and the State Central Services Fund as provided in the Revenue Stabilization Law, § 19-5-101 et seq., the Treasurer of State shall transfer on the last business day of each month: (1) Fifteen percent (15%) of the amount thereof to the County Aid Fund; (2) Fifteen percent (15%) of the amount thereof to the Municipal Aid Fund; and (3) Seventy percent (70%) of the amount thereof to a special account in the State Highway and Transportation Department Fund to be designated the "1991 Highway Construction and Maintenance Account".

(1) Fifteen percent (15%) of the amount thereof to the County Aid Fund;

(2) Fifteen percent (15%) of the amount thereof to the Municipal Aid Fund; and

(3) Seventy percent (70%) of the amount thereof to a special account in the State Highway and Transportation Department Fund to be designated the "1991 Highway Construction and Maintenance Account".

(b) The funds in the 1991 Highway Construction and Maintenance Account shall be held, managed, and used in the same manner and for the same purposes as set out in the Arkansas Highway Revenue Distribution Law, § 27-70-201 et seq., excluding however, § 27-70-206 .

(c) Provided that, in keeping with the spirit of Pub. L. No. 97-424, § 105, and the State Highway Commission's goals for encouraging the participation of disadvantaged business enterprises in entering into and performing contracts with the commission, including the purchasing of supplies and equipment by the commission and for the construction, reconstruction, and maintenance of highways and bridges in the state highway system, the commission is authorized to expend up to ten percent (10%) of the total funds and revenues available and disbursed to the commission pursuant to this act for the purposes of achieving those goals.

Acts 1991, No. 364, § 5; 1991, No. 382, § 5; 1991, No. 1040, §§ 5-8; 1991, No. 1239, §§ 5-8.
Ark. Code Ann. § 26-56-209 — AR Code / Title 26 / Chapter 56 / Subchapter 2 / Section 26-56-209
Records required - Invoices - Falsification of records
Status: in_force

(a) Every person required by law to secure a license under any motor fuel or distillate special fuel tax law shall keep records in the time and manner and subject to inspection and audit as required by the Arkansas Tax Procedure Act, § 26-18-101 et seq., for each place of business or place of storage in Arkansas, including a complete record of all distillate special fuel purchased or received and sold, delivered, or used by him or her showing for each purchase, receipt, sale, delivery, or use: (1) The date; (2) The name and address of the seller or of the persons from whom received, and if sold or delivered in bulk quantities, the name and address of the purchaser or recipient; (3) An accurate record of the number of gallons of each product used for taxable purposes with quantities measured by a meter; and (4) Inventories of distillate special fuel on hand at the end of each month at bulk storage facilities. (b) (1) For each bulk sale and delivery of distillate special fuel, whether or not subject to tax under this subchapter, the record required shall include an invoice with serial numbers printed thereon showing the name and address of both the supplier and the purchaser, and the complete information set out in subsection (a) of this section for each sale, one (1) counterpart of which shall be delivered to the purchaser and another counterpart kept by the supplier or dealer for the period of time and purpose provided in subsection (a) of this section. (2) (A) For each delivery of distillate special fuel into the fuel supply tank of a motor vehicle, the required record shall include a serially numbered invoice issued in not less than duplicate counterparts on which shall be printed or stamped with a rubber stamp the name and address of the supplier, dealer, or user making the delivery and on which shall be shown, in spaces to be provided on that invoice, the date of delivery, the number of gallons and kind of distillate special fuel so delivered, the total mileage recorded on the speedometer or hub meter of the motor vehicle into which delivered, and the motor vehicle registration number of the motor vehicle. (B) The invoice shall reflect that the tax has been paid or accounted for on each of the products delivered. (C) (i) One (1) counterpart of the invoice shall be kept by the supplier, dealer, or user making the delivery as a part of his or her record and for the period of time and purposes provided in subsection (a) of this section. (ii) Another counterpart shall be delivered to the operator of the motor vehicle and carried in the cab compartment of the motor vehicle for inspection by the Secretary of the Department of Finance and Administration or his or her representatives until the fuel it covers has been consumed. (c) (1) Every person who operates a motor vehicle that is equipped to use motor fuels taxable under the Motor Fuel Tax Law, § 26-55-201 et seq., and distillate special fuel interchangeably in the propulsion of the motor vehicle shall carry in the cab compartment of the motor vehicle for inspection by the secretary or his or her representative, not only the counterpart of the serially-numbered invoice required under subsection (b) of this section for the delivery of distillate special fuel into the fuel supply tanks of the motor vehicle but also an invoice or receipt from the seller for each delivery into the fuel supply tanks of the motor vehicle of motor fuels taxable under the Motor Fuel Tax Law, § 26-55-201 et seq., which latter invoice or receipt shall show the same information as to date of delivery, quantity, speedometer or hub meter mileage, and motor vehicle registration number as is required for the invoice covering distillate special fuel. (2) These invoices shall be carried with the motor vehicle until the kinds of fuels covered thereby have been consumed. (d) (1) On all deliveries of distillate special fuel to a user by common or contract carriers, the shipper shall stamp on the manifest or bill of lading in letters not less than one-quarter inch (1/4") high "TAX PAID" whenever the tax levied under this subchapter, other than the tax levied by § 26-56-224(b) -(f), has been paid, and "NOT FOR MOTOR VEHICLE USE" whenever the tax levied under this subchapter has not been paid or if the fuel is dyed distillate special fuel. (2) It shall be a violation of this chapter for any driver for a carrier to deliver distillate special fuel covered by a manifest or bill of lading stamped "NOT FOR MOTOR VEHICLE USE" into a tank marked "TAX-PAID SPECIAL FUELS". (e) The willful issuance of any invoice, bill of sale, or receipt which is false, untrue, or incorrect in any material particular, or the alteration or changing except for errors, or forging any invoice, bill of sale, or receipt, or any duplicate of any receipt pertaining to distillate special fuel shall constitute a violation of this chapter. Amended by Act 2019, No. 910,§ 4044, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4043, eff. 7/1/2019. Acts 1965 (1st Ex. Sess.), No. 40, ch. 2, § 6; A.S.A. 1947, § 75-1246; Acts 1987, No. 985, § 11; 1993, No. 1026, § 4; 2007, No. 87, § 5.

(a) Every person required by law to secure a license under any motor fuel or distillate special fuel tax law shall keep records in the time and manner and subject to inspection and audit as required by the Arkansas Tax Procedure Act, § 26-18-101 et seq., for each place of business or place of storage in Arkansas, including a complete record of all distillate special fuel purchased or received and sold, delivered, or used by him or her showing for each purchase, receipt, sale, delivery, or use: (1) The date; (2) The name and address of the seller or of the persons from whom received, and if sold or delivered in bulk quantities, the name and address of the purchaser or recipient; (3) An accurate record of the number of gallons of each product used for taxable purposes with quantities measured by a meter; and (4) Inventories of distillate special fuel on hand at the end of each month at bulk storage facilities.

(1) The date;

(2) The name and address of the seller or of the persons from whom received, and if sold or delivered in bulk quantities, the name and address of the purchaser or recipient;

(3) An accurate record of the number of gallons of each product used for taxable purposes with quantities measured by a meter; and

(4) Inventories of distillate special fuel on hand at the end of each month at bulk storage facilities.

(b) (1) For each bulk sale and delivery of distillate special fuel, whether or not subject to tax under this subchapter, the record required shall include an invoice with serial numbers printed thereon showing the name and address of both the supplier and the purchaser, and the complete information set out in subsection (a) of this section for each sale, one (1) counterpart of which shall be delivered to the purchaser and another counterpart kept by the supplier or dealer for the period of time and purpose provided in subsection (a) of this section. (2) (A) For each delivery of distillate special fuel into the fuel supply tank of a motor vehicle, the required record shall include a serially numbered invoice issued in not less than duplicate counterparts on which shall be printed or stamped with a rubber stamp the name and address of the supplier, dealer, or user making the delivery and on which shall be shown, in spaces to be provided on that invoice, the date of delivery, the number of gallons and kind of distillate special fuel so delivered, the total mileage recorded on the speedometer or hub meter of the motor vehicle into which delivered, and the motor vehicle registration number of the motor vehicle. (B) The invoice shall reflect that the tax has been paid or accounted for on each of the products delivered. (C) (i) One (1) counterpart of the invoice shall be kept by the supplier, dealer, or user making the delivery as a part of his or her record and for the period of time and purposes provided in subsection (a) of this section. (ii) Another counterpart shall be delivered to the operator of the motor vehicle and carried in the cab compartment of the motor vehicle for inspection by the Secretary of the Department of Finance and Administration or his or her representatives until the fuel it covers has been consumed.

(1) For each bulk sale and delivery of distillate special fuel, whether or not subject to tax under this subchapter, the record required shall include an invoice with serial numbers printed thereon showing the name and address of both the supplier and the purchaser, and the complete information set out in subsection (a) of this section for each sale, one (1) counterpart of which shall be delivered to the purchaser and another counterpart kept by the supplier or dealer for the period of time and purpose provided in subsection (a) of this section.

(2) (A) For each delivery of distillate special fuel into the fuel supply tank of a motor vehicle, the required record shall include a serially numbered invoice issued in not less than duplicate counterparts on which shall be printed or stamped with a rubber stamp the name and address of the supplier, dealer, or user making the delivery and on which shall be shown, in spaces to be provided on that invoice, the date of delivery, the number of gallons and kind of distillate special fuel so delivered, the total mileage recorded on the speedometer or hub meter of the motor vehicle into which delivered, and the motor vehicle registration number of the motor vehicle. (B) The invoice shall reflect that the tax has been paid or accounted for on each of the products delivered. (C) (i) One (1) counterpart of the invoice shall be kept by the supplier, dealer, or user making the delivery as a part of his or her record and for the period of time and purposes provided in subsection (a) of this section. (ii) Another counterpart shall be delivered to the operator of the motor vehicle and carried in the cab compartment of the motor vehicle for inspection by the Secretary of the Department of Finance and Administration or his or her representatives until the fuel it covers has been consumed.

(A) For each delivery of distillate special fuel into the fuel supply tank of a motor vehicle, the required record shall include a serially numbered invoice issued in not less than duplicate counterparts on which shall be printed or stamped with a rubber stamp the name and address of the supplier, dealer, or user making the delivery and on which shall be shown, in spaces to be provided on that invoice, the date of delivery, the number of gallons and kind of distillate special fuel so delivered, the total mileage recorded on the speedometer or hub meter of the motor vehicle into which delivered, and the motor vehicle registration number of the motor vehicle.

(B) The invoice shall reflect that the tax has been paid or accounted for on each of the products delivered.

(C) (i) One (1) counterpart of the invoice shall be kept by the supplier, dealer, or user making the delivery as a part of his or her record and for the period of time and purposes provided in subsection (a) of this section. (ii) Another counterpart shall be delivered to the operator of the motor vehicle and carried in the cab compartment of the motor vehicle for inspection by the Secretary of the Department of Finance and Administration or his or her representatives until the fuel it covers has been consumed.

(i) One (1) counterpart of the invoice shall be kept by the supplier, dealer, or user making the delivery as a part of his or her record and for the period of time and purposes provided in subsection (a) of this section.

(ii) Another counterpart shall be delivered to the operator of the motor vehicle and carried in the cab compartment of the motor vehicle for inspection by the Secretary of the Department of Finance and Administration or his or her representatives until the fuel it covers has been consumed.

(c) (1) Every person who operates a motor vehicle that is equipped to use motor fuels taxable under the Motor Fuel Tax Law, § 26-55-201 et seq., and distillate special fuel interchangeably in the propulsion of the motor vehicle shall carry in the cab compartment of the motor vehicle for inspection by the secretary or his or her representative, not only the counterpart of the serially-numbered invoice required under subsection (b) of this section for the delivery of distillate special fuel into the fuel supply tanks of the motor vehicle but also an invoice or receipt from the seller for each delivery into the fuel supply tanks of the motor vehicle of motor fuels taxable under the Motor Fuel Tax Law, § 26-55-201 et seq., which latter invoice or receipt shall show the same information as to date of delivery, quantity, speedometer or hub meter mileage, and motor vehicle registration number as is required for the invoice covering distillate special fuel. (2) These invoices shall be carried with the motor vehicle until the kinds of fuels covered thereby have been consumed.

(1) Every person who operates a motor vehicle that is equipped to use motor fuels taxable under the Motor Fuel Tax Law, § 26-55-201 et seq., and distillate special fuel interchangeably in the propulsion of the motor vehicle shall carry in the cab compartment of the motor vehicle for inspection by the secretary or his or her representative, not only the counterpart of the serially-numbered invoice required under subsection (b) of this section for the delivery of distillate special fuel into the fuel supply tanks of the motor vehicle but also an invoice or receipt from the seller for each delivery into the fuel supply tanks of the motor vehicle of motor fuels taxable under the Motor Fuel Tax Law, § 26-55-201 et seq., which latter invoice or receipt shall show the same information as to date of delivery, quantity, speedometer or hub meter mileage, and motor vehicle registration number as is required for the invoice covering distillate special fuel.

(2) These invoices shall be carried with the motor vehicle until the kinds of fuels covered thereby have been consumed.

(d) (1) On all deliveries of distillate special fuel to a user by common or contract carriers, the shipper shall stamp on the manifest or bill of lading in letters not less than one-quarter inch (1/4") high "TAX PAID" whenever the tax levied under this subchapter, other than the tax levied by § 26-56-224(b) -(f), has been paid, and "NOT FOR MOTOR VEHICLE USE" whenever the tax levied under this subchapter has not been paid or if the fuel is dyed distillate special fuel. (2) It shall be a violation of this chapter for any driver for a carrier to deliver distillate special fuel covered by a manifest or bill of lading stamped "NOT FOR MOTOR VEHICLE USE" into a tank marked "TAX-PAID SPECIAL FUELS".

(1) On all deliveries of distillate special fuel to a user by common or contract carriers, the shipper shall stamp on the manifest or bill of lading in letters not less than one-quarter inch (1/4") high "TAX PAID" whenever the tax levied under this subchapter, other than the tax levied by § 26-56-224(b) -(f), has been paid, and "NOT FOR MOTOR VEHICLE USE" whenever the tax levied under this subchapter has not been paid or if the fuel is dyed distillate special fuel.

(2) It shall be a violation of this chapter for any driver for a carrier to deliver distillate special fuel covered by a manifest or bill of lading stamped "NOT FOR MOTOR VEHICLE USE" into a tank marked "TAX-PAID SPECIAL FUELS".

(e) The willful issuance of any invoice, bill of sale, or receipt which is false, untrue, or incorrect in any material particular, or the alteration or changing except for errors, or forging any invoice, bill of sale, or receipt, or any duplicate of any receipt pertaining to distillate special fuel shall constitute a violation of this chapter.

Amended by Act 2019, No. 910,§ 4044, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4043, eff. 7/1/2019.

Acts 1965 (1st Ex. Sess.), No. 40, ch. 2, § 6; A.S.A. 1947, § 75-1246; Acts 1987, No. 985, § 11; 1993, No. 1026, § 4; 2007, No. 87, § 5.
Ark. Code Ann. § 26-21-111 — AR Code / Title 26 / Chapter 21 / Section 26-21-111
Certification and payment of service providers and automated systems
Status: in_force

(a) The Secretary of the Department of Finance and Administration may: (1) Certify service providers and automated systems to aid in the administration of sales and use tax collections; and (2) Provide a monetary allowance to the certified service providers, certified automated systems, and to sellers that do not have a requirement to register to collect the gross receipts tax levied by the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., or the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq. (b) (1) A certified service provider or model 2 seller using a certified automated system is not liable to the State of Arkansas or its local jurisdictions for charging and collecting the incorrect amount of sales or use tax. (2) The relief from liability provided in this section is not available to a certified service provider or model 2 seller that has incorrectly classified an item or transaction into a product category certified by the state. (3) (A) If the Department of Finance and Administration determines that an item or transaction is incorrectly classified as to its taxability, it shall notify the certified service provider or model 2 seller of the incorrect classification. (B) The certified service provider or model 2 seller shall have ten (10) days to revise the classification after receipt of the notice. (C) Upon the expiration of ten (10) days, the certified service provider or model 2 seller is liable for the failure to collect the correct amount of sales or use tax due. (c) A certified service provider has the same relief from liability as sellers provided in § 26-21-107 . Amended by Act 2019, No. 910,§ 3679, eff. 7/1/2019. Acts 2005, No. 2163, § 1; 2007, No. 181, § 9; 2011, No. 291, § 7.

(a) The Secretary of the Department of Finance and Administration may: (1) Certify service providers and automated systems to aid in the administration of sales and use tax collections; and (2) Provide a monetary allowance to the certified service providers, certified automated systems, and to sellers that do not have a requirement to register to collect the gross receipts tax levied by the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., or the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq.

(1) Certify service providers and automated systems to aid in the administration of sales and use tax collections; and

(2) Provide a monetary allowance to the certified service providers, certified automated systems, and to sellers that do not have a requirement to register to collect the gross receipts tax levied by the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., or the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq.

(b) (1) A certified service provider or model 2 seller using a certified automated system is not liable to the State of Arkansas or its local jurisdictions for charging and collecting the incorrect amount of sales or use tax. (2) The relief from liability provided in this section is not available to a certified service provider or model 2 seller that has incorrectly classified an item or transaction into a product category certified by the state. (3) (A) If the Department of Finance and Administration determines that an item or transaction is incorrectly classified as to its taxability, it shall notify the certified service provider or model 2 seller of the incorrect classification. (B) The certified service provider or model 2 seller shall have ten (10) days to revise the classification after receipt of the notice. (C) Upon the expiration of ten (10) days, the certified service provider or model 2 seller is liable for the failure to collect the correct amount of sales or use tax due.

(1) A certified service provider or model 2 seller using a certified automated system is not liable to the State of Arkansas or its local jurisdictions for charging and collecting the incorrect amount of sales or use tax.

(2) The relief from liability provided in this section is not available to a certified service provider or model 2 seller that has incorrectly classified an item or transaction into a product category certified by the state.

(3) (A) If the Department of Finance and Administration determines that an item or transaction is incorrectly classified as to its taxability, it shall notify the certified service provider or model 2 seller of the incorrect classification. (B) The certified service provider or model 2 seller shall have ten (10) days to revise the classification after receipt of the notice. (C) Upon the expiration of ten (10) days, the certified service provider or model 2 seller is liable for the failure to collect the correct amount of sales or use tax due.

(A) If the Department of Finance and Administration determines that an item or transaction is incorrectly classified as to its taxability, it shall notify the certified service provider or model 2 seller of the incorrect classification.

(B) The certified service provider or model 2 seller shall have ten (10) days to revise the classification after receipt of the notice.

(C) Upon the expiration of ten (10) days, the certified service provider or model 2 seller is liable for the failure to collect the correct amount of sales or use tax due.

(c) A certified service provider has the same relief from liability as sellers provided in § 26-21-107 .

Amended by Act 2019, No. 910,§ 3679, eff. 7/1/2019.

Acts 2005, No. 2163, § 1; 2007, No. 181, § 9; 2011, No. 291, § 7.
Ark. Code Ann. § 26-73-202 — AR Code / Title 26 / Chapter 73 / Subchapter 2 / Section 26-73-202
Certification of tax rate to county clerk
Status: in_force

The council of any municipal corporation on or before the time fixed by law for levying county taxes may make out and certify to the county clerk the rate of taxation levied by the municipal corporation on the real and personal property within the city or town. The amount so certified shall be placed upon the tax book by the county clerk of the county and collected in the same manner that state and county taxes are collected. Acts 1875, No. 1, § 64, p. 1; 1883, No. 106, § 1, p. 189; C. & M. Dig., § 7576; Pope's Dig., § 9655; A.S.A. 1947, § 19-4501.

The council of any municipal corporation on or before the time fixed by law for levying county taxes may make out and certify to the county clerk the rate of taxation levied by the municipal corporation on the real and personal property within the city or town. The amount so certified shall be placed upon the tax book by the county clerk of the county and collected in the same manner that state and county taxes are collected.

Acts 1875, No. 1, § 64, p. 1; 1883, No. 106, § 1, p. 189; C. & M. Dig., § 7576; Pope's Dig., § 9655; A.S.A. 1947, § 19-4501.
Ark. Code Ann. § 26-5-102 — AR Code / Title 26 / Chapter 5 / Section 26-5-102
Election to report tax on basis of volume percentage
Status: in_force

(a) Every taxpayer required to file an income tax return pursuant to provisions of the Income Tax Act of 1929, § 26-51-101 et seq., whose only activity within this state consists of sales and does not include owning or renting real estate or tangible personal property in this state and whose dollar volume of gross sales made during the last year within the State of Arkansas or its subdivisions, as the case may be, is not in excess of one hundred thousand dollars ($100,000) may elect to report any tax due the State of Arkansas on the basis of a percentage of this volume, and the Secretary of the Department of Finance and Administration is authorized to adopt rates which are calculated to produce a tax thereon which reasonably approximates the tax otherwise due under the laws of this state from these taxpayers. (b) In the event the Multistate Tax Commission shall adjust the one-hundred-thousand-dollar figure provided in this section in the manner authorized in the Multistate Tax Compact, § 26-5-101 , the adjusted figure shall replace the one-hundred-thousand-dollar figure provided in this section. Amended by Act 2019, No. 910,§ 3587, eff. 7/1/2019. Acts 1967, No. 410, § 2; A.S.A. 1947, § 84-4102.

(a) Every taxpayer required to file an income tax return pursuant to provisions of the Income Tax Act of 1929, § 26-51-101 et seq., whose only activity within this state consists of sales and does not include owning or renting real estate or tangible personal property in this state and whose dollar volume of gross sales made during the last year within the State of Arkansas or its subdivisions, as the case may be, is not in excess of one hundred thousand dollars ($100,000) may elect to report any tax due the State of Arkansas on the basis of a percentage of this volume, and the Secretary of the Department of Finance and Administration is authorized to adopt rates which are calculated to produce a tax thereon which reasonably approximates the tax otherwise due under the laws of this state from these taxpayers.

(b) In the event the Multistate Tax Commission shall adjust the one-hundred-thousand-dollar figure provided in this section in the manner authorized in the Multistate Tax Compact, § 26-5-101 , the adjusted figure shall replace the one-hundred-thousand-dollar figure provided in this section.

Amended by Act 2019, No. 910,§ 3587, eff. 7/1/2019.

Acts 1967, No. 410, § 2; A.S.A. 1947, § 84-4102.
Ark. Code Ann. § 26-52-448 — AR Code / Title 26 / Chapter 52 / Subchapter 4 / Section 26-52-448
Dental appliances - Definition
Status: in_force

(a) The gross receipts or gross proceeds derived from the sale of a dental appliance to or by a dentist, orthodontist, oral surgeon, maxillofacial surgeon, or endodontist are exempt from the gross receipts tax levied by this chapter, and the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq. (b) As used in this section, "dental appliance" means a dental device that is made for a specific patient, including without limitation a dental implant, orthodontic appliance, retainer, crown, bridge, or denture. Added by Act 2013, No. 1414,§ 1, eff. 7/1/2014.

(a) The gross receipts or gross proceeds derived from the sale of a dental appliance to or by a dentist, orthodontist, oral surgeon, maxillofacial surgeon, or endodontist are exempt from the gross receipts tax levied by this chapter, and the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq.

(b) As used in this section, "dental appliance" means a dental device that is made for a specific patient, including without limitation a dental implant, orthodontic appliance, retainer, crown, bridge, or denture.

Added by Act 2013, No. 1414,§ 1, eff. 7/1/2014.
Ark. Code Ann. § 26-51-1801 — AR Code / Title 26 / Chapter 51 / Subchapter 18 / Section 26-51-1801
Small business stock capital gains - Definitions
Status: in_force

(a) There shall be allowed a deduction from net income for a qualified small business net capital gain recognized on the sale of qualified small business stock for any taxable year in an amount equal to the following: (1) For qualified small business stock held for a period of five (5) years from the date of the purchase of the stock, fifty percent (50%); (2) For qualified small business stock held for a period of six (6) years from the purchase of the stock, sixty percent (60%); (3) For qualified small business stock held for a period of seven (7) years from the purchase of the stock, seventy percent (70%); (4) For qualified small business stock held for a period of eight (8) years from the purchase of the stock, eighty percent (80%); (5) For qualified small business stock held for a period of nine (9) years from the purchase of the stock, ninety percent (90%); and (6) For qualified small business stock held for a period of ten (10) years from the purchase of the stock, one hundred percent (100%). (b) As used in this subchapter: (1) "Qualified small business" means any domestic corporation whose total capitalization does not exceed one hundred million dollars ($100,000,000) and no more than ten percent (10%) of the firm's assets are held in the form of real estate during the holding periods set forth in subsection (a) of this section; (2) "Qualified small business net capital gain" means the net capital gain for the taxable year determined by taking into account only gain or loss from sales or exchanges of qualified small business stock; and (3) "Qualified small business stock" means stock issued directly by a qualified small business after December 31, 1998. (c) Any taxpayer who seeks to qualify for the income tax deduction set forth in this section must: (1) Obtain a certified statement from the corporation issuing the qualified business stock stating: (i) The name and address of the purchaser; (ii) The number of shares of qualified small business stock purchased; (iii) The amount paid by the original purchaser for the qualified small business stock; and (iv) The dates of purchase and sale of the qualified small business stock; and (2) Attach a copy of the statement described in subdivision (c)(1) of this section to the income tax return for the year the deduction is claimed. Acts 1997, No. 883, § 1.

(a) There shall be allowed a deduction from net income for a qualified small business net capital gain recognized on the sale of qualified small business stock for any taxable year in an amount equal to the following: (1) For qualified small business stock held for a period of five (5) years from the date of the purchase of the stock, fifty percent (50%); (2) For qualified small business stock held for a period of six (6) years from the purchase of the stock, sixty percent (60%); (3) For qualified small business stock held for a period of seven (7) years from the purchase of the stock, seventy percent (70%); (4) For qualified small business stock held for a period of eight (8) years from the purchase of the stock, eighty percent (80%); (5) For qualified small business stock held for a period of nine (9) years from the purchase of the stock, ninety percent (90%); and (6) For qualified small business stock held for a period of ten (10) years from the purchase of the stock, one hundred percent (100%).

(1) For qualified small business stock held for a period of five (5) years from the date of the purchase of the stock, fifty percent (50%);

(2) For qualified small business stock held for a period of six (6) years from the purchase of the stock, sixty percent (60%);

(3) For qualified small business stock held for a period of seven (7) years from the purchase of the stock, seventy percent (70%);

(4) For qualified small business stock held for a period of eight (8) years from the purchase of the stock, eighty percent (80%);

(5) For qualified small business stock held for a period of nine (9) years from the purchase of the stock, ninety percent (90%); and

(6) For qualified small business stock held for a period of ten (10) years from the purchase of the stock, one hundred percent (100%).

(b) As used in this subchapter: (1) "Qualified small business" means any domestic corporation whose total capitalization does not exceed one hundred million dollars ($100,000,000) and no more than ten percent (10%) of the firm's assets are held in the form of real estate during the holding periods set forth in subsection (a) of this section; (2) "Qualified small business net capital gain" means the net capital gain for the taxable year determined by taking into account only gain or loss from sales or exchanges of qualified small business stock; and (3) "Qualified small business stock" means stock issued directly by a qualified small business after December 31, 1998.

(1) "Qualified small business" means any domestic corporation whose total capitalization does not exceed one hundred million dollars ($100,000,000) and no more than ten percent (10%) of the firm's assets are held in the form of real estate during the holding periods set forth in subsection (a) of this section;

(2) "Qualified small business net capital gain" means the net capital gain for the taxable year determined by taking into account only gain or loss from sales or exchanges of qualified small business stock; and

(3) "Qualified small business stock" means stock issued directly by a qualified small business after December 31, 1998.

(c) Any taxpayer who seeks to qualify for the income tax deduction set forth in this section must: (1) Obtain a certified statement from the corporation issuing the qualified business stock stating: (i) The name and address of the purchaser; (ii) The number of shares of qualified small business stock purchased; (iii) The amount paid by the original purchaser for the qualified small business stock; and (iv) The dates of purchase and sale of the qualified small business stock; and (2) Attach a copy of the statement described in subdivision (c)(1) of this section to the income tax return for the year the deduction is claimed.

(1) Obtain a certified statement from the corporation issuing the qualified business stock stating: (i) The name and address of the purchaser; (ii) The number of shares of qualified small business stock purchased; (iii) The amount paid by the original purchaser for the qualified small business stock; and (iv) The dates of purchase and sale of the qualified small business stock; and

(i) The name and address of the purchaser;

(ii) The number of shares of qualified small business stock purchased;

(iii) The amount paid by the original purchaser for the qualified small business stock; and

(iv) The dates of purchase and sale of the qualified small business stock; and

(2) Attach a copy of the statement described in subdivision (c)(1) of this section to the income tax return for the year the deduction is claimed.

Acts 1997, No. 883, § 1.
Ark. Code Ann. § 26-26-404 — AR Code / Title 26 / Chapter 26 / Subchapter 4 / Section 26-26-404
Computation and certification form
Status: in_force

(a) (1) The governing body of each taxing unit in the base year of countywide reassessment shall complete the following form and return the form to the county clerk on or before the third Monday in November of the base year, using certified data provided by the county clerk as described in § 26-26-402 . (2) The form shall be signed by the officers of the governing body of each taxing unit. (b) (1) If newly discovered and new construction properties are less than a ten percent (10%) increase in assessments, the governing body of each taxing unit may elect to increase the rolled back millage an amount to allow no more than an overall ten percent (10%) increase in taxes. (2) If the newly discovered and new construction property list is ten percent (10%) or more above reassessment total, the total amount is allowed; however, no increase in the rolled back millage shall be considered. (c) Each tax source or millage levy shall be computed and rounded up to the nearest one-tenth ( 1 / 10 ) mill. (d) The county clerk shall file and record the completed forms required in § 26-26-403 and this section and shall forward a copy of the forms to the Assessment Coordination Division by December 1 of the base year. Click here to view form. CERTIFICATION: Signatures ___________________________ ___________________________ ___________________________ Acts 1981, No. 848, § 3; A.S.A. 1947, § 84-493.2.

(a) (1) The governing body of each taxing unit in the base year of countywide reassessment shall complete the following form and return the form to the county clerk on or before the third Monday in November of the base year, using certified data provided by the county clerk as described in § 26-26-402 . (2) The form shall be signed by the officers of the governing body of each taxing unit.

(1) The governing body of each taxing unit in the base year of countywide reassessment shall complete the following form and return the form to the county clerk on or before the third Monday in November of the base year, using certified data provided by the county clerk as described in § 26-26-402 .

(2) The form shall be signed by the officers of the governing body of each taxing unit.

(b) (1) If newly discovered and new construction properties are less than a ten percent (10%) increase in assessments, the governing body of each taxing unit may elect to increase the rolled back millage an amount to allow no more than an overall ten percent (10%) increase in taxes. (2) If the newly discovered and new construction property list is ten percent (10%) or more above reassessment total, the total amount is allowed; however, no increase in the rolled back millage shall be considered.

(1) If newly discovered and new construction properties are less than a ten percent (10%) increase in assessments, the governing body of each taxing unit may elect to increase the rolled back millage an amount to allow no more than an overall ten percent (10%) increase in taxes.

(2) If the newly discovered and new construction property list is ten percent (10%) or more above reassessment total, the total amount is allowed; however, no increase in the rolled back millage shall be considered.

(c) Each tax source or millage levy shall be computed and rounded up to the nearest one-tenth ( 1 / 10 ) mill.

(d) The county clerk shall file and record the completed forms required in § 26-26-403 and this section and shall forward a copy of the forms to the Assessment Coordination Division by December 1 of the base year. Click here to view form. CERTIFICATION: Signatures ___________________________ ___________________________ ___________________________

Click here to view form.

CERTIFICATION: Signatures ___________________________ ___________________________ ___________________________

CERTIFICATION:

Signatures

___________________________

Acts 1981, No. 848, § 3; A.S.A. 1947, § 84-493.2.

26_404_1 - Attachment
Ark. Code Ann. § 26-51-313 — AR Code / Title 26 / Chapter 51 / Subchapter 3 / Section 26-51-313
Qualified drop-in biofuels manufacturing exemption - Definitions
Status: in_force

(a) There is allowed an exemption from the income tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., for the period of time determined under subsection (b) of this section for a qualified drop-in biofuels manufacturer. (b) The number of years that an income tax exemption is allowed under this section is calculated as follows: (1) (A) Multiply the proposed average hourly wage to be paid by the qualified drop-in biofuels manufacturer by two thousand eighty (2,080) hours. (B) Multiply the product obtained under subdivision (b)(1)(A) of this section by the number of jobs to be created by the qualified drop-in biofuels manufacturer to determine the proposed annual payroll; (2) (A) Multiply one hundred ten percent (110%) of the state's average hourly wage from the preceding calendar year by two thousand eighty (2,080) hours. (B) Multiply the product obtained under subdivision (b)(2)(A) of this section by one thousand (1,000); (3) Divide the product calculated under subdivision (b)(1) of this section by the product calculated under subdivision (b)(2) of this section; (4) Multiply the quotient calculated under subdivision (b)(3) of this section by six-tenths (0.6) to determine the weighting factor for payroll; (5) Divide the proposed investment of the qualified drop-in biofuels manufacturer by two hundred fifty million dollars ($250,000,000); (6) Multiply the quotient calculated under subdivision (b)(5) of this section by four-tenths (0.4) to determine the weighting factor for investment; (7) Add the product calculated under subdivision (b)(4) of this section to the product calculated under subdivision (b)(6) of this section; and (8) (A) Multiply the sum calculated under subdivision (b)(7) of this section by twenty (20) and round to the nearest whole number. (B) The number calculated under subdivision (b)(8)(A) of this section is the number of years that the income tax exemption is allowed for the qualified drop-in biofuels manufacturer. (C) However, an income tax exemption allowed under this section shall not exceed twenty (20) years. (c) As used in this section: (1) "Drop-in biofuels" means a liquid motor fuel that: (A) Is a substitute for conventional petroleum-based motor fuel; (B) Is completely interchangeable and compatible with conventional petroleum-based motor fuel; (C) Does not require modification of conventional engine fuel systems; and (D) Can be delivered through the existing fuel distribution systems, including without limitation: (i) Intrastate and interstate petroleum pipelines; and (ii) Existing gasoline and diesel fuel pumps; and (2) "Qualified drop-in biofuels manufacturer" means a person or entity that: (A) Manufactures drop-in biofuels; (B) Invests at least twenty million dollars ($20,000,000) in a new or expanded drop-in biofuels manufacturing facility; (C) Creates at least one hundred (100) new jobs; (D) If the new or expanded drop-in biofuels manufacturing facility is a subsidiary of an existing Arkansas company, establishes the new or expanded drop-in biofuels facility as a separate legal entity; (E) Locates the new or expanded drop-in biofuels facility in the state after January 1, 2013, but before June 30, 2023; and (F) Signs a financial incentive agreement with the Arkansas Economic Development Commission after January 1, 2013, but before June 30, 2023. (d) The ability to qualify for an income tax exemption under this section expires June 30, 2023. Added by Act 2013, No. 1418,§ 1, eff. for tax years beginning on and after January 1, 2013.

(a) There is allowed an exemption from the income tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., for the period of time determined under subsection (b) of this section for a qualified drop-in biofuels manufacturer.

(b) The number of years that an income tax exemption is allowed under this section is calculated as follows: (1) (A) Multiply the proposed average hourly wage to be paid by the qualified drop-in biofuels manufacturer by two thousand eighty (2,080) hours. (B) Multiply the product obtained under subdivision (b)(1)(A) of this section by the number of jobs to be created by the qualified drop-in biofuels manufacturer to determine the proposed annual payroll; (2) (A) Multiply one hundred ten percent (110%) of the state's average hourly wage from the preceding calendar year by two thousand eighty (2,080) hours. (B) Multiply the product obtained under subdivision (b)(2)(A) of this section by one thousand (1,000); (3) Divide the product calculated under subdivision (b)(1) of this section by the product calculated under subdivision (b)(2) of this section; (4) Multiply the quotient calculated under subdivision (b)(3) of this section by six-tenths (0.6) to determine the weighting factor for payroll; (5) Divide the proposed investment of the qualified drop-in biofuels manufacturer by two hundred fifty million dollars ($250,000,000); (6) Multiply the quotient calculated under subdivision (b)(5) of this section by four-tenths (0.4) to determine the weighting factor for investment; (7) Add the product calculated under subdivision (b)(4) of this section to the product calculated under subdivision (b)(6) of this section; and (8) (A) Multiply the sum calculated under subdivision (b)(7) of this section by twenty (20) and round to the nearest whole number. (B) The number calculated under subdivision (b)(8)(A) of this section is the number of years that the income tax exemption is allowed for the qualified drop-in biofuels manufacturer. (C) However, an income tax exemption allowed under this section shall not exceed twenty (20) years.

(1) (A) Multiply the proposed average hourly wage to be paid by the qualified drop-in biofuels manufacturer by two thousand eighty (2,080) hours. (B) Multiply the product obtained under subdivision (b)(1)(A) of this section by the number of jobs to be created by the qualified drop-in biofuels manufacturer to determine the proposed annual payroll;

(A) Multiply the proposed average hourly wage to be paid by the qualified drop-in biofuels manufacturer by two thousand eighty (2,080) hours.

(B) Multiply the product obtained under subdivision (b)(1)(A) of this section by the number of jobs to be created by the qualified drop-in biofuels manufacturer to determine the proposed annual payroll;

(2) (A) Multiply one hundred ten percent (110%) of the state's average hourly wage from the preceding calendar year by two thousand eighty (2,080) hours. (B) Multiply the product obtained under subdivision (b)(2)(A) of this section by one thousand (1,000);

(A) Multiply one hundred ten percent (110%) of the state's average hourly wage from the preceding calendar year by two thousand eighty (2,080) hours.

(B) Multiply the product obtained under subdivision (b)(2)(A) of this section by one thousand (1,000);

(3) Divide the product calculated under subdivision (b)(1) of this section by the product calculated under subdivision (b)(2) of this section;

(4) Multiply the quotient calculated under subdivision (b)(3) of this section by six-tenths (0.6) to determine the weighting factor for payroll;

(5) Divide the proposed investment of the qualified drop-in biofuels manufacturer by two hundred fifty million dollars ($250,000,000);

(6) Multiply the quotient calculated under subdivision (b)(5) of this section by four-tenths (0.4) to determine the weighting factor for investment;

(7) Add the product calculated under subdivision (b)(4) of this section to the product calculated under subdivision (b)(6) of this section; and

(8) (A) Multiply the sum calculated under subdivision (b)(7) of this section by twenty (20) and round to the nearest whole number. (B) The number calculated under subdivision (b)(8)(A) of this section is the number of years that the income tax exemption is allowed for the qualified drop-in biofuels manufacturer. (C) However, an income tax exemption allowed under this section shall not exceed twenty (20) years.

(A) Multiply the sum calculated under subdivision (b)(7) of this section by twenty (20) and round to the nearest whole number.

(B) The number calculated under subdivision (b)(8)(A) of this section is the number of years that the income tax exemption is allowed for the qualified drop-in biofuels manufacturer.

(C) However, an income tax exemption allowed under this section shall not exceed twenty (20) years.

(c) As used in this section: (1) "Drop-in biofuels" means a liquid motor fuel that: (A) Is a substitute for conventional petroleum-based motor fuel; (B) Is completely interchangeable and compatible with conventional petroleum-based motor fuel; (C) Does not require modification of conventional engine fuel systems; and (D) Can be delivered through the existing fuel distribution systems, including without limitation: (i) Intrastate and interstate petroleum pipelines; and (ii) Existing gasoline and diesel fuel pumps; and (2) "Qualified drop-in biofuels manufacturer" means a person or entity that: (A) Manufactures drop-in biofuels; (B) Invests at least twenty million dollars ($20,000,000) in a new or expanded drop-in biofuels manufacturing facility; (C) Creates at least one hundred (100) new jobs; (D) If the new or expanded drop-in biofuels manufacturing facility is a subsidiary of an existing Arkansas company, establishes the new or expanded drop-in biofuels facility as a separate legal entity; (E) Locates the new or expanded drop-in biofuels facility in the state after January 1, 2013, but before June 30, 2023; and (F) Signs a financial incentive agreement with the Arkansas Economic Development Commission after January 1, 2013, but before June 30, 2023.

(1) "Drop-in biofuels" means a liquid motor fuel that: (A) Is a substitute for conventional petroleum-based motor fuel; (B) Is completely interchangeable and compatible with conventional petroleum-based motor fuel; (C) Does not require modification of conventional engine fuel systems; and (D) Can be delivered through the existing fuel distribution systems, including without limitation: (i) Intrastate and interstate petroleum pipelines; and (ii) Existing gasoline and diesel fuel pumps; and

(A) Is a substitute for conventional petroleum-based motor fuel;

(B) Is completely interchangeable and compatible with conventional petroleum-based motor fuel;

(C) Does not require modification of conventional engine fuel systems; and

(D) Can be delivered through the existing fuel distribution systems, including without limitation: (i) Intrastate and interstate petroleum pipelines; and (ii) Existing gasoline and diesel fuel pumps; and

(i) Intrastate and interstate petroleum pipelines; and

(ii) Existing gasoline and diesel fuel pumps; and

(2) "Qualified drop-in biofuels manufacturer" means a person or entity that: (A) Manufactures drop-in biofuels; (B) Invests at least twenty million dollars ($20,000,000) in a new or expanded drop-in biofuels manufacturing facility; (C) Creates at least one hundred (100) new jobs; (D) If the new or expanded drop-in biofuels manufacturing facility is a subsidiary of an existing Arkansas company, establishes the new or expanded drop-in biofuels facility as a separate legal entity; (E) Locates the new or expanded drop-in biofuels facility in the state after January 1, 2013, but before June 30, 2023; and (F) Signs a financial incentive agreement with the Arkansas Economic Development Commission after January 1, 2013, but before June 30, 2023.

(A) Manufactures drop-in biofuels;

(B) Invests at least twenty million dollars ($20,000,000) in a new or expanded drop-in biofuels manufacturing facility;

(C) Creates at least one hundred (100) new jobs;

(D) If the new or expanded drop-in biofuels manufacturing facility is a subsidiary of an existing Arkansas company, establishes the new or expanded drop-in biofuels facility as a separate legal entity;

(E) Locates the new or expanded drop-in biofuels facility in the state after January 1, 2013, but before June 30, 2023; and

(F) Signs a financial incentive agreement with the Arkansas Economic Development Commission after January 1, 2013, but before June 30, 2023.

(d) The ability to qualify for an income tax exemption under this section expires June 30, 2023.

Added by Act 2013, No. 1418,§ 1, eff. for tax years beginning on and after January 1, 2013.
Ark. Code Ann. § 26-38-204 — AR Code / Title 26 / Chapter 38 / Subchapter 2 / Section 26-38-204
Additional parties to suit - Decree
Status: in_force

(a) A person, firm, corporation, or improvement district claiming an interest in a parcel of real property adverse to the plaintiff under § 26-38-202 shall join or be made a party and shall have the interest adjudicated in a suit under this subchapter. (b) If a person, firm, corporation, or improvement district claims that the conveyance of real property to the plaintiff was void, the person, firm, corporation, or improvement district shall tender to the clerk of the circuit court the amount of taxes, penalties, interest, and costs due and owing on the real property. (c) (1) If the person, firm, corporation, or improvement district made a party defendant to the proceeding under this section establishes a superior claim to all or part of the real property, the decree of the circuit court shall: (A) Be rendered in favor of the party defendant, with respect to the affected real property; (B) Order the defendant to pay all taxes, penalties, interest, and costs due on the affected real property; (C) Order the Commissioner of State Lands to issue a deed of redemption to the party defendant for the affected real property; and (D) Set aside the transfer from the state to the purchaser, donee, or redemptor of the affected real property. (2) If the party defendant fails to establish a valid defense, an order so stating will be entered, and the party defendant will be allowed to recover the funds tendered to the clerk under subsection (b) of this section. Acts 1993, No. 646, § 3; 2011, No. 1133, § 4.

(a) A person, firm, corporation, or improvement district claiming an interest in a parcel of real property adverse to the plaintiff under § 26-38-202 shall join or be made a party and shall have the interest adjudicated in a suit under this subchapter.

(b) If a person, firm, corporation, or improvement district claims that the conveyance of real property to the plaintiff was void, the person, firm, corporation, or improvement district shall tender to the clerk of the circuit court the amount of taxes, penalties, interest, and costs due and owing on the real property.

(c) (1) If the person, firm, corporation, or improvement district made a party defendant to the proceeding under this section establishes a superior claim to all or part of the real property, the decree of the circuit court shall: (A) Be rendered in favor of the party defendant, with respect to the affected real property; (B) Order the defendant to pay all taxes, penalties, interest, and costs due on the affected real property; (C) Order the Commissioner of State Lands to issue a deed of redemption to the party defendant for the affected real property; and (D) Set aside the transfer from the state to the purchaser, donee, or redemptor of the affected real property. (2) If the party defendant fails to establish a valid defense, an order so stating will be entered, and the party defendant will be allowed to recover the funds tendered to the clerk under subsection (b) of this section.

(1) If the person, firm, corporation, or improvement district made a party defendant to the proceeding under this section establishes a superior claim to all or part of the real property, the decree of the circuit court shall: (A) Be rendered in favor of the party defendant, with respect to the affected real property; (B) Order the defendant to pay all taxes, penalties, interest, and costs due on the affected real property; (C) Order the Commissioner of State Lands to issue a deed of redemption to the party defendant for the affected real property; and (D) Set aside the transfer from the state to the purchaser, donee, or redemptor of the affected real property.

(A) Be rendered in favor of the party defendant, with respect to the affected real property;

(B) Order the defendant to pay all taxes, penalties, interest, and costs due on the affected real property;

(C) Order the Commissioner of State Lands to issue a deed of redemption to the party defendant for the affected real property; and

(D) Set aside the transfer from the state to the purchaser, donee, or redemptor of the affected real property.

(2) If the party defendant fails to establish a valid defense, an order so stating will be entered, and the party defendant will be allowed to recover the funds tendered to the clerk under subsection (b) of this section.

Acts 1993, No. 646, § 3; 2011, No. 1133, § 4.
Ark. Code Ann. § 26-51-512 — AR Code / Title 26 / Chapter 51 / Subchapter 5 / Section 26-51-512
Rice straw tax credit - Definitions
Status: in_force

(a) As used in this section: (1) "End user" means a person who purchases and uses rice straw for processing, manufacturing, generating energy, or producing ethanol; and (2) "Rice straw" means the dry stems of rice left after the seed heads have been removed. (b) (1) There is allowed a credit against the income tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., in the amount of fifteen dollars ($15.00) for each ton of rice straw over five hundred (500) tons that is purchased by an Arkansas taxpayer who is the end user. (2) The amount of credit that may be used by the taxpayer for a taxable year may not exceed fifty percent (50%) of the amount of income tax due for that tax year. (3) Any unused credit may be carried forward for ten (10) consecutive tax years following the tax year the credit was earned. (c) A taxpayer who claims a credit under this section shall not claim any other state tax credit or deduction for the purchase of rice straw. Acts 2005, No. 2247, § 1.

(a) As used in this section: (1) "End user" means a person who purchases and uses rice straw for processing, manufacturing, generating energy, or producing ethanol; and (2) "Rice straw" means the dry stems of rice left after the seed heads have been removed.

(1) "End user" means a person who purchases and uses rice straw for processing, manufacturing, generating energy, or producing ethanol; and

(2) "Rice straw" means the dry stems of rice left after the seed heads have been removed.

(b) (1) There is allowed a credit against the income tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., in the amount of fifteen dollars ($15.00) for each ton of rice straw over five hundred (500) tons that is purchased by an Arkansas taxpayer who is the end user. (2) The amount of credit that may be used by the taxpayer for a taxable year may not exceed fifty percent (50%) of the amount of income tax due for that tax year. (3) Any unused credit may be carried forward for ten (10) consecutive tax years following the tax year the credit was earned.

(1) There is allowed a credit against the income tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., in the amount of fifteen dollars ($15.00) for each ton of rice straw over five hundred (500) tons that is purchased by an Arkansas taxpayer who is the end user.

(2) The amount of credit that may be used by the taxpayer for a taxable year may not exceed fifty percent (50%) of the amount of income tax due for that tax year.

(3) Any unused credit may be carried forward for ten (10) consecutive tax years following the tax year the credit was earned.

(c) A taxpayer who claims a credit under this section shall not claim any other state tax credit or deduction for the purchase of rice straw.

Acts 2005, No. 2247, § 1.
Ark. Code Ann. § 26-56-309 — AR Code / Title 26 / Chapter 56 / Subchapter 3 / Section 26-56-309
Reports by dealers
Status: in_force

Every liquefied gas special fuels dealer on or before the twenty-fifth day of the month shall monthly file a report with the Secretary of the Department of Finance and Administration for the preceding calendar month showing: (1) All liquefied gas special fuels sold, delivered, or used by the dealer, whether the liquified gas special fuels are sold or delivered for a taxable or nontaxable use; (2) The name and address of the purchasers; (3) The quantity purchased by each; and (4) In the case of liquefied gas special fuels delivered into the supply tanks of vehicles on which the flat fee provided in this subchapter has been paid, the name, address, and vehicle license number of the purchaser. Amended by Act 2019, No. 910,§ 4086, eff. 7/1/2019. Acts 1965 (1st Ex. Sess.), No. 40, ch. 3, § 8; A.S.A. 1947, § 75-1261.

Every liquefied gas special fuels dealer on or before the twenty-fifth day of the month shall monthly file a report with the Secretary of the Department of Finance and Administration for the preceding calendar month showing:

(1) All liquefied gas special fuels sold, delivered, or used by the dealer, whether the liquified gas special fuels are sold or delivered for a taxable or nontaxable use;

(2) The name and address of the purchasers;

(3) The quantity purchased by each; and

(4) In the case of liquefied gas special fuels delivered into the supply tanks of vehicles on which the flat fee provided in this subchapter has been paid, the name, address, and vehicle license number of the purchaser.

Amended by Act 2019, No. 910,§ 4086, eff. 7/1/2019.

Acts 1965 (1st Ex. Sess.), No. 40, ch. 3, § 8; A.S.A. 1947, § 75-1261.
Ark. Code Ann. § 26-51-1702 — AR Code / Title 26 / Chapter 51 / Subchapter 17 / Section 26-51-1702
Allowance and calculation of tax credit
Status: in_force

(a) A taxpayer owning an interest in a qualified project shall be allowed a state tax credit, to be termed the Arkansas low-income housing tax credit, if the Arkansas Development Finance Authority issues an eligibility statement for that project. For any taxpayer which is, for state income tax purposes, taxed as a partnership or an S corporation, the tax credits allocated to the taxpayer shall be allocated to each partner, member or shareholder of the taxpayer in accordance with the provisions of the articles of incorporation, bylaws, partnership agreement, operating agreement or other agreement setting forth such allocation. (b) The Arkansas low-income housing tax credit available to a qualified project shall be calculated by multiplying an amount equal to the federal low-income housing tax credit for a qualified project for a federal tax period, by twenty percent (20%) and such amount shall be subtracted from the amount of state income or premium tax otherwise due from the taxpayer for the same tax period. (c) The Arkansas low-income housing tax credit shall be taken against the state income or premium taxes due from the taxpayer. The credit authorized by this subchapter shall not be refundable. Any amount of credit that exceeds the tax due for a taxable year may be carried forward to any of the five (5) subsequent taxable years or carried forward to any of the five (5) subsequent taxable years. (d) All or any portion of the Arkansas low-income housing tax credits may be allocated to parties who are eligible under the provisions of subsection (a) of this section. An owner of a qualified project shall certify to the Secretary of the Department of Finance and Administration the amount of the Arkansas low-income housing tax credit allocated to each taxpayer. (e) In the event that recapture of Arkansas low-income housing tax credits is required pursuant to § 26-51-1703(b) , any statement submitted to the secretary as provided in this section shall include the proportion of the Arkansas low-income housing tax credit required to be recaptured, the identity of each taxpayer subject to the recapture and the amount of Arkansas low-income housing tax credit previously allocated to such taxpayer. (f) The total amount of tax credit granted under this subchapter shall not exceed two hundred fifty thousand dollars ($250,000) in any taxable year. (g) (1) A grant payment made under § 1602 of the American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5, is excluded from gross income if the grant payment is made in lieu of a federal low-income housing tax credit. (2) The grant recipient shall comply with the requirements of this subchapter in the same manner as if the grant recipient had received a federal low-income housing tax credit. Amended by Act 2019, No. 910,§ 3791, eff. 7/1/2019. Acts 1997, No. 1332, § 2; 2011, No. 787, § 35.

(a) A taxpayer owning an interest in a qualified project shall be allowed a state tax credit, to be termed the Arkansas low-income housing tax credit, if the Arkansas Development Finance Authority issues an eligibility statement for that project. For any taxpayer which is, for state income tax purposes, taxed as a partnership or an S corporation, the tax credits allocated to the taxpayer shall be allocated to each partner, member or shareholder of the taxpayer in accordance with the provisions of the articles of incorporation, bylaws, partnership agreement, operating agreement or other agreement setting forth such allocation.

(b) The Arkansas low-income housing tax credit available to a qualified project shall be calculated by multiplying an amount equal to the federal low-income housing tax credit for a qualified project for a federal tax period, by twenty percent (20%) and such amount shall be subtracted from the amount of state income or premium tax otherwise due from the taxpayer for the same tax period.

(c) The Arkansas low-income housing tax credit shall be taken against the state income or premium taxes due from the taxpayer. The credit authorized by this subchapter shall not be refundable. Any amount of credit that exceeds the tax due for a taxable year may be carried forward to any of the five (5) subsequent taxable years or carried forward to any of the five (5) subsequent taxable years.

(d) All or any portion of the Arkansas low-income housing tax credits may be allocated to parties who are eligible under the provisions of subsection (a) of this section. An owner of a qualified project shall certify to the Secretary of the Department of Finance and Administration the amount of the Arkansas low-income housing tax credit allocated to each taxpayer.

(e) In the event that recapture of Arkansas low-income housing tax credits is required pursuant to § 26-51-1703(b) , any statement submitted to the secretary as provided in this section shall include the proportion of the Arkansas low-income housing tax credit required to be recaptured, the identity of each taxpayer subject to the recapture and the amount of Arkansas low-income housing tax credit previously allocated to such taxpayer.

(f) The total amount of tax credit granted under this subchapter shall not exceed two hundred fifty thousand dollars ($250,000) in any taxable year.

(g) (1) A grant payment made under § 1602 of the American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5, is excluded from gross income if the grant payment is made in lieu of a federal low-income housing tax credit. (2) The grant recipient shall comply with the requirements of this subchapter in the same manner as if the grant recipient had received a federal low-income housing tax credit.

(1) A grant payment made under § 1602 of the American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5, is excluded from gross income if the grant payment is made in lieu of a federal low-income housing tax credit.

(2) The grant recipient shall comply with the requirements of this subchapter in the same manner as if the grant recipient had received a federal low-income housing tax credit.

Amended by Act 2019, No. 910,§ 3791, eff. 7/1/2019.

Acts 1997, No. 1332, § 2; 2011, No. 787, § 35.
Ark. Code Ann. § 26-57-408 — AR Code / Title 26 / Chapter 57 / Subchapter 4 / Section 26-57-408
Privilege of owning, operating or leasing - Privilege fee imposed
Status: in_force

(a) The business of owning, operating, or leasing coin-operated amusement devices, including, but not limited to, the coin-operated amusement devices defined in § 26-57-402 , is declared to be a privilege. (b) It is further declared that the owners, operators, and lessors of coin-operated amusement devices shall pay a fee for the privilege of owning, operating, or leasing coin-operated amusement devices in addition to the privilege tax required by § 26-57-404 to be paid on amusement devices. Acts 1977, No. 553, § 1; A.S.A. 1947, § 84-2633; Acts 2009, No. 655, § 86.

(a) The business of owning, operating, or leasing coin-operated amusement devices, including, but not limited to, the coin-operated amusement devices defined in § 26-57-402 , is declared to be a privilege.

(b) It is further declared that the owners, operators, and lessors of coin-operated amusement devices shall pay a fee for the privilege of owning, operating, or leasing coin-operated amusement devices in addition to the privilege tax required by § 26-57-404 to be paid on amusement devices.

Acts 1977, No. 553, § 1; A.S.A. 1947, § 84-2633; Acts 2009, No. 655, § 86.
Ark. Code Ann. § 26-57-603 — AR Code / Title 26 / Chapter 57 / Subchapter 6 / Section 26-57-603
Tax reports generally
Status: in_force

(a) Each authorized, each formerly authorized, and each unauthorized insurer as defined in § 23-60-102(12) shall file with the Insurance Commissioner on or before March 1 of each year a report in form as prescribed by the commissioner showing, except as to wet marine and foreign trade insurance as defined in § 26-57-605(d) , total direct premium income including policy, membership, and other fees, and all other considerations for insurance, from all kinds and classes of insurance, whether designated as premium or otherwise, written by it during the preceding calendar year on account of policies and contracts covering property, subjects, or risks located, resident, or to be performed in this state, with proper proportionate allocation of premium as to the persons, property, subjects, or risks in this state insured under policies or contracts covering persons, property, subjects, or risks located or resident in more than one (1) state, after deducting from the total direct premium income dividends and similar returns paid or credited to policyholders other than as to life insurance, applicable cancellations, returned premiums, the unabsorbed portion of any deposit premium, and the amount of reduction in, or refund of, premiums allowed to industrial life policyholders for payment of premiums directly to an office of the insurer. (b) No deduction shall be made of the cash surrender values of policies. (c) Considerations received on annuity contracts shall not be included in total direct premium income and shall not be subject to tax. (d) Each authorized, unauthorized, or formerly authorized domestic, foreign, and alien insurer shall pay to the Treasurer of State through the commissioner, as a tax imposed for the privilege of transacting business in this state, a tax upon the net premiums and net considerations, except as provided in § 26-57-605 . The tax shall be computed thereon at a rate of two and one-half percent (21/2%). The premiums written shall be reported at such times and in such form and context as prescribed by the commissioner, and the taxes shall be paid on a quarterly estimate basis as prescribed by the commissioner and shall be reconciled annually at the time of filing the annual report required in subsections (a)-(c) of this section. (e) That portion of the tax paid by an insurer in accordance with § 24-11-809 shall be separately specified in the report in such manner as may be prescribed by the commissioner to enable the commissioner to make a proper apportionment of the funds. (f) (1) A risk-based provider organization that is licensed under the Medicaid Provider-Led Organized Care Act, § 20-77-2701 et seq., and § 23-61-117 and participates in the Medicaid provider-led organized care system offered by the Arkansas Medicaid Program for enrollable Medicaid beneficiary populations as defined in § 20-77-2703 shall pay to the Treasurer of State through the commissioner a tax imposed for the privilege of transacting business in this state. (2) The tax shall be computed at a rate of two and one-half percent (21/2%) on the total amount of funds received in global payments as defined under § 20-77-2703 to a risk-based provider organization participating in the Medicaid provider-led organized care system. (3) The tax shall be: (A) Reported at such times and in such form and context as prescribed by the commissioner; and (B) Paid on a quarterly basis as prescribed by the commissioner. Amended by Act 2017, No. 775,§ 4, eff. 3/31/2017. Acts 1959, No. 148, § 69; 1968 (1st Ex. Sess.), No. 24, § 5; 1979, No. 908, § 1; 1981, No. 595, § 1; 1985, No. 804, § 6; A.S.A. 1947, § 66-2302; Acts 1987, No. 1033, § 1; 1989, No. 772, § 19.

(a) Each authorized, each formerly authorized, and each unauthorized insurer as defined in § 23-60-102(12) shall file with the Insurance Commissioner on or before March 1 of each year a report in form as prescribed by the commissioner showing, except as to wet marine and foreign trade insurance as defined in § 26-57-605(d) , total direct premium income including policy, membership, and other fees, and all other considerations for insurance, from all kinds and classes of insurance, whether designated as premium or otherwise, written by it during the preceding calendar year on account of policies and contracts covering property, subjects, or risks located, resident, or to be performed in this state, with proper proportionate allocation of premium as to the persons, property, subjects, or risks in this state insured under policies or contracts covering persons, property, subjects, or risks located or resident in more than one (1) state, after deducting from the total direct premium income dividends and similar returns paid or credited to policyholders other than as to life insurance, applicable cancellations, returned premiums, the unabsorbed portion of any deposit premium, and the amount of reduction in, or refund of, premiums allowed to industrial life policyholders for payment of premiums directly to an office of the insurer.

(b) No deduction shall be made of the cash surrender values of policies.

(c) Considerations received on annuity contracts shall not be included in total direct premium income and shall not be subject to tax.

(d) Each authorized, unauthorized, or formerly authorized domestic, foreign, and alien insurer shall pay to the Treasurer of State through the commissioner, as a tax imposed for the privilege of transacting business in this state, a tax upon the net premiums and net considerations, except as provided in § 26-57-605 . The tax shall be computed thereon at a rate of two and one-half percent (21/2%). The premiums written shall be reported at such times and in such form and context as prescribed by the commissioner, and the taxes shall be paid on a quarterly estimate basis as prescribed by the commissioner and shall be reconciled annually at the time of filing the annual report required in subsections (a)-(c) of this section.

(e) That portion of the tax paid by an insurer in accordance with § 24-11-809 shall be separately specified in the report in such manner as may be prescribed by the commissioner to enable the commissioner to make a proper apportionment of the funds.

(f) (1) A risk-based provider organization that is licensed under the Medicaid Provider-Led Organized Care Act, § 20-77-2701 et seq., and § 23-61-117 and participates in the Medicaid provider-led organized care system offered by the Arkansas Medicaid Program for enrollable Medicaid beneficiary populations as defined in § 20-77-2703 shall pay to the Treasurer of State through the commissioner a tax imposed for the privilege of transacting business in this state. (2) The tax shall be computed at a rate of two and one-half percent (21/2%) on the total amount of funds received in global payments as defined under § 20-77-2703 to a risk-based provider organization participating in the Medicaid provider-led organized care system. (3) The tax shall be: (A) Reported at such times and in such form and context as prescribed by the commissioner; and (B) Paid on a quarterly basis as prescribed by the commissioner.

(1) A risk-based provider organization that is licensed under the Medicaid Provider-Led Organized Care Act, § 20-77-2701 et seq., and § 23-61-117 and participates in the Medicaid provider-led organized care system offered by the Arkansas Medicaid Program for enrollable Medicaid beneficiary populations as defined in § 20-77-2703 shall pay to the Treasurer of State through the commissioner a tax imposed for the privilege of transacting business in this state.

(2) The tax shall be computed at a rate of two and one-half percent (21/2%) on the total amount of funds received in global payments as defined under § 20-77-2703 to a risk-based provider organization participating in the Medicaid provider-led organized care system.

(3) The tax shall be: (A) Reported at such times and in such form and context as prescribed by the commissioner; and (B) Paid on a quarterly basis as prescribed by the commissioner.

(A) Reported at such times and in such form and context as prescribed by the commissioner; and

(B) Paid on a quarterly basis as prescribed by the commissioner.

Amended by Act 2017, No. 775,§ 4, eff. 3/31/2017.

Acts 1959, No. 148, § 69; 1968 (1st Ex. Sess.), No. 24, § 5; 1979, No. 908, § 1; 1981, No. 595, § 1; 1985, No. 804, § 6; A.S.A. 1947, § 66-2302; Acts 1987, No. 1033, § 1; 1989, No. 772, § 19.
Ark. Code Ann. § 26-57-244 — AR Code / Title 26 / Chapter 57 / Subchapter 2 / Section 26-57-244
Possession of untaxed, unstamped products - Notice and prima facie evidence
Status: in_force

(a) Except as provided under § 26-57-243 , it is unlawful for a person to receive or have in the person's possession for sale, consumption, or any other purpose, any untaxed tobacco products or unstamped cigarettes unless the tax prescribed by this subchapter has been paid directly to the Secretary of the Department of Finance and Administration by the person in possession of the untaxed tobacco products or unstamped cigarettes. (b) The absence of the stamps from any container of cigarettes is notice to all persons that the tax has not been paid and is prima facie evidence of the nonpayment of the tax. (c) If tax has been paid to the secretary on any untaxed tobacco products or unstamped cigarettes, a consumer may establish proof of the payment by providing a receipt or any other documentation that clearly indicates that the tax was paid. (d) This section does not relieve any retail permit holder from the obligations placed on the retail permit holder by § 26-57-228 . (e) A retail permit holder shall not have in his or her possession any unstamped cigarettes or any tobacco products on which the tax prescribed by this subchapter has not been paid. (f) (1) Except to the extent the tobacco products are exempt under § 26-57-243 , an Arkansas consumer who purchases any untaxed tobacco products or unstamped cigarettes shall be liable for reporting and remitting all excise tax due on the tobacco products as levied under this subchapter. (2) The tax due shall be reported on forms provided by the secretary on or before the fifteenth day of the month following the month in which the untaxed purchase was made. (3) The report shall provide the information prescribed by the secretary. (4) When a report is filed, the consumer shall remit the full amount of tax due on the untaxed purchase to the secretary. (g) The secretary is authorized to directly assess the excise tax due on any untaxed tobacco products or unstamped cigarettes against a consumer who purchases the items and fails to report and remit the excise tax due in a timely manner. (h) Subsections (f) and (g) of this section are subject to the Arkansas Tax Procedure Act, § 26-18-101 et seq. (i) (1) A wholesaler may possess unstamped cigarettes for sale in or into the state if the wholesaler: (A) Is permitted to purchase, sell, and affix a stamp to the package containing the cigarettes under § 26-57-1303(c) ; and (B) Provides on at least a monthly basis and on the form prescribed by the secretary a report indicating the following for each brand family: (i) The number of cigarettes purchased during the reporting period; (ii) The number of cigarettes on which the wholesaler affixed the tax stamp prescribed by this subchapter; (iii) The number of cigarettes on which the wholesaler affixed the tax stamp or other similar indicia of taxation prescribed by another state's laws; and (iv) The number of cigarettes that remain in the wholesaler's inventory. (2) A wholesaler may possess unstamped cigarettes for sale from Arkansas into another state if the wholesaler: (A) Is permitted to purchase, sell, and affix a stamp to the package containing the cigarettes under the other state's tobacco legislation or directory law, if any; (B) Would not violate the law of the other state by selling or affixing the tax stamp; and (C) Provides on at least a monthly basis and on the form prescribed by the secretary a report indicating the following for each brand family: (i) The number of cigarettes purchased during the reporting period; (ii) The number of cigarettes on which the wholesaler affixed the tax stamp prescribed by this subchapter; (iii) The number of cigarettes on which the wholesaler affixed the tax stamp or other similar indicia of taxation prescribed by another state's laws; and (iv) The number of cigarettes that remain in the wholesaler's inventory. (3) (A) (i) Except as provided in § 26-57-242 , a wholesaler may transfer, transport, or cause to be transported unstamped cigarettes that the wholesaler owns and is permitted to possess from one (1) of the wholesaler's facilities in Arkansas to another of the wholesaler's facilities. (ii) If the wholesaler's facility to which the cigarettes are transferred is located in Arkansas, the applicable time period for affixing a stamp remains in effect and continues to run from the date of the wholesaler's original receipt of the cigarettes. (iii) If the wholesaler's facility to which the cigarettes are transferred is located outside of Arkansas, the wholesaler shall report the quantity and brand of the cigarettes to the secretary, the Attorney General, and the taxing authority of the other state within fifteen (15) days following the end of the month in which the transfer was made. (B) A stamp deputy may not transfer cigarettes from Arkansas into another state if the transfer would violate the law of the other state. (j) (1) A common carrier or contract carrier may possess and transport unstamped cigarettes in connection with a sale or other transfer permitted under this subchapter if the common carrier or contract carrier has in its possession: (A) Documents establishing that title to the unstamped cigarettes remains with the manufacturer, importer, or wholesaler; or (B) Bills of lading or other shipping documents establishing that the common carrier or contract carrier is delivering the cigarettes on behalf of a person authorized to sell or transfer the unstamped cigarettes under this subchapter. (2) The documents required under subdivision (j)(1) of this section shall list the name and address of the person to whom the cigarettes are being delivered. (k) A manufacturer or importer and the contractor, agent, common carrier, or contract carrier of a manufacturer or importer may possess, transport, or cause to be transported unstamped cigarettes in, into, or from the state for use in connection with consumer testing permitted under the laws of the state in which the testing is to be done if the: (1) Cigarettes are not currently commercially marketed in the United States; (2) Manufacturer pays applicable state excise taxes on the cigarettes; (3) Nonparticipating manufacturer, if any, deposits the necessary escrow on the cigarettes under § 26-57-261 ; (4) Participating manufacturer, if any, includes the cigarettes in the participating manufacturer's volume for purposes of the Master Settlement Agreement, as defined in § 26-57-260 ; (5) Cigarettes are provided at no cost to the consumer testing participants; and (6) Cigarettes used by a manufacturer or importer for consumer testing do not exceed a reasonable quantity. Amended by Act 2019, No. 1071,§ 20, eff. 7/24/2019. Amended by Act 2019, No. 1071,§ 19, eff. 7/24/2019. Amended by Act 2019, No. 910,§ 4155, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4154, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4153, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4152, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4151, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4150, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 4149, eff. 7/1/2019. Acts 1977, No. 546, § 26; A.S.A. 1947, § 84-4526; Acts 2007, No. 817, § 2; 2011, No. 836, § 8.

(a) Except as provided under § 26-57-243 , it is unlawful for a person to receive or have in the person's possession for sale, consumption, or any other purpose, any untaxed tobacco products or unstamped cigarettes unless the tax prescribed by this subchapter has been paid directly to the Secretary of the Department of Finance and Administration by the person in possession of the untaxed tobacco products or unstamped cigarettes.

(b) The absence of the stamps from any container of cigarettes is notice to all persons that the tax has not been paid and is prima facie evidence of the nonpayment of the tax.

(c) If tax has been paid to the secretary on any untaxed tobacco products or unstamped cigarettes, a consumer may establish proof of the payment by providing a receipt or any other documentation that clearly indicates that the tax was paid.

(d) This section does not relieve any retail permit holder from the obligations placed on the retail permit holder by § 26-57-228 .

(e) A retail permit holder shall not have in his or her possession any unstamped cigarettes or any tobacco products on which the tax prescribed by this subchapter has not been paid.

(f) (1) Except to the extent the tobacco products are exempt under § 26-57-243 , an Arkansas consumer who purchases any untaxed tobacco products or unstamped cigarettes shall be liable for reporting and remitting all excise tax due on the tobacco products as levied under this subchapter. (2) The tax due shall be reported on forms provided by the secretary on or before the fifteenth day of the month following the month in which the untaxed purchase was made. (3) The report shall provide the information prescribed by the secretary. (4) When a report is filed, the consumer shall remit the full amount of tax due on the untaxed purchase to the secretary.

(1) Except to the extent the tobacco products are exempt under § 26-57-243 , an Arkansas consumer who purchases any untaxed tobacco products or unstamped cigarettes shall be liable for reporting and remitting all excise tax due on the tobacco products as levied under this subchapter.

(2) The tax due shall be reported on forms provided by the secretary on or before the fifteenth day of the month following the month in which the untaxed purchase was made.

(3) The report shall provide the information prescribed by the secretary.

(4) When a report is filed, the consumer shall remit the full amount of tax due on the untaxed purchase to the secretary.

(g) The secretary is authorized to directly assess the excise tax due on any untaxed tobacco products or unstamped cigarettes against a consumer who purchases the items and fails to report and remit the excise tax due in a timely manner.

(h) Subsections (f) and (g) of this section are subject to the Arkansas Tax Procedure Act, § 26-18-101 et seq.

(i) (1) A wholesaler may possess unstamped cigarettes for sale in or into the state if the wholesaler: (A) Is permitted to purchase, sell, and affix a stamp to the package containing the cigarettes under § 26-57-1303(c) ; and (B) Provides on at least a monthly basis and on the form prescribed by the secretary a report indicating the following for each brand family: (i) The number of cigarettes purchased during the reporting period; (ii) The number of cigarettes on which the wholesaler affixed the tax stamp prescribed by this subchapter; (iii) The number of cigarettes on which the wholesaler affixed the tax stamp or other similar indicia of taxation prescribed by another state's laws; and (iv) The number of cigarettes that remain in the wholesaler's inventory. (2) A wholesaler may possess unstamped cigarettes for sale from Arkansas into another state if the wholesaler: (A) Is permitted to purchase, sell, and affix a stamp to the package containing the cigarettes under the other state's tobacco legislation or directory law, if any; (B) Would not violate the law of the other state by selling or affixing the tax stamp; and (C) Provides on at least a monthly basis and on the form prescribed by the secretary a report indicating the following for each brand family: (i) The number of cigarettes purchased during the reporting period; (ii) The number of cigarettes on which the wholesaler affixed the tax stamp prescribed by this subchapter; (iii) The number of cigarettes on which the wholesaler affixed the tax stamp or other similar indicia of taxation prescribed by another state's laws; and (iv) The number of cigarettes that remain in the wholesaler's inventory. (3) (A) (i) Except as provided in § 26-57-242 , a wholesaler may transfer, transport, or cause to be transported unstamped cigarettes that the wholesaler owns and is permitted to possess from one (1) of the wholesaler's facilities in Arkansas to another of the wholesaler's facilities. (ii) If the wholesaler's facility to which the cigarettes are transferred is located in Arkansas, the applicable time period for affixing a stamp remains in effect and continues to run from the date of the wholesaler's original receipt of the cigarettes. (iii) If the wholesaler's facility to which the cigarettes are transferred is located outside of Arkansas, the wholesaler shall report the quantity and brand of the cigarettes to the secretary, the Attorney General, and the taxing authority of the other state within fifteen (15) days following the end of the month in which the transfer was made. (B) A stamp deputy may not transfer cigarettes from Arkansas into another state if the transfer would violate the law of the other state.

(1) A wholesaler may possess unstamped cigarettes for sale in or into the state if the wholesaler: (A) Is permitted to purchase, sell, and affix a stamp to the package containing the cigarettes under § 26-57-1303(c) ; and (B) Provides on at least a monthly basis and on the form prescribed by the secretary a report indicating the following for each brand family: (i) The number of cigarettes purchased during the reporting period; (ii) The number of cigarettes on which the wholesaler affixed the tax stamp prescribed by this subchapter; (iii) The number of cigarettes on which the wholesaler affixed the tax stamp or other similar indicia of taxation prescribed by another state's laws; and (iv) The number of cigarettes that remain in the wholesaler's inventory.

(A) Is permitted to purchase, sell, and affix a stamp to the package containing the cigarettes under § 26-57-1303(c) ; and

(B) Provides on at least a monthly basis and on the form prescribed by the secretary a report indicating the following for each brand family: (i) The number of cigarettes purchased during the reporting period; (ii) The number of cigarettes on which the wholesaler affixed the tax stamp prescribed by this subchapter; (iii) The number of cigarettes on which the wholesaler affixed the tax stamp or other similar indicia of taxation prescribed by another state's laws; and (iv) The number of cigarettes that remain in the wholesaler's inventory.

(i) The number of cigarettes purchased during the reporting period;

(ii) The number of cigarettes on which the wholesaler affixed the tax stamp prescribed by this subchapter;

(iii) The number of cigarettes on which the wholesaler affixed the tax stamp or other similar indicia of taxation prescribed by another state's laws; and

(iv) The number of cigarettes that remain in the wholesaler's inventory.

(2) A wholesaler may possess unstamped cigarettes for sale from Arkansas into another state if the wholesaler: (A) Is permitted to purchase, sell, and affix a stamp to the package containing the cigarettes under the other state's tobacco legislation or directory law, if any; (B) Would not violate the law of the other state by selling or affixing the tax stamp; and (C) Provides on at least a monthly basis and on the form prescribed by the secretary a report indicating the following for each brand family: (i) The number of cigarettes purchased during the reporting period; (ii) The number of cigarettes on which the wholesaler affixed the tax stamp prescribed by this subchapter; (iii) The number of cigarettes on which the wholesaler affixed the tax stamp or other similar indicia of taxation prescribed by another state's laws; and (iv) The number of cigarettes that remain in the wholesaler's inventory.

(A) Is permitted to purchase, sell, and affix a stamp to the package containing the cigarettes under the other state's tobacco legislation or directory law, if any;

(B) Would not violate the law of the other state by selling or affixing the tax stamp; and

(C) Provides on at least a monthly basis and on the form prescribed by the secretary a report indicating the following for each brand family: (i) The number of cigarettes purchased during the reporting period; (ii) The number of cigarettes on which the wholesaler affixed the tax stamp prescribed by this subchapter; (iii) The number of cigarettes on which the wholesaler affixed the tax stamp or other similar indicia of taxation prescribed by another state's laws; and (iv) The number of cigarettes that remain in the wholesaler's inventory.

(i) The number of cigarettes purchased during the reporting period;

(ii) The number of cigarettes on which the wholesaler affixed the tax stamp prescribed by this subchapter;

(iii) The number of cigarettes on which the wholesaler affixed the tax stamp or other similar indicia of taxation prescribed by another state's laws; and

(iv) The number of cigarettes that remain in the wholesaler's inventory.

(3) (A) (i) Except as provided in § 26-57-242 , a wholesaler may transfer, transport, or cause to be transported unstamped cigarettes that the wholesaler owns and is permitted to possess from one (1) of the wholesaler's facilities in Arkansas to another of the wholesaler's facilities. (ii) If the wholesaler's facility to which the cigarettes are transferred is located in Arkansas, the applicable time period for affixing a stamp remains in effect and continues to run from the date of the wholesaler's original receipt of the cigarettes. (iii) If the wholesaler's facility to which the cigarettes are transferred is located outside of Arkansas, the wholesaler shall report the quantity and brand of the cigarettes to the secretary, the Attorney General, and the taxing authority of the other state within fifteen (15) days following the end of the month in which the transfer was made. (B) A stamp deputy may not transfer cigarettes from Arkansas into another state if the transfer would violate the law of the other state.

(A) (i) Except as provided in § 26-57-242 , a wholesaler may transfer, transport, or cause to be transported unstamped cigarettes that the wholesaler owns and is permitted to possess from one (1) of the wholesaler's facilities in Arkansas to another of the wholesaler's facilities. (ii) If the wholesaler's facility to which the cigarettes are transferred is located in Arkansas, the applicable time period for affixing a stamp remains in effect and continues to run from the date of the wholesaler's original receipt of the cigarettes. (iii) If the wholesaler's facility to which the cigarettes are transferred is located outside of Arkansas, the wholesaler shall report the quantity and brand of the cigarettes to the secretary, the Attorney General, and the taxing authority of the other state within fifteen (15) days following the end of the month in which the transfer was made.

(i) Except as provided in § 26-57-242 , a wholesaler may transfer, transport, or cause to be transported unstamped cigarettes that the wholesaler owns and is permitted to possess from one (1) of the wholesaler's facilities in Arkansas to another of the wholesaler's facilities.

(ii) If the wholesaler's facility to which the cigarettes are transferred is located in Arkansas, the applicable time period for affixing a stamp remains in effect and continues to run from the date of the wholesaler's original receipt of the cigarettes.

(iii) If the wholesaler's facility to which the cigarettes are transferred is located outside of Arkansas, the wholesaler shall report the quantity and brand of the cigarettes to the secretary, the Attorney General, and the taxing authority of the other state within fifteen (15) days following the end of the month in which the transfer was made.

(B) A stamp deputy may not transfer cigarettes from Arkansas into another state if the transfer would violate the law of the other state.

(j) (1) A common carrier or contract carrier may possess and transport unstamped cigarettes in connection with a sale or other transfer permitted under this subchapter if the common carrier or contract carrier has in its possession: (A) Documents establishing that title to the unstamped cigarettes remains with the manufacturer, importer, or wholesaler; or (B) Bills of lading or other shipping documents establishing that the common carrier or contract carrier is delivering the cigarettes on behalf of a person authorized to sell or transfer the unstamped cigarettes under this subchapter. (2) The documents required under subdivision (j)(1) of this section shall list the name and address of the person to whom the cigarettes are being delivered.

(1) A common carrier or contract carrier may possess and transport unstamped cigarettes in connection with a sale or other transfer permitted under this subchapter if the common carrier or contract carrier has in its possession: (A) Documents establishing that title to the unstamped cigarettes remains with the manufacturer, importer, or wholesaler; or (B) Bills of lading or other shipping documents establishing that the common carrier or contract carrier is delivering the cigarettes on behalf of a person authorized to sell or transfer the unstamped cigarettes under this subchapter.

(A) Documents establishing that title to the unstamped cigarettes remains with the manufacturer, importer, or wholesaler; or

(B) Bills of lading or other shipping documents establishing that the common carrier or contract carrier is delivering the cigarettes on behalf of a person authorized to sell or transfer the unstamped cigarettes under this subchapter.

(2) The documents required under subdivision (j)(1) of this section shall list the name and address of the person to whom the cigarettes are being delivered.

(k) A manufacturer or importer and the contractor, agent, common carrier, or contract carrier of a manufacturer or importer may possess, transport, or cause to be transported unstamped cigarettes in, into, or from the state for use in connection with consumer testing permitted under the laws of the state in which the testing is to be done if the: (1) Cigarettes are not currently commercially marketed in the United States; (2) Manufacturer pays applicable state excise taxes on the cigarettes; (3) Nonparticipating manufacturer, if any, deposits the necessary escrow on the cigarettes under § 26-57-261 ; (4) Participating manufacturer, if any, includes the cigarettes in the participating manufacturer's volume for purposes of the Master Settlement Agreement, as defined in § 26-57-260 ; (5) Cigarettes are provided at no cost to the consumer testing participants; and (6) Cigarettes used by a manufacturer or importer for consumer testing do not exceed a reasonable quantity.

(1) Cigarettes are not currently commercially marketed in the United States;

(2) Manufacturer pays applicable state excise taxes on the cigarettes;

(3) Nonparticipating manufacturer, if any, deposits the necessary escrow on the cigarettes under § 26-57-261 ;

(4) Participating manufacturer, if any, includes the cigarettes in the participating manufacturer's volume for purposes of the Master Settlement Agreement, as defined in § 26-57-260 ;

(5) Cigarettes are provided at no cost to the consumer testing participants; and

(6) Cigarettes used by a manufacturer or importer for consumer testing do not exceed a reasonable quantity.

Amended by Act 2019, No. 1071,§ 20, eff. 7/24/2019.

Amended by Act 2019, No. 1071,§ 19, eff. 7/24/2019.

Amended by Act 2019, No. 910,§ 4155, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4154, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4153, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4152, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4151, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4150, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4149, eff. 7/1/2019.

Acts 1977, No. 546, § 26; A.S.A. 1947, § 84-4526; Acts 2007, No. 817, § 2; 2011, No. 836, § 8.
Ark. Code Ann. § 26-51-1403 — AR Code / Title 26 / Chapter 51 / Subchapter 14 / Section 26-51-1403
Receipts factor
Status: in_force

(a) Generally. (1) (A) The receipts factor is a fraction, the numerator of which is the total receipts of the taxpayer in this state during the taxable year and the denominator of which is the total receipts of the taxpayer within and without this state during the taxable year. (B) The method of calculating receipts for purposes of the denominator is the same as the method used in determining receipts for purposes of the numerator. (2) The receipts factor shall include only those receipts described herein which constitute business income and are included in the computation of the apportionable income base for the taxable year. (b) Receipts From the Lease of Real Property. The numerator of the receipts factor includes: (1) Receipts from the lease or rental of real property owned by the taxpayer if the property is located within this state; or (2) Receipts from the sublease of real property if the property is located within this state. (c) Receipts From the Lease of Tangible Personal Property. (1) Except as described in subdivision (c)(2) of this section, the numerator of the receipts factor includes receipts from the lease or rental of tangible personal property owned by the taxpayer if the property is located within this state when it is first placed in service by the lessee. (2) (A) Receipts from the lease or rental of transportation property owned by the taxpayer are included in the numerator of the receipts factor to the extent that the property is used in this state. (B) The extent an aircraft will be deemed to be used in this state and the amount of receipts that is to be included in the numerator of this state's receipts factor is determined by multiplying all the receipts from the lease or rental of the aircraft by a fraction, the numerator of which is the number of landings of the aircraft in this state and the denominator of which is the total number of landings of the aircraft. (C) If the extent of the use of any transportation property within this state cannot be determined, then the property will be deemed to be used wholly in the state in which the property has its principal base of operations. (D) A motor vehicle will be deemed to be used wholly in the state in which it is registered. (d) Interest From Loans Secured by Real Property. (1) (A) The numerator of the receipts factor includes interest and fees or penalties in the nature of interest from loans secured by real property if the property is located within this state. (B) If the property is located both within this state and one (1) or more other states, the receipts described in this subsection are included in the numerator of the receipts factor if more than fifty percent (50%) of the fair market value of the real property is located within this state. (C) If more than fifty percent (50%) of the fair market value of the real property is not located within any (1) one state, then the receipts described in this subsection shall be included in the numerator of the receipts factor if the borrower is located in this state. (2) The determination of whether the real property securing a loan is located within this state shall be made as of the time the original agreement was made, and any and all subsequent substitutions of collateral shall be disregarded. (e) Interest From Loans Not Secured by Real Property. The numerator of the receipts factor includes interest and fees or penalties in the nature of interest from loans not secured by real property if the borrower is located in this state. (f) Net Gains From the Sale of Loans. (1) The numerator of the receipts factor includes net gains from the sale of loans. Net gains from the sale of loans includes income recorded under the coupon stripping rules of 26 U.S.C. § 1286 , as in effect January 1, 1995. (2) The amount of net gains, but not less than zero (0), from the sale of loans secured by real property included in the numerator is determined by multiplying such net gains by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (d) of this section and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans secured by real property. (3) The amount of net gains, but not less than zero (0), from the sale of loans not secured by real property included in the numerator is determined by multiplying such net gains by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (e) of this section and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans not secured by real property. (g) Receipts From Credit Card Receivables. The numerator of the receipts factor includes interest and fees or penalties in the nature of interest from credit card receivables and receipts from fees charged to cardholders, such as annual fees, if the billing address of the cardholder is in this state. (h) Net Gains From the Sale of Credit Card Receivables. The numerator of the receipts factor includes net gains, but not less than zero (0), from the sale of credit card receivables multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (g) of this section and the denominator of which is the taxpayer's total amount of interest and fees or penalties in the nature of interest from credit card receivables and fees charged to card holders. (i) Credit Card Issuer's Reimbursement Fees. The numerator of the receipts factor includes all credit card issuer's reimbursement fees multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (g) of this section and the denominator of which is the taxpayer's total amount of interest and fees or penalties in the nature of interest from credit card receivables and fees charged to cardholders. (j) Receipts From Merchant Discount. The numerator of the receipts factor includes receipts from merchant discount if the commercial domicile of the merchant is in this state. Such receipts shall be computed net of any card holder charge backs, but shall not be reduced by any interchange transaction fees or by any issuer's reimbursement fees paid to another for charges made by its cardholders. (k) Loan Servicing Fees. (1) (A) The numerator of the receipts factor includes loan servicing fees derived from loans secured by real property multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (d) of this section and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans secured by real property. (B) The numerator of the receipts factor includes loan servicing fees derived from loans not secured by real property multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (e) of this section and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans not secured by real property. (2) In circumstances in which the taxpayer receives loan servicing fees for servicing either the secured or the unsecured loans of another, the numerator of the receipts factor shall include such fees if the borrower is located in this state. (l) Receipts From Services. (1) The numerator of the receipts factor includes receipts from services not otherwise apportioned under this section if the service is performed in this state. (2) If the service is performed both within and without this state, the numerator of the receipts factor includes receipts from services not otherwise apportioned under this section, if a greater proportion of the income-producing activity is performed in this state based on cost of performance. (m) Receipts From Investment Assets and Activities and Trading Assets and Activities. (1) (A) Interest, dividends, net gains, but not less than zero (0), and other income from investment assets and activities and from trading assets and activities shall be included in the receipts factor. (B) Investment assets and activities and trading assets and activities include, but are not limited to: (i) Investment securities; (ii) Trading account assets; (iii) Federal funds; (iv) Securities purchased and sold under agreements to resell or repurchase; (v) Options; (vi) Futures contracts; (vii) Forward contracts; (viii) Notional principal contracts such as swaps; (ix) Equities; and (x) Foreign currency transactions. (C) With respect to the investment and trading assets and activities described in subdivisions (m)(1)(D) and (E) of this section, the receipts factor shall include the amounts described in subdivisions (m)(1)(D) and (E) of this section. (D) The receipts factor shall include the amount by which interest from federal funds sold and securities purchased under resale agreements exceeds interest expense on federal funds purchased and securities sold under repurchase agreements. (E) The receipts factor shall include the amount by which interest, dividends, gains and other income from trading assets and activities, including, but not limited to, assets and activities in the matched book, in the arbitrage book, and foreign currency transactions, exceed amounts paid in lieu of interest, amounts paid in lieu of dividends, and losses from such assets and activities. (2) (A) The numerator of the receipts factor includes interest, dividends, net gains, but not less than zero (0), and other income from investment assets and activities and from trading assets and activities described in subdivision (m)(1) of this section that are attributable to this state. (B) The amount of interest, dividends, net gains, but not less than zero (0), and other income from investment assets and activities in the investment account to be attributed to this state and included in the numerator is determined by multiplying all such income from such assets and activities by a fraction, the numerator of which is the average value of such assets which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the average value of all such assets. (C) The amount of interest from federal funds sold and purchased and from securities purchased under resale agreements and securities sold under repurchase agreements attributable to this state and included in the numerator is determined by multiplying the amount described in subdivision (m)(1)(D) of this section from such funds and such securities by a fraction, the numerator of which is the average value of federal funds sold and securities purchased under agreements to resell which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the average value of all such funds and such securities. (D) The amount of interest, dividends, gains, and other income from trading assets and activities, including, but not limited to, assets and activities in the matched book, in the arbitrage book and in foreign currency transactions, but excluding amounts described in subdivision (m)(2)(B) or subdivision (m)(2)(C) of this section, attributable to this state and included in the numerator is determined by multiplying the amount described in subdivision (m)(1)(E) of this section by a fraction, the numerator of which is the average value of such trading assets which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the average value of all such assets. (E) For purposes of this subdivision (m)(2), average value shall be determined using the rules for determining the average value of tangible personal property set forth in § 26-51-1404(c) and (d) . (3) (A) In lieu of using the method set forth in subdivision (m)(2) of this section, the taxpayer may elect, or the Secretary of the Department of Finance and Administration may require in order to fairly represent the business activity of the taxpayer in this state, the use of the method set forth in this subdivision (m)(3). (B) The amount of interest, dividends, net gains, but not less than zero (0), and other income from investment assets and activities in the investment account to be attributed to this state and included in the numerator is determined by multiplying all such income from such assets and activities by a fraction, the numerator of which is the gross income from such assets and activities which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the gross income from all such assets and activities. (C) The amount of interest from federal funds sold and purchased and from securities purchased under resale agreements and securities sold under repurchase agreements attributable to this state and included in the numerator is determined by multiplying the amount described in subdivision (m)(1)(D) of this section from such funds and such securities by a fraction, the numerator of which is the gross income from such funds and such securities which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the gross income from all such funds and such securities. (D) The amount of interest, dividends, gains, and other income from trading assets and activities, including, but not limited to, assets and activities in the matched book, in the arbitrage book and in foreign currency transactions, but excluding amounts described in subdivision (m)(3)(B) or subdivision (m)(3)(C) of this section, attributable to this state and included in the numerator is determined by multiplying the amount described in subdivision (m)(1)(E) of this section by a fraction, the numerator of which is the gross income from such trading assets and activities which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the gross income from all such assets and activities. (4) If the taxpayer elects or is required by the secretary to use the method set forth in subdivision (m)(3) of this section, it shall use this method on all subsequent returns unless the taxpayer receives prior permission from the secretary to use, or the secretary requires, a different method. (5) The taxpayer shall have the burden of proving that an investment asset or activity or trading asset or activity was properly assigned to a regular place of business outside of this state by demonstrating that the day-to-day decisions regarding the asset or activity occurred at a regular place of business outside this state. Where the day-to-day decisions regarding an investment asset or activity or trading asset or activity occur at more than one (1) regular place of business and one (1) such regular place of business is in this state and one (1) such regular place of business is outside this state, such asset or activity shall be considered to be located at the regular place of business of the taxpayer where the investment or trading policies or guidelines with respect to the asset or activity are established. Unless the taxpayer demonstrates to the contrary, such policies and guidelines shall be presumed to be established at the commercial domicile of the taxpayer. (n) All Other Receipts. The numerator of the receipts factor includes all other receipts under the rules set out in §§ 26-51-716 and 26-51-717 . (o) Attribution of Certain Receipts to Commercial Domicile. All receipts which would be assigned under this section to a state in which the taxpayer is not taxable shall be included in the numerator of the receipts factor, if the taxpayer's commercial domicile is in this state. Amended by Act 2019, No. 822,§ 14, eff. 1/1/2021. Amended by Act 2019, No. 822,§ 13, eff. 1/1/2021. Amended by Act 2019, No. 910,§ 3785, eff. 7/1/2019. Acts 1995, No. 495, § 1.

(a) Generally. (1) (A) The receipts factor is a fraction, the numerator of which is the total receipts of the taxpayer in this state during the taxable year and the denominator of which is the total receipts of the taxpayer within and without this state during the taxable year. (B) The method of calculating receipts for purposes of the denominator is the same as the method used in determining receipts for purposes of the numerator. (2) The receipts factor shall include only those receipts described herein which constitute business income and are included in the computation of the apportionable income base for the taxable year.

(1) (A) The receipts factor is a fraction, the numerator of which is the total receipts of the taxpayer in this state during the taxable year and the denominator of which is the total receipts of the taxpayer within and without this state during the taxable year. (B) The method of calculating receipts for purposes of the denominator is the same as the method used in determining receipts for purposes of the numerator.

(A) The receipts factor is a fraction, the numerator of which is the total receipts of the taxpayer in this state during the taxable year and the denominator of which is the total receipts of the taxpayer within and without this state during the taxable year.

(B) The method of calculating receipts for purposes of the denominator is the same as the method used in determining receipts for purposes of the numerator.

(2) The receipts factor shall include only those receipts described herein which constitute business income and are included in the computation of the apportionable income base for the taxable year.

(b) Receipts From the Lease of Real Property. The numerator of the receipts factor includes: (1) Receipts from the lease or rental of real property owned by the taxpayer if the property is located within this state; or (2) Receipts from the sublease of real property if the property is located within this state.

(1) Receipts from the lease or rental of real property owned by the taxpayer if the property is located within this state; or

(2) Receipts from the sublease of real property if the property is located within this state.

(c) Receipts From the Lease of Tangible Personal Property. (1) Except as described in subdivision (c)(2) of this section, the numerator of the receipts factor includes receipts from the lease or rental of tangible personal property owned by the taxpayer if the property is located within this state when it is first placed in service by the lessee. (2) (A) Receipts from the lease or rental of transportation property owned by the taxpayer are included in the numerator of the receipts factor to the extent that the property is used in this state. (B) The extent an aircraft will be deemed to be used in this state and the amount of receipts that is to be included in the numerator of this state's receipts factor is determined by multiplying all the receipts from the lease or rental of the aircraft by a fraction, the numerator of which is the number of landings of the aircraft in this state and the denominator of which is the total number of landings of the aircraft. (C) If the extent of the use of any transportation property within this state cannot be determined, then the property will be deemed to be used wholly in the state in which the property has its principal base of operations. (D) A motor vehicle will be deemed to be used wholly in the state in which it is registered.

(1) Except as described in subdivision (c)(2) of this section, the numerator of the receipts factor includes receipts from the lease or rental of tangible personal property owned by the taxpayer if the property is located within this state when it is first placed in service by the lessee.

(2) (A) Receipts from the lease or rental of transportation property owned by the taxpayer are included in the numerator of the receipts factor to the extent that the property is used in this state. (B) The extent an aircraft will be deemed to be used in this state and the amount of receipts that is to be included in the numerator of this state's receipts factor is determined by multiplying all the receipts from the lease or rental of the aircraft by a fraction, the numerator of which is the number of landings of the aircraft in this state and the denominator of which is the total number of landings of the aircraft. (C) If the extent of the use of any transportation property within this state cannot be determined, then the property will be deemed to be used wholly in the state in which the property has its principal base of operations. (D) A motor vehicle will be deemed to be used wholly in the state in which it is registered.

(A) Receipts from the lease or rental of transportation property owned by the taxpayer are included in the numerator of the receipts factor to the extent that the property is used in this state.

(B) The extent an aircraft will be deemed to be used in this state and the amount of receipts that is to be included in the numerator of this state's receipts factor is determined by multiplying all the receipts from the lease or rental of the aircraft by a fraction, the numerator of which is the number of landings of the aircraft in this state and the denominator of which is the total number of landings of the aircraft.

(C) If the extent of the use of any transportation property within this state cannot be determined, then the property will be deemed to be used wholly in the state in which the property has its principal base of operations.

(D) A motor vehicle will be deemed to be used wholly in the state in which it is registered.

(d) Interest From Loans Secured by Real Property. (1) (A) The numerator of the receipts factor includes interest and fees or penalties in the nature of interest from loans secured by real property if the property is located within this state. (B) If the property is located both within this state and one (1) or more other states, the receipts described in this subsection are included in the numerator of the receipts factor if more than fifty percent (50%) of the fair market value of the real property is located within this state. (C) If more than fifty percent (50%) of the fair market value of the real property is not located within any (1) one state, then the receipts described in this subsection shall be included in the numerator of the receipts factor if the borrower is located in this state. (2) The determination of whether the real property securing a loan is located within this state shall be made as of the time the original agreement was made, and any and all subsequent substitutions of collateral shall be disregarded.

(1) (A) The numerator of the receipts factor includes interest and fees or penalties in the nature of interest from loans secured by real property if the property is located within this state. (B) If the property is located both within this state and one (1) or more other states, the receipts described in this subsection are included in the numerator of the receipts factor if more than fifty percent (50%) of the fair market value of the real property is located within this state. (C) If more than fifty percent (50%) of the fair market value of the real property is not located within any (1) one state, then the receipts described in this subsection shall be included in the numerator of the receipts factor if the borrower is located in this state.

(A) The numerator of the receipts factor includes interest and fees or penalties in the nature of interest from loans secured by real property if the property is located within this state.

(B) If the property is located both within this state and one (1) or more other states, the receipts described in this subsection are included in the numerator of the receipts factor if more than fifty percent (50%) of the fair market value of the real property is located within this state.

(C) If more than fifty percent (50%) of the fair market value of the real property is not located within any (1) one state, then the receipts described in this subsection shall be included in the numerator of the receipts factor if the borrower is located in this state.

(2) The determination of whether the real property securing a loan is located within this state shall be made as of the time the original agreement was made, and any and all subsequent substitutions of collateral shall be disregarded.

(e) Interest From Loans Not Secured by Real Property. The numerator of the receipts factor includes interest and fees or penalties in the nature of interest from loans not secured by real property if the borrower is located in this state.

(f) Net Gains From the Sale of Loans. (1) The numerator of the receipts factor includes net gains from the sale of loans. Net gains from the sale of loans includes income recorded under the coupon stripping rules of 26 U.S.C. § 1286 , as in effect January 1, 1995. (2) The amount of net gains, but not less than zero (0), from the sale of loans secured by real property included in the numerator is determined by multiplying such net gains by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (d) of this section and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans secured by real property. (3) The amount of net gains, but not less than zero (0), from the sale of loans not secured by real property included in the numerator is determined by multiplying such net gains by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (e) of this section and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans not secured by real property.

(1) The numerator of the receipts factor includes net gains from the sale of loans. Net gains from the sale of loans includes income recorded under the coupon stripping rules of 26 U.S.C. § 1286 , as in effect January 1, 1995.

(2) The amount of net gains, but not less than zero (0), from the sale of loans secured by real property included in the numerator is determined by multiplying such net gains by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (d) of this section and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans secured by real property.

(3) The amount of net gains, but not less than zero (0), from the sale of loans not secured by real property included in the numerator is determined by multiplying such net gains by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (e) of this section and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans not secured by real property.

(g) Receipts From Credit Card Receivables. The numerator of the receipts factor includes interest and fees or penalties in the nature of interest from credit card receivables and receipts from fees charged to cardholders, such as annual fees, if the billing address of the cardholder is in this state.

(h) Net Gains From the Sale of Credit Card Receivables. The numerator of the receipts factor includes net gains, but not less than zero (0), from the sale of credit card receivables multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (g) of this section and the denominator of which is the taxpayer's total amount of interest and fees or penalties in the nature of interest from credit card receivables and fees charged to card holders.

(i) Credit Card Issuer's Reimbursement Fees. The numerator of the receipts factor includes all credit card issuer's reimbursement fees multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (g) of this section and the denominator of which is the taxpayer's total amount of interest and fees or penalties in the nature of interest from credit card receivables and fees charged to cardholders.

(j) Receipts From Merchant Discount. The numerator of the receipts factor includes receipts from merchant discount if the commercial domicile of the merchant is in this state. Such receipts shall be computed net of any card holder charge backs, but shall not be reduced by any interchange transaction fees or by any issuer's reimbursement fees paid to another for charges made by its cardholders.

(k) Loan Servicing Fees. (1) (A) The numerator of the receipts factor includes loan servicing fees derived from loans secured by real property multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (d) of this section and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans secured by real property. (B) The numerator of the receipts factor includes loan servicing fees derived from loans not secured by real property multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (e) of this section and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans not secured by real property. (2) In circumstances in which the taxpayer receives loan servicing fees for servicing either the secured or the unsecured loans of another, the numerator of the receipts factor shall include such fees if the borrower is located in this state.

(1) (A) The numerator of the receipts factor includes loan servicing fees derived from loans secured by real property multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (d) of this section and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans secured by real property. (B) The numerator of the receipts factor includes loan servicing fees derived from loans not secured by real property multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (e) of this section and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans not secured by real property.

(A) The numerator of the receipts factor includes loan servicing fees derived from loans secured by real property multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (d) of this section and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans secured by real property.

(B) The numerator of the receipts factor includes loan servicing fees derived from loans not secured by real property multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (e) of this section and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans not secured by real property.

(2) In circumstances in which the taxpayer receives loan servicing fees for servicing either the secured or the unsecured loans of another, the numerator of the receipts factor shall include such fees if the borrower is located in this state.

(l) Receipts From Services. (1) The numerator of the receipts factor includes receipts from services not otherwise apportioned under this section if the service is performed in this state. (2) If the service is performed both within and without this state, the numerator of the receipts factor includes receipts from services not otherwise apportioned under this section, if a greater proportion of the income-producing activity is performed in this state based on cost of performance.

(1) The numerator of the receipts factor includes receipts from services not otherwise apportioned under this section if the service is performed in this state.

(2) If the service is performed both within and without this state, the numerator of the receipts factor includes receipts from services not otherwise apportioned under this section, if a greater proportion of the income-producing activity is performed in this state based on cost of performance.

(m) Receipts From Investment Assets and Activities and Trading Assets and Activities. (1) (A) Interest, dividends, net gains, but not less than zero (0), and other income from investment assets and activities and from trading assets and activities shall be included in the receipts factor. (B) Investment assets and activities and trading assets and activities include, but are not limited to: (i) Investment securities; (ii) Trading account assets; (iii) Federal funds; (iv) Securities purchased and sold under agreements to resell or repurchase; (v) Options; (vi) Futures contracts; (vii) Forward contracts; (viii) Notional principal contracts such as swaps; (ix) Equities; and (x) Foreign currency transactions. (C) With respect to the investment and trading assets and activities described in subdivisions (m)(1)(D) and (E) of this section, the receipts factor shall include the amounts described in subdivisions (m)(1)(D) and (E) of this section. (D) The receipts factor shall include the amount by which interest from federal funds sold and securities purchased under resale agreements exceeds interest expense on federal funds purchased and securities sold under repurchase agreements. (E) The receipts factor shall include the amount by which interest, dividends, gains and other income from trading assets and activities, including, but not limited to, assets and activities in the matched book, in the arbitrage book, and foreign currency transactions, exceed amounts paid in lieu of interest, amounts paid in lieu of dividends, and losses from such assets and activities. (2) (A) The numerator of the receipts factor includes interest, dividends, net gains, but not less than zero (0), and other income from investment assets and activities and from trading assets and activities described in subdivision (m)(1) of this section that are attributable to this state. (B) The amount of interest, dividends, net gains, but not less than zero (0), and other income from investment assets and activities in the investment account to be attributed to this state and included in the numerator is determined by multiplying all such income from such assets and activities by a fraction, the numerator of which is the average value of such assets which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the average value of all such assets. (C) The amount of interest from federal funds sold and purchased and from securities purchased under resale agreements and securities sold under repurchase agreements attributable to this state and included in the numerator is determined by multiplying the amount described in subdivision (m)(1)(D) of this section from such funds and such securities by a fraction, the numerator of which is the average value of federal funds sold and securities purchased under agreements to resell which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the average value of all such funds and such securities. (D) The amount of interest, dividends, gains, and other income from trading assets and activities, including, but not limited to, assets and activities in the matched book, in the arbitrage book and in foreign currency transactions, but excluding amounts described in subdivision (m)(2)(B) or subdivision (m)(2)(C) of this section, attributable to this state and included in the numerator is determined by multiplying the amount described in subdivision (m)(1)(E) of this section by a fraction, the numerator of which is the average value of such trading assets which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the average value of all such assets. (E) For purposes of this subdivision (m)(2), average value shall be determined using the rules for determining the average value of tangible personal property set forth in § 26-51-1404(c) and (d) . (3) (A) In lieu of using the method set forth in subdivision (m)(2) of this section, the taxpayer may elect, or the Secretary of the Department of Finance and Administration may require in order to fairly represent the business activity of the taxpayer in this state, the use of the method set forth in this subdivision (m)(3). (B) The amount of interest, dividends, net gains, but not less than zero (0), and other income from investment assets and activities in the investment account to be attributed to this state and included in the numerator is determined by multiplying all such income from such assets and activities by a fraction, the numerator of which is the gross income from such assets and activities which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the gross income from all such assets and activities. (C) The amount of interest from federal funds sold and purchased and from securities purchased under resale agreements and securities sold under repurchase agreements attributable to this state and included in the numerator is determined by multiplying the amount described in subdivision (m)(1)(D) of this section from such funds and such securities by a fraction, the numerator of which is the gross income from such funds and such securities which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the gross income from all such funds and such securities. (D) The amount of interest, dividends, gains, and other income from trading assets and activities, including, but not limited to, assets and activities in the matched book, in the arbitrage book and in foreign currency transactions, but excluding amounts described in subdivision (m)(3)(B) or subdivision (m)(3)(C) of this section, attributable to this state and included in the numerator is determined by multiplying the amount described in subdivision (m)(1)(E) of this section by a fraction, the numerator of which is the gross income from such trading assets and activities which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the gross income from all such assets and activities. (4) If the taxpayer elects or is required by the secretary to use the method set forth in subdivision (m)(3) of this section, it shall use this method on all subsequent returns unless the taxpayer receives prior permission from the secretary to use, or the secretary requires, a different method. (5) The taxpayer shall have the burden of proving that an investment asset or activity or trading asset or activity was properly assigned to a regular place of business outside of this state by demonstrating that the day-to-day decisions regarding the asset or activity occurred at a regular place of business outside this state. Where the day-to-day decisions regarding an investment asset or activity or trading asset or activity occur at more than one (1) regular place of business and one (1) such regular place of business is in this state and one (1) such regular place of business is outside this state, such asset or activity shall be considered to be located at the regular place of business of the taxpayer where the investment or trading policies or guidelines with respect to the asset or activity are established. Unless the taxpayer demonstrates to the contrary, such policies and guidelines shall be presumed to be established at the commercial domicile of the taxpayer.

(1) (A) Interest, dividends, net gains, but not less than zero (0), and other income from investment assets and activities and from trading assets and activities shall be included in the receipts factor. (B) Investment assets and activities and trading assets and activities include, but are not limited to: (i) Investment securities; (ii) Trading account assets; (iii) Federal funds; (iv) Securities purchased and sold under agreements to resell or repurchase; (v) Options; (vi) Futures contracts; (vii) Forward contracts; (viii) Notional principal contracts such as swaps; (ix) Equities; and (x) Foreign currency transactions. (C) With respect to the investment and trading assets and activities described in subdivisions (m)(1)(D) and (E) of this section, the receipts factor shall include the amounts described in subdivisions (m)(1)(D) and (E) of this section. (D) The receipts factor shall include the amount by which interest from federal funds sold and securities purchased under resale agreements exceeds interest expense on federal funds purchased and securities sold under repurchase agreements. (E) The receipts factor shall include the amount by which interest, dividends, gains and other income from trading assets and activities, including, but not limited to, assets and activities in the matched book, in the arbitrage book, and foreign currency transactions, exceed amounts paid in lieu of interest, amounts paid in lieu of dividends, and losses from such assets and activities.

(A) Interest, dividends, net gains, but not less than zero (0), and other income from investment assets and activities and from trading assets and activities shall be included in the receipts factor.

(B) Investment assets and activities and trading assets and activities include, but are not limited to: (i) Investment securities; (ii) Trading account assets; (iii) Federal funds; (iv) Securities purchased and sold under agreements to resell or repurchase; (v) Options; (vi) Futures contracts; (vii) Forward contracts; (viii) Notional principal contracts such as swaps; (ix) Equities; and (x) Foreign currency transactions.

(i) Investment securities;

(ii) Trading account assets;

(iii) Federal funds;

(iv) Securities purchased and sold under agreements to resell or repurchase;

(v) Options;

(vi) Futures contracts;

(vii) Forward contracts;

(viii) Notional principal contracts such as swaps;

(ix) Equities; and

(x) Foreign currency transactions.

(C) With respect to the investment and trading assets and activities described in subdivisions (m)(1)(D) and (E) of this section, the receipts factor shall include the amounts described in subdivisions (m)(1)(D) and (E) of this section.

(D) The receipts factor shall include the amount by which interest from federal funds sold and securities purchased under resale agreements exceeds interest expense on federal funds purchased and securities sold under repurchase agreements.

(E) The receipts factor shall include the amount by which interest, dividends, gains and other income from trading assets and activities, including, but not limited to, assets and activities in the matched book, in the arbitrage book, and foreign currency transactions, exceed amounts paid in lieu of interest, amounts paid in lieu of dividends, and losses from such assets and activities.

(2) (A) The numerator of the receipts factor includes interest, dividends, net gains, but not less than zero (0), and other income from investment assets and activities and from trading assets and activities described in subdivision (m)(1) of this section that are attributable to this state. (B) The amount of interest, dividends, net gains, but not less than zero (0), and other income from investment assets and activities in the investment account to be attributed to this state and included in the numerator is determined by multiplying all such income from such assets and activities by a fraction, the numerator of which is the average value of such assets which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the average value of all such assets. (C) The amount of interest from federal funds sold and purchased and from securities purchased under resale agreements and securities sold under repurchase agreements attributable to this state and included in the numerator is determined by multiplying the amount described in subdivision (m)(1)(D) of this section from such funds and such securities by a fraction, the numerator of which is the average value of federal funds sold and securities purchased under agreements to resell which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the average value of all such funds and such securities. (D) The amount of interest, dividends, gains, and other income from trading assets and activities, including, but not limited to, assets and activities in the matched book, in the arbitrage book and in foreign currency transactions, but excluding amounts described in subdivision (m)(2)(B) or subdivision (m)(2)(C) of this section, attributable to this state and included in the numerator is determined by multiplying the amount described in subdivision (m)(1)(E) of this section by a fraction, the numerator of which is the average value of such trading assets which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the average value of all such assets. (E) For purposes of this subdivision (m)(2), average value shall be determined using the rules for determining the average value of tangible personal property set forth in § 26-51-1404(c) and (d) .

(A) The numerator of the receipts factor includes interest, dividends, net gains, but not less than zero (0), and other income from investment assets and activities and from trading assets and activities described in subdivision (m)(1) of this section that are attributable to this state.

(B) The amount of interest, dividends, net gains, but not less than zero (0), and other income from investment assets and activities in the investment account to be attributed to this state and included in the numerator is determined by multiplying all such income from such assets and activities by a fraction, the numerator of which is the average value of such assets which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the average value of all such assets.

(C) The amount of interest from federal funds sold and purchased and from securities purchased under resale agreements and securities sold under repurchase agreements attributable to this state and included in the numerator is determined by multiplying the amount described in subdivision (m)(1)(D) of this section from such funds and such securities by a fraction, the numerator of which is the average value of federal funds sold and securities purchased under agreements to resell which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the average value of all such funds and such securities.

(D) The amount of interest, dividends, gains, and other income from trading assets and activities, including, but not limited to, assets and activities in the matched book, in the arbitrage book and in foreign currency transactions, but excluding amounts described in subdivision (m)(2)(B) or subdivision (m)(2)(C) of this section, attributable to this state and included in the numerator is determined by multiplying the amount described in subdivision (m)(1)(E) of this section by a fraction, the numerator of which is the average value of such trading assets which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the average value of all such assets.

(E) For purposes of this subdivision (m)(2), average value shall be determined using the rules for determining the average value of tangible personal property set forth in § 26-51-1404(c) and (d) .

(3) (A) In lieu of using the method set forth in subdivision (m)(2) of this section, the taxpayer may elect, or the Secretary of the Department of Finance and Administration may require in order to fairly represent the business activity of the taxpayer in this state, the use of the method set forth in this subdivision (m)(3). (B) The amount of interest, dividends, net gains, but not less than zero (0), and other income from investment assets and activities in the investment account to be attributed to this state and included in the numerator is determined by multiplying all such income from such assets and activities by a fraction, the numerator of which is the gross income from such assets and activities which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the gross income from all such assets and activities. (C) The amount of interest from federal funds sold and purchased and from securities purchased under resale agreements and securities sold under repurchase agreements attributable to this state and included in the numerator is determined by multiplying the amount described in subdivision (m)(1)(D) of this section from such funds and such securities by a fraction, the numerator of which is the gross income from such funds and such securities which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the gross income from all such funds and such securities. (D) The amount of interest, dividends, gains, and other income from trading assets and activities, including, but not limited to, assets and activities in the matched book, in the arbitrage book and in foreign currency transactions, but excluding amounts described in subdivision (m)(3)(B) or subdivision (m)(3)(C) of this section, attributable to this state and included in the numerator is determined by multiplying the amount described in subdivision (m)(1)(E) of this section by a fraction, the numerator of which is the gross income from such trading assets and activities which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the gross income from all such assets and activities.

(A) In lieu of using the method set forth in subdivision (m)(2) of this section, the taxpayer may elect, or the Secretary of the Department of Finance and Administration may require in order to fairly represent the business activity of the taxpayer in this state, the use of the method set forth in this subdivision (m)(3).

(B) The amount of interest, dividends, net gains, but not less than zero (0), and other income from investment assets and activities in the investment account to be attributed to this state and included in the numerator is determined by multiplying all such income from such assets and activities by a fraction, the numerator of which is the gross income from such assets and activities which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the gross income from all such assets and activities.

(C) The amount of interest from federal funds sold and purchased and from securities purchased under resale agreements and securities sold under repurchase agreements attributable to this state and included in the numerator is determined by multiplying the amount described in subdivision (m)(1)(D) of this section from such funds and such securities by a fraction, the numerator of which is the gross income from such funds and such securities which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the gross income from all such funds and such securities.

(D) The amount of interest, dividends, gains, and other income from trading assets and activities, including, but not limited to, assets and activities in the matched book, in the arbitrage book and in foreign currency transactions, but excluding amounts described in subdivision (m)(3)(B) or subdivision (m)(3)(C) of this section, attributable to this state and included in the numerator is determined by multiplying the amount described in subdivision (m)(1)(E) of this section by a fraction, the numerator of which is the gross income from such trading assets and activities which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the gross income from all such assets and activities.

(4) If the taxpayer elects or is required by the secretary to use the method set forth in subdivision (m)(3) of this section, it shall use this method on all subsequent returns unless the taxpayer receives prior permission from the secretary to use, or the secretary requires, a different method.

(5) The taxpayer shall have the burden of proving that an investment asset or activity or trading asset or activity was properly assigned to a regular place of business outside of this state by demonstrating that the day-to-day decisions regarding the asset or activity occurred at a regular place of business outside this state. Where the day-to-day decisions regarding an investment asset or activity or trading asset or activity occur at more than one (1) regular place of business and one (1) such regular place of business is in this state and one (1) such regular place of business is outside this state, such asset or activity shall be considered to be located at the regular place of business of the taxpayer where the investment or trading policies or guidelines with respect to the asset or activity are established. Unless the taxpayer demonstrates to the contrary, such policies and guidelines shall be presumed to be established at the commercial domicile of the taxpayer.

(n) All Other Receipts. The numerator of the receipts factor includes all other receipts under the rules set out in §§ 26-51-716 and 26-51-717 .

(o) Attribution of Certain Receipts to Commercial Domicile. All receipts which would be assigned under this section to a state in which the taxpayer is not taxable shall be included in the numerator of the receipts factor, if the taxpayer's commercial domicile is in this state.

Amended by Act 2019, No. 822,§ 14, eff. 1/1/2021.

Amended by Act 2019, No. 822,§ 13, eff. 1/1/2021.

Amended by Act 2019, No. 910,§ 3785, eff. 7/1/2019.

Acts 1995, No. 495, § 1.
Ark. Code Ann. § 26-52-447 — AR Code / Title 26 / Chapter 52 / Subchapter 4 / Section 26-52-447
Partial replacement and repair of certain machinery and equipment - Definitions
Status: in_force

(a) The taxes levied under §§ 26-52-301 and 26-52-302 on the gross receipts or gross proceeds from the sale of the following are subject to a refund or exemption as provided in this section: (1) Machinery and equipment purchased to modify, replace, repair, or maintain, either in whole or in part, existing machinery or equipment used directly in producing, manufacturing, fabricating, assembling, processing, finishing, or packaging articles of commerce at a manufacturing or processing plant or facility in this state; (2) Service relating to the initial installation, alteration, addition, cleaning, refinishing, replacement, or repair of machinery or equipment described in subdivision (a)(1) of this section; (3) Machinery and equipment purchased to modify, replace, or repair, either in whole or in part, existing molds and dies used directly in producing, manufacturing, fabricating, assembling, processing, finishing, or packaging articles of commerce at a manufacturing or processing plant or facility in this state; and (4) (A) Except as provided in subdivision (a)(4)(B) of this section, machinery and equipment purchased for use or possible use by a taxpayer for a purpose described in subdivisions (a)(1)-(3) of this section and placed in inventory for later use by the taxpayer for a purpose described in subdivisions (a)(1)-(3) of this section. (B) (i) As used in this subdivision (a)(4)(B), "withdrawal from inventory" means the withdrawal or use of machinery or equipment held under subdivision (a)(4)(A) of this section by a taxpayer for a purpose that does not qualify for an exemption under this section or any other applicable exemption at the time of the withdrawal from inventory. (ii) A withdrawal from inventory is not eligible for the exemption provided under this section. (iii) For purposes of calculating the gross receipts tax under subdivision (a)(4)(B)(iv) of this section, the gross receipts or gross proceeds for a withdrawal from inventory is the purchase price of the machinery or equipment withdrawn. (iv) Tax is due on a withdrawal from inventory at the time the withdrawal from inventory occurs. (b) (1) Beginning July 1, 2014, the taxes levied under §§ 26-52-301 and 26-52-302 that are subject to a refund under this section are the taxes in excess of four and seven-eighths percent (4.875%). (2) The taxes levied under §§ 26-52-301 and 26-52-302 that are subject to a refund under this section are the taxes in excess of the following rates: (A) Beginning July 1, 2018, three and seven-eighths percent (3.875%); (B) Beginning July 1, 2019, two and seven-eighths percent (2.875%); (C) Beginning July 1, 2020, one and seven-eighths percent (1.875%); and (D) Beginning July 1, 2021, seven-eighths percent (0.875%). (3) Beginning July 1, 2022, sales qualifying for the tax refund under this section are exempt from the taxes levied under this chapter. (c) The excise tax of one-eighth of one percent (0.125%) levied in Arkansas Constitution, Amendment 75, the temporary excise tax of one-half percent (0.5%) levied in Arkansas Constitution, Amendment 91, and the excise tax of one-half percent (0.5%) levied in Arkansas Constitution, Amendment 101, are not subject to refund under this section. (d) As used in this section: (1) "Manufacturing" or "processing" means the same as defined under § 26-52-402(b) and includes activities described in subsection (a) of this section, both independently and collectively; and (2) "Used directly" means the same as defined under § 26-52-402(c) . (e) All existing excise tax exemptions, including without limitation exemptions under §§ 26-52-402 and 26-53-114 , remain in full force and effect and are not limited by this section. (f) A taxpayer may claim the benefit of the tax refund under this section only by using one (1) of the following methods: (1) (A) Both: (i) Obtaining a direct pay or a limited direct pay sales and use tax permit from the Department of Finance and Administration; and (ii) Self-refunding: (a) At the time the taxpayer files his or her original sales and use tax report; or (b) By later filing an amended sales or use tax report with the department. (B) The statutes of limitation stated in § 26-18-306 apply to claims made under this subdivision (f)(1). (C) Interest shall not accrue or be paid on a refund claimed under this subdivision (f)(1); or (2) (A) Beginning July 1, 2018, for a taxpayer that does not hold a direct pay or limited direct pay permit, holds an active Arkansas sales and use tax permit, and files sales and use tax reports with the department, filing a claim for a credit or rebate with the department. (B) (i) The credit or rebate authorized under this subdivision (f)(2) shall be obtained only by offsetting the amount of the claimed credit or rebate against the state tax to be remitted with the taxpayer's sales and use tax reports. (ii) If the total amount of the credit or rebate authorized under this subdivision (f)(2) is greater than the amount of the state tax to be remitted with the taxpayer's sales and use tax reports, the taxpayer is entitled to a refund of the difference between the amount of the tax owed and the amount of the credit or rebate authorized under this subdivision (f)(2). (C) A taxpayer claiming a credit or rebate under this subdivision (f)(2) shall electronically file all sales and use tax reports. (D) A claim for credit or rebate under this subdivision (f)(2) shall not be paid for a claim filed more than one (1) year following the date of the qualifying sale or more than one (1) year following the date of payment, whichever is later. (E) Interest shall not accrue or be paid on an amount subject to a claim for a credit or rebate under this subdivision (f)(2). (g) A claim for a credit or rebate shall not be paid under subdivision (f)(2) of this section for a sale made before July 1, 2018. (h) A taxpayer shall not claim the benefit of the refund under this section by filing a verified claim for refund with the department. (i) The following provisions of the Arkansas Tax Procedure Act, § 26-18-101 et seq., apply to claims for a refund under this section: (1) The time limitations that apply to claims for a refund of an overpayment of state tax; and (2) The procedures that apply to the disallowance or proposed disallowance of claims for a refund. Amended by Act 2023, No. 646,§ 2, eff. 10/1/2023. Amended by Act 2023, No. 130,§ 3, eff. 2/24/2023. Amended by Act 2019, No. 772,§ 1, eff. 10/1/2019. Amended by Act 2017, No. 465,§ 4, eff. 3/13/2017. Amended by Act 2017, No. 465,§ 3, eff. 3/13/2017. Amended by Act 2015, No. 1107,§ 1, eff. 4/6/2015. Added by Act 2013, No. 1404,§ 1, eff. 7/1/2014.

(a) The taxes levied under §§ 26-52-301 and 26-52-302 on the gross receipts or gross proceeds from the sale of the following are subject to a refund or exemption as provided in this section: (1) Machinery and equipment purchased to modify, replace, repair, or maintain, either in whole or in part, existing machinery or equipment used directly in producing, manufacturing, fabricating, assembling, processing, finishing, or packaging articles of commerce at a manufacturing or processing plant or facility in this state; (2) Service relating to the initial installation, alteration, addition, cleaning, refinishing, replacement, or repair of machinery or equipment described in subdivision (a)(1) of this section; (3) Machinery and equipment purchased to modify, replace, or repair, either in whole or in part, existing molds and dies used directly in producing, manufacturing, fabricating, assembling, processing, finishing, or packaging articles of commerce at a manufacturing or processing plant or facility in this state; and (4) (A) Except as provided in subdivision (a)(4)(B) of this section, machinery and equipment purchased for use or possible use by a taxpayer for a purpose described in subdivisions (a)(1)-(3) of this section and placed in inventory for later use by the taxpayer for a purpose described in subdivisions (a)(1)-(3) of this section. (B) (i) As used in this subdivision (a)(4)(B), "withdrawal from inventory" means the withdrawal or use of machinery or equipment held under subdivision (a)(4)(A) of this section by a taxpayer for a purpose that does not qualify for an exemption under this section or any other applicable exemption at the time of the withdrawal from inventory. (ii) A withdrawal from inventory is not eligible for the exemption provided under this section. (iii) For purposes of calculating the gross receipts tax under subdivision (a)(4)(B)(iv) of this section, the gross receipts or gross proceeds for a withdrawal from inventory is the purchase price of the machinery or equipment withdrawn. (iv) Tax is due on a withdrawal from inventory at the time the withdrawal from inventory occurs.

(1) Machinery and equipment purchased to modify, replace, repair, or maintain, either in whole or in part, existing machinery or equipment used directly in producing, manufacturing, fabricating, assembling, processing, finishing, or packaging articles of commerce at a manufacturing or processing plant or facility in this state;

(2) Service relating to the initial installation, alteration, addition, cleaning, refinishing, replacement, or repair of machinery or equipment described in subdivision (a)(1) of this section;

(3) Machinery and equipment purchased to modify, replace, or repair, either in whole or in part, existing molds and dies used directly in producing, manufacturing, fabricating, assembling, processing, finishing, or packaging articles of commerce at a manufacturing or processing plant or facility in this state; and

(4) (A) Except as provided in subdivision (a)(4)(B) of this section, machinery and equipment purchased for use or possible use by a taxpayer for a purpose described in subdivisions (a)(1)-(3) of this section and placed in inventory for later use by the taxpayer for a purpose described in subdivisions (a)(1)-(3) of this section. (B) (i) As used in this subdivision (a)(4)(B), "withdrawal from inventory" means the withdrawal or use of machinery or equipment held under subdivision (a)(4)(A) of this section by a taxpayer for a purpose that does not qualify for an exemption under this section or any other applicable exemption at the time of the withdrawal from inventory. (ii) A withdrawal from inventory is not eligible for the exemption provided under this section. (iii) For purposes of calculating the gross receipts tax under subdivision (a)(4)(B)(iv) of this section, the gross receipts or gross proceeds for a withdrawal from inventory is the purchase price of the machinery or equipment withdrawn. (iv) Tax is due on a withdrawal from inventory at the time the withdrawal from inventory occurs.

(A) Except as provided in subdivision (a)(4)(B) of this section, machinery and equipment purchased for use or possible use by a taxpayer for a purpose described in subdivisions (a)(1)-(3) of this section and placed in inventory for later use by the taxpayer for a purpose described in subdivisions (a)(1)-(3) of this section.

(B) (i) As used in this subdivision (a)(4)(B), "withdrawal from inventory" means the withdrawal or use of machinery or equipment held under subdivision (a)(4)(A) of this section by a taxpayer for a purpose that does not qualify for an exemption under this section or any other applicable exemption at the time of the withdrawal from inventory. (ii) A withdrawal from inventory is not eligible for the exemption provided under this section. (iii) For purposes of calculating the gross receipts tax under subdivision (a)(4)(B)(iv) of this section, the gross receipts or gross proceeds for a withdrawal from inventory is the purchase price of the machinery or equipment withdrawn. (iv) Tax is due on a withdrawal from inventory at the time the withdrawal from inventory occurs.

(i) As used in this subdivision (a)(4)(B), "withdrawal from inventory" means the withdrawal or use of machinery or equipment held under subdivision (a)(4)(A) of this section by a taxpayer for a purpose that does not qualify for an exemption under this section or any other applicable exemption at the time of the withdrawal from inventory.

(ii) A withdrawal from inventory is not eligible for the exemption provided under this section.

(iii) For purposes of calculating the gross receipts tax under subdivision (a)(4)(B)(iv) of this section, the gross receipts or gross proceeds for a withdrawal from inventory is the purchase price of the machinery or equipment withdrawn.

(iv) Tax is due on a withdrawal from inventory at the time the withdrawal from inventory occurs.

(b) (1) Beginning July 1, 2014, the taxes levied under §§ 26-52-301 and 26-52-302 that are subject to a refund under this section are the taxes in excess of four and seven-eighths percent (4.875%). (2) The taxes levied under §§ 26-52-301 and 26-52-302 that are subject to a refund under this section are the taxes in excess of the following rates: (A) Beginning July 1, 2018, three and seven-eighths percent (3.875%); (B) Beginning July 1, 2019, two and seven-eighths percent (2.875%); (C) Beginning July 1, 2020, one and seven-eighths percent (1.875%); and (D) Beginning July 1, 2021, seven-eighths percent (0.875%). (3) Beginning July 1, 2022, sales qualifying for the tax refund under this section are exempt from the taxes levied under this chapter.

(1) Beginning July 1, 2014, the taxes levied under §§ 26-52-301 and 26-52-302 that are subject to a refund under this section are the taxes in excess of four and seven-eighths percent (4.875%).

(2) The taxes levied under §§ 26-52-301 and 26-52-302 that are subject to a refund under this section are the taxes in excess of the following rates: (A) Beginning July 1, 2018, three and seven-eighths percent (3.875%); (B) Beginning July 1, 2019, two and seven-eighths percent (2.875%); (C) Beginning July 1, 2020, one and seven-eighths percent (1.875%); and (D) Beginning July 1, 2021, seven-eighths percent (0.875%).

(A) Beginning July 1, 2018, three and seven-eighths percent (3.875%);

(B) Beginning July 1, 2019, two and seven-eighths percent (2.875%);

(C) Beginning July 1, 2020, one and seven-eighths percent (1.875%); and

(D) Beginning July 1, 2021, seven-eighths percent (0.875%).

(3) Beginning July 1, 2022, sales qualifying for the tax refund under this section are exempt from the taxes levied under this chapter.

(c) The excise tax of one-eighth of one percent (0.125%) levied in Arkansas Constitution, Amendment 75, the temporary excise tax of one-half percent (0.5%) levied in Arkansas Constitution, Amendment 91, and the excise tax of one-half percent (0.5%) levied in Arkansas Constitution, Amendment 101, are not subject to refund under this section.

(d) As used in this section: (1) "Manufacturing" or "processing" means the same as defined under § 26-52-402(b) and includes activities described in subsection (a) of this section, both independently and collectively; and (2) "Used directly" means the same as defined under § 26-52-402(c) .

(1) "Manufacturing" or "processing" means the same as defined under § 26-52-402(b) and includes activities described in subsection (a) of this section, both independently and collectively; and

(2) "Used directly" means the same as defined under § 26-52-402(c) .

(e) All existing excise tax exemptions, including without limitation exemptions under §§ 26-52-402 and 26-53-114 , remain in full force and effect and are not limited by this section.

(f) A taxpayer may claim the benefit of the tax refund under this section only by using one (1) of the following methods: (1) (A) Both: (i) Obtaining a direct pay or a limited direct pay sales and use tax permit from the Department of Finance and Administration; and (ii) Self-refunding: (a) At the time the taxpayer files his or her original sales and use tax report; or (b) By later filing an amended sales or use tax report with the department. (B) The statutes of limitation stated in § 26-18-306 apply to claims made under this subdivision (f)(1). (C) Interest shall not accrue or be paid on a refund claimed under this subdivision (f)(1); or (2) (A) Beginning July 1, 2018, for a taxpayer that does not hold a direct pay or limited direct pay permit, holds an active Arkansas sales and use tax permit, and files sales and use tax reports with the department, filing a claim for a credit or rebate with the department. (B) (i) The credit or rebate authorized under this subdivision (f)(2) shall be obtained only by offsetting the amount of the claimed credit or rebate against the state tax to be remitted with the taxpayer's sales and use tax reports. (ii) If the total amount of the credit or rebate authorized under this subdivision (f)(2) is greater than the amount of the state tax to be remitted with the taxpayer's sales and use tax reports, the taxpayer is entitled to a refund of the difference between the amount of the tax owed and the amount of the credit or rebate authorized under this subdivision (f)(2). (C) A taxpayer claiming a credit or rebate under this subdivision (f)(2) shall electronically file all sales and use tax reports. (D) A claim for credit or rebate under this subdivision (f)(2) shall not be paid for a claim filed more than one (1) year following the date of the qualifying sale or more than one (1) year following the date of payment, whichever is later. (E) Interest shall not accrue or be paid on an amount subject to a claim for a credit or rebate under this subdivision (f)(2).

(1) (A) Both: (i) Obtaining a direct pay or a limited direct pay sales and use tax permit from the Department of Finance and Administration; and (ii) Self-refunding: (a) At the time the taxpayer files his or her original sales and use tax report; or (b) By later filing an amended sales or use tax report with the department. (B) The statutes of limitation stated in § 26-18-306 apply to claims made under this subdivision (f)(1). (C) Interest shall not accrue or be paid on a refund claimed under this subdivision (f)(1); or

(A) Both: (i) Obtaining a direct pay or a limited direct pay sales and use tax permit from the Department of Finance and Administration; and (ii) Self-refunding: (a) At the time the taxpayer files his or her original sales and use tax report; or (b) By later filing an amended sales or use tax report with the department.

(i) Obtaining a direct pay or a limited direct pay sales and use tax permit from the Department of Finance and Administration; and

(ii) Self-refunding: (a) At the time the taxpayer files his or her original sales and use tax report; or (b) By later filing an amended sales or use tax report with the department.

(a) At the time the taxpayer files his or her original sales and use tax report; or

(b) By later filing an amended sales or use tax report with the department.

(B) The statutes of limitation stated in § 26-18-306 apply to claims made under this subdivision (f)(1).

(C) Interest shall not accrue or be paid on a refund claimed under this subdivision (f)(1); or

(2) (A) Beginning July 1, 2018, for a taxpayer that does not hold a direct pay or limited direct pay permit, holds an active Arkansas sales and use tax permit, and files sales and use tax reports with the department, filing a claim for a credit or rebate with the department. (B) (i) The credit or rebate authorized under this subdivision (f)(2) shall be obtained only by offsetting the amount of the claimed credit or rebate against the state tax to be remitted with the taxpayer's sales and use tax reports. (ii) If the total amount of the credit or rebate authorized under this subdivision (f)(2) is greater than the amount of the state tax to be remitted with the taxpayer's sales and use tax reports, the taxpayer is entitled to a refund of the difference between the amount of the tax owed and the amount of the credit or rebate authorized under this subdivision (f)(2). (C) A taxpayer claiming a credit or rebate under this subdivision (f)(2) shall electronically file all sales and use tax reports. (D) A claim for credit or rebate under this subdivision (f)(2) shall not be paid for a claim filed more than one (1) year following the date of the qualifying sale or more than one (1) year following the date of payment, whichever is later. (E) Interest shall not accrue or be paid on an amount subject to a claim for a credit or rebate under this subdivision (f)(2).

(A) Beginning July 1, 2018, for a taxpayer that does not hold a direct pay or limited direct pay permit, holds an active Arkansas sales and use tax permit, and files sales and use tax reports with the department, filing a claim for a credit or rebate with the department.

(B) (i) The credit or rebate authorized under this subdivision (f)(2) shall be obtained only by offsetting the amount of the claimed credit or rebate against the state tax to be remitted with the taxpayer's sales and use tax reports. (ii) If the total amount of the credit or rebate authorized under this subdivision (f)(2) is greater than the amount of the state tax to be remitted with the taxpayer's sales and use tax reports, the taxpayer is entitled to a refund of the difference between the amount of the tax owed and the amount of the credit or rebate authorized under this subdivision (f)(2).

(i) The credit or rebate authorized under this subdivision (f)(2) shall be obtained only by offsetting the amount of the claimed credit or rebate against the state tax to be remitted with the taxpayer's sales and use tax reports.

(ii) If the total amount of the credit or rebate authorized under this subdivision (f)(2) is greater than the amount of the state tax to be remitted with the taxpayer's sales and use tax reports, the taxpayer is entitled to a refund of the difference between the amount of the tax owed and the amount of the credit or rebate authorized under this subdivision (f)(2).

(C) A taxpayer claiming a credit or rebate under this subdivision (f)(2) shall electronically file all sales and use tax reports.

(D) A claim for credit or rebate under this subdivision (f)(2) shall not be paid for a claim filed more than one (1) year following the date of the qualifying sale or more than one (1) year following the date of payment, whichever is later.

(E) Interest shall not accrue or be paid on an amount subject to a claim for a credit or rebate under this subdivision (f)(2).

(g) A claim for a credit or rebate shall not be paid under subdivision (f)(2) of this section for a sale made before July 1, 2018.

(h) A taxpayer shall not claim the benefit of the refund under this section by filing a verified claim for refund with the department.

(i) The following provisions of the Arkansas Tax Procedure Act, § 26-18-101 et seq., apply to claims for a refund under this section: (1) The time limitations that apply to claims for a refund of an overpayment of state tax; and (2) The procedures that apply to the disallowance or proposed disallowance of claims for a refund.

(1) The time limitations that apply to claims for a refund of an overpayment of state tax; and

(2) The procedures that apply to the disallowance or proposed disallowance of claims for a refund.

Amended by Act 2023, No. 646,§ 2, eff. 10/1/2023.

Amended by Act 2023, No. 130,§ 3, eff. 2/24/2023.

Amended by Act 2019, No. 772,§ 1, eff. 10/1/2019.

Amended by Act 2017, No. 465,§ 4, eff. 3/13/2017.

Amended by Act 2017, No. 465,§ 3, eff. 3/13/2017.

Amended by Act 2015, No. 1107,§ 1, eff. 4/6/2015.

Added by Act 2013, No. 1404,§ 1, eff. 7/1/2014.
Ark. Code Ann. § 26-51-2408 — AR Code / Title 26 / Chapter 51 / Subchapter 24 / Section 26-51-2408
Procedure to claim the investment tax credit
Status: in_force

(a) To claim the investment tax credit, a taxpayer shall submit the eligibility certificate issued by the governing body of the central business improvement district to the Department of Finance and Administration. (b) (1) In addition to the submission under subsection (a) of this section, the taxpayer shall submit an eligibility certificate at the time of filing the taxpayer's income tax return. (2) If the taxpayer fails to attach the eligibility certificate to the taxpayer's income tax return, an investment tax credit is not allowed with respect to the qualified project for that tax year until the eligibility certificate is provided to the department. Acts 2011, No. 1166, § 1.

(a) To claim the investment tax credit, a taxpayer shall submit the eligibility certificate issued by the governing body of the central business improvement district to the Department of Finance and Administration.

(b) (1) In addition to the submission under subsection (a) of this section, the taxpayer shall submit an eligibility certificate at the time of filing the taxpayer's income tax return. (2) If the taxpayer fails to attach the eligibility certificate to the taxpayer's income tax return, an investment tax credit is not allowed with respect to the qualified project for that tax year until the eligibility certificate is provided to the department.

(1) In addition to the submission under subsection (a) of this section, the taxpayer shall submit an eligibility certificate at the time of filing the taxpayer's income tax return.

(2) If the taxpayer fails to attach the eligibility certificate to the taxpayer's income tax return, an investment tax credit is not allowed with respect to the qualified project for that tax year until the eligibility certificate is provided to the department.

Acts 2011, No. 1166, § 1.