Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 5 - STATE TAXES (§§ 26-50-101 — 26-65-108) › Chapter 52 - GROSS RECEIPTS TAX (§§ 26-52-101 — 26-52-1601) › Subchapter 5 - RETURNS AND REMITTANCE OF TAX (§§ 26-52-501 — 26-52-523) › Section 26-52-523 - Credit or rebate on local sales and use tax - Definitions

(a)
As used in this section:
(1)
"Qualifying purchase" means a purchase of tangible personal property, specified digital products, a digital code, or a taxable service:
(A)
For which the purchaser may take a business expense deduction pursuant to
26 U.S.C. § 162
, as in effect on January 1, 2007;
(B)
For which the purchaser may take a depreciation deduction pursuant to
26 U.S.C. § 167
, as in effect on January 1, 2007;
(C)
By an exempt organization under
26 U.S.C. § 501
, as in effect on January 1, 2007, if the purchase would be subject to a business expense deduction or depreciation deduction if the purchaser were not an exempt organization under
26 U.S.C. § 501
, as in effect on January 1, 2007; or
(D)
By a state or a county, city, municipality, school district, state-supported college or university, or any other political subdivision of a state if the purchase would be subject to a business expense deduction or depreciation deduction if the purchaser were not one of the entities enumerated in this subdivision (a)(1)(D);
(2)
"Single transaction" means a sale of tangible personal property, specified digital products, a digital code, or a taxable service reflected on a single invoice, receipt, or statement for which an aggregate sales or use tax amount has been reported and remitted to the state for a single local taxing jurisdiction; and
(3)
"Travel trailer" means a trailer that:
(A)
Provides temporary living quarters for travel, recreation, or camping;
(B)
Includes a chassis having wheels and a trailer hitch or fifth wheel for towing; and
(C)
Is required to be licensed for highway use under Arkansas law.
(b)
(1)
A purchaser that pays any municipal sales or use tax in excess of the tax due on the first two thousand five hundred dollars ($2,500) of gross receipts or gross proceeds from the purchase of a travel trailer or from a qualifying purchase of tangible personal property, specified digital products, a digital code, or a taxable service in a single transaction is entitled to a credit or rebate of the excess amount of municipal sales or use tax paid on each single transaction.
(2)
A purchaser that pays any county sales or use tax in excess of the tax due on the first two thousand five hundred dollars ($2,500) of gross receipts or gross proceeds from the purchase of a travel trailer or from a qualifying purchase of tangible personal property, specified digital products, a digital code, or a taxable service in a single transaction is entitled to a credit or rebate of the excess amount of county sales or use tax paid on each single transaction.
(c)
(1)
A purchaser that is required by §
26-52-501
, §
26-52-509
, or §
26-53-125
to file a sales or use tax return may file a claim for a credit or rebate under this section with the Secretary of the Department of Finance and Administration in connection with the sales or use tax return and offset the amount of credit or rebate claimed against any municipal or county sales or use tax due to be remitted with the return.
(2)
A purchaser that qualifies for a credit or rebate under this section and is not required to file a sales or use tax return as provided in subdivision (c)(1) of this section may file a claim for a credit or rebate under this section with the secretary.
(3)
If a rebate would be due under this section as a result of the purchase of a travel trailer and if the gross receipts or compensating use tax on the travel trailer is collected directly from the purchaser by the Department of Finance and Administration under §
26-52-510
or §
26-53-126
, then the department shall collect only the amount of tax due less the amount to which the purchaser would be entitled under the rebate provisions of this section.
(d)
A credit or rebate under this section shall not be paid for a claim filed more than one (1) year following the date of the qualifying purchase or more than one (1) year following the date of payment, if later.
(e)
A claim for a credit or rebate under this section shall be filed with the local taxing jurisdiction if, at the time the claim is filed, the local sales or use tax that is the subject of the claim has been out of existence for more than sixty (60) days.
(f)
No interest shall accrue or be paid on an amount subject to a claim for a credit or rebate under this section.
(g)
The secretary may promulgate rules to administer this section, including without limitation providing an administratively feasible method for filing a claim for a credit or rebate and any necessary forms.
(h)
This section does not apply to a local sales tax levied in accordance with §
26-52-303
or §
26-75-502
.
(i)
Except as provided in subsection (h) of this section, this section applies to any local sales or use tax collected by the secretary pursuant to any state tax law authorizing a county or municipality to levy a sales or use tax.
Amended by Act 2019, No. 910,§ 3893, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 3892, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 3891, eff. 7/1/2019.
Amended by Act 2017, No. 141,§ 43, eff. for tax years beginning on and after 1/1/2018.
Amended by Act 2015, No. 896,§ 7, eff. 10/1/2015.
Acts 2007, No. 179, § 1; 2009, No. 941, § 1.