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 57 - STATE PRIVILEGE TAXES (§§ 26-57-201 — 26-57-1605) › Subchapter 12 - VENDING DEVICES DECAL ACT OF 1997 (§§ 26-57-1201 — 26-57-1217) › Section 26-57-1206 - Annual decal fee - Special decal - In lieu of sales tax

(a)
(1)
Every person who is the operator of a vending device, who elects to have the operation of the vending device covered by the provisions of this subchapter, and who makes available to the general public for use and operation vending devices described in this subchapter shall pay to the Secretary of the Department of Finance and Administration for the benefit of the state and its municipalities and counties the following annual vending device decal fee for each vending device before the vending device may be placed in service within the state for use by members of the public:
(A)
For each coin-operated vending device requiring a coin or thing of value of twenty-five cents (25¢) or more for a sale, ninety-three dollars ($93.00);
(B)
For each coin-operated vending device requiring a coin or thing of value of less than twenty-five cents (25¢) for a sale, fifteen dollars ($15.00);
(C)
For each coin-operated bulk vending device requiring a coin or thing of value of more than twenty-five cents (25¢) for a sale, seven dollars and fifty cents ($7.50);
(D)
For each coin-operated bulk vending device requiring a coin or thing of value of twenty-five cents (25¢) or less for a sale, two dollars and fifty cents ($2.50); and
(E)
For each coin-operated manually powered vending device, coin-operated tabletop snack vending device, or other coin-operated manually powered vending device requiring a coin or thing of value of twenty-five cents (25¢) or more for a sale, thirty dollars ($30.00).
(2)
(A)
After payment of the appropriate annual vending device decal fee, the annual vending device decal issued by the secretary shall bear on its face the year of its issue.
(B)
The annual vending device decal must be affixed to each vending device in a place that is clearly visible to the user of the vending device before the vending device may be placed by the operator for public use or operation in this state.
(3)
The annual vending device decal shall not be transferred from one (1) vending device to another, unless the person who is the operator of the vending device shall establish to the satisfaction of the secretary that the vending device to which the annual vending device decal is to be transferred is a vending device that is replacing the vending device to which the annual vending device decal was originally affixed.
(b)
In those instances in which it is shown to the satisfaction of the secretary that a vending device upon which an annual vending device decal fee is otherwise due will be placed in service for use by members of the general public for a definite period of time that is less than one (1) year, such as when the vending device shall be placed for public use in connection with fairs, carnivals, and places of amusement that operate only during certain seasons of the year, the secretary shall issue for those vending devices a special vending device decal and collect a special vending device decal fee computed as follows:
(1)
(A)
The special vending device decal may be issued for any number of thirty-day periods totaling less than a full year.
(B)
The special vending device decal shall:
(i)
State on its face that it is a special vending device decal, not an annual vending device decal;
(ii)
Be for one (1) or more thirty-day periods;
(iii)
State on its face the precise dates for which it has been issued; and
(iv)
Not be transferred from one (1) vending device to another vending device;
(2)
The special vending device decal fee shall be computed and paid by the person who is the operator of the vending device on the basis of one-fifth (1/5) of the annual vending device decal fee charged by this subchapter for the type of vending device operated for each thirty-day period for which the special decal is issued; and
(3)
In the event the vending device is made available to the public for a period beyond that for which the special vending device decal is issued, then a full year's fee and penalty, as set out in this section, shall be due on the vending device from the person who is the operator of the vending device.
(c)
(1)
The annual or special vending device decal fees required to be paid by subsections (a) and (b) of this section shall be paid by the person who is the operator of the vending device in lieu of the requirement that the person collect and remit the:
(A)
State and local gross receipts or sales taxes levied pursuant to the provisions of the Arkansas Gross Receipts Act of 1941, §
26-52-101
et seq., any provision of §
26-74-101
et seq. and §
26-75-101
et seq., or any other provision of this Code which provides for the levy of a local sales tax; or
(B)
Special sales taxes levied pursuant to the provisions of §
26-57-1001
et seq.
(2)
It is the intent of the General Assembly that gross proceeds or gross receipts shall not be subject to any state or local gross receipts or sales taxes imposed in this state when:
(A)
The gross receipts or gross proceeds are received by a person who is the operator of a vending device from the sale of any item of tangible personal property through the vending device; and
(B)
The annual or special vending device decal fee has been paid and the decal is affixed to the vending device.
(d)
Any sales made by the operator of a coin-operated vending device that are made without the use of a vending device, for example, office coffee service, manual hot foods lines, catering events, and other similar sales, shall be subject to the state and local gross receipts or sales taxes levied pursuant to the provisions of the Arkansas Gross Receipts Act of 1941, §
26-52-101
et seq., any provision of §
26-74-101
et seq. and §
26-75-101
et seq., or any other provision of this Code that provides for the levy of a local sales tax.
(e)
(1)
For all vending devices that the operator does not elect to have covered by the decal fee provided by this section, the operator of that vending device shall acquire from the secretary an identifying decal that the operator shall affix to the vending device in a prominent place so as to establish to the consuming public that the vending device is not covered by the provisions of this subchapter.
(2)
By reasonable rules the secretary shall establish the amount to be charged for an identifying decal, and the amount shall not exceed the cost of producing the identifying decals.
(f)
An operator who elects to pay tax at the wholesale level and which has been issued an identification number by the Department of Finance and Administration as of March 31, 1997, shall be entitled to utilize that identification number for all vending devices owned by that operator.
Amended by Act 2019, No. 315,§ 3040, eff. 7/24/2019.
Amended by Act 2019, No. 910,§ 4211, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 4210, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 4209, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 4208, eff. 7/1/2019.
Acts 1997, No. 928, § 6; 2003 (2nd Ex. Sess.), No. 107, § 9; 2005, No. 1962, § 115; 2009, No. 655, § 96.