Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › GROSS RECEIPTS TAX RULES › Rule 006.05.06-005-GR-54 - SALES AND USE TAX INCENTIVES, CREDITS AND REFUNDS

Current through Register Vol. 49, No. 6, June, 2024
A. ARKANSAS TOURISM DEVELOPMENT ACT ("TDA").
				The Arkansas Tourism Development Act program provides financial incentives to
				induce the construction or expansion of tourism attractions. The Act is
				codified in Ark. Code Ann. §
									15-11-501 et
				seq. The program authorizes State sales tax credits and State income tax
				credits. "Tourism attraction" is defined to include cultural or historical
				sites, recreational or entertainment facilities, areas of natural phenomena or
				scenic beauty, theme parks, amusement or entertainment parks, indoor or outdoor
				plays or music shows, botanical gardens and cultural or educational centers.
				Certain lodging facilities may also qualify as a tourism attraction project. A
				facility regulated under the Arkansas Horse Racing Law, or the Arkansas
				Greyhound Racing Law, shall be a tourism attraction for purposes of this Act
				for any approved project. The tourism development program is administered by
				the Arkansas Economic Development Commission ("AEDC"). Upon receiving
				notification from the Director of AEDC that an approved company has entered
				into a tourism project agreement and is entitled to the sales tax credits, the
				Director of the Department of Finance and Administration ("DFA") shall provide
				the approved company with such forms and instructions as are necessary to claim
				those credits.
1. The amount of sales tax
				credit will be based on a percentage of approved costs expended by an approved
				company. An approved company shall be entitled to a credit if the company
				certifies to the Director of DFA that it has expended at least $500,000.00 in a
				high-unemployment county and $1,000,00.00 in all other counties in approved
				costs and the Director of AEDC certifies that the approved company is in
				compliance with the Act.
a. The Director of
				DFA shall issue a sales tax credit memorandum to the approved company equal to
				fifteen percent (15%) of the approved costs. In high unemployment counties, the
				Director shall issue a credit memorandum to the approved company equal to
				twenty-five percent (25%) of the approved costs. Qualified amusement parks
				entering into a financial incentive agreement on or after January 1, 2006, for
				an approved project that will exceed $1,000,000.00 are eligible for a sales tax
				credit equal to twenty-five percent (25%) of the approved costs.
b. The sales tax credit memorandum shall not
				include an offset of the tourism tax levied under Ark. Code Ann. §
											26-63-401
				et seq.
c. Only increased sales tax
				liability as defined in the Act may be offset by the issued credit.
d. An approved company shall be entitled to
				use one hundred percent (100%) of the issued credit to offset increased state
				sales tax liability during the first year if its tax liability is equal to or
				greater than the amount issued in the state sales tax credit
				memorandum.
e. No sales tax credit
				memorandum shall be issued for any approved costs expended after two (2) years
				from the date the agreement the tourism project agreement was signed. However,
				in limited circumstances, the Director of DFA may authorize sales tax credits
				for approved costs expended up to four (4) years after the agreement was
				signed.