reglab/statecodes huggingface dataset:
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-45 - EXEMPTIONS FROM TAX - CERTAIN PRODUCTS USED FOR LIVESTOCK AND POULTRY - SPECIAL RULES FOR CLAIMING EXEMPTIONS

Current through Register Vol. 49, No. 6, June, 2024
A.
				The gross receipts or gross proceeds derived from sales of agricultural
				fertilizer, agricultural limestone, and agricultural chemicals are exempt from
				the tax. The term "agricultural chemicals" includes, but is not limited to
				agricultural pesticides and agricultural herbicides, and vaccines, medications,
				and medicinal preparations used in treating livestock and poultry. Pesticides
				and herbicides used in and around poultry and other animal houses and
				agricultural chemicals and fertilizers used in the commercial production of
				timber are exempt.
B. The gross
				receipts or gross proceeds derived from sales of feedstuffs used in growing and
				producing livestock or poultry for commercial production in Arkansas are exempt
				from the tax.
C. DEFINITIONS.
1. "Feedstuffs" mean processed or unprocessed
				grains, mixed or unmixed grains; whole or ground hay; whole or ground straw;
				hulls, whether mixed with other materials or not; and food supplements,
				including hormones, antibiotics, vitamins, minerals and medications ingested by
				poultry or livestock. Food supplements need not be nutritious or for medicinal
				purposes.
2. "Livestock" includes
				cattle, horses, mules, sheep, hogs, and any other animals kept for commercial
				use or profit.
3. "Agricultural"
				means operations engaged in for the production of food, fiber, timber, sod, and
				nurseryman products.
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-46 - NON-TAXABLE ADVERTISING SERVICES

Current through Register Vol. 49, No. 6, June, 2024
A.
				DEFINITIONS.
1. "Advertising agency" means a
				business which provides comprehensive, professional advertising services
				including, but not limited to, artwork, concepting, designing and any other
				creative services necessary to create, plan and implement an advertising
				scheme.
2. "Advertising services"
				mean those professional services provided by an advertising agency when
				designing and implementing an advertising campaign for a customer.
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-47 - EXEMPTIONS FROM TAX - SALES TO THE UNITED STATES GOVERNMENT

Current through Register Vol. 49, No. 6, June, 2024
The gross receipts or gross proceeds derived from sales to
				  the United States Government are exempt from the tax Contractors purchasing
				  tangible personal property or taxable services pursuant to a contract with the
				  United States Government are the consumers of such property or services and
				  must pay the tax when they purchase the property or services Sales to United
				  States Government employees who pay for the articles purchased with their own
				  funds are not exempt.
Ark. Code Ann. §
											26-52-401(5)
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-48 - EXEMPTIONS FROM TAX - NEWSPAPERS, PUBLICATIONS, AND BILLBOARDS

Current through Register Vol. 49, No. 6, June, 2024
A. DEFINITIONS.
1. "Newspaper" means a publication in sheet
				form containing reports of current events and articles of general interest to
				the public, published regularly in short intervals such as daily, weekly, or
				bi-weekly, and intended for general circulation.
2. "Advertising space" means space located
				within the body of a newspaper or publication, containing advertisements which
				are printed concurrently with the news, articles, features, or other
				attractions in the newspaper or publication and the classified advertising
				section.
3. "Advertising
				supplement" means a publication in sheet form, other than the usual classified
				advertising section of a newspaper, printed in Arkansas by a newspaper
				publisher or job printer, containing advertising only and which is not
				physically attached to a newspaper, but which may be distributed with a
				newspaper or by other means.
4.
				"Billboard advertising services" mean any and all services rendered in
				connection with the rental or lease of advertising space on a structure which
				is affixed to the land for the purpose of posting advertising
				messages.
5. "Publication" means
				any pamphlet, magazine, journal, or periodical, other than a newspaper,
				designed for the information or entertainment of the general public or any
				segment thereof.
6. "Regular
				subscription" means the purchase by advance payment of a specified number (two
				or more) of issues of a publication over a certain period of time, and
				delivered to the subscriber by mail or otherwise.
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-49 - EXEMPTIONS FROM TAX - ISOLATED SALES

Current through Register Vol. 49, No. 6, June, 2024
A. The gross receipts or gross proceeds
				derived from isolated sales not made by an established business or in an
				established manner are exempt from the tax.
B. "Isolated sale" means the one-time sale of
				an item, or group of items not made by an established business of any kind of
				character.
Example: Seller has an inventory of merchandise which buyer
				  desires to purchase. Seller is in the established business of selling the
				  merchandise. If seller sells all or part of the inventory to buyer, then it is
				  not an isolated sale and seller must collect and remit tax on the gross
				  receipts or gross proceeds derived from the sale of the merchandise unless
				  other exemptions are applicable such as the sale for resale exemption. Sale of
				  non-inventory assets is considered an isolated sale.
C. This exemption does not apply to the sale
				of motor vehicles, trailers, semi-trailers, mobile homes, airplanes, or sales
				of tangible personal property at special events. (See GR-49.1.)
Ark. Code Ann. §
											26-52-401(17)
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-50 - EXEMPTIONS FROM TAX - SECONDHAND AND USED TANGIBLE PERSONAL PROPERTY

Current through Register Vol. 49, No. 6, June, 2024
A. Gross receipts
				or gross proceeds derived from the sale of secondhand and used tangible
				personal property will be exempt only if both the following conditions listed
				below are met:
1. Used property was traded-in
				to and accepted by the seller of tangible personal property as part of the
				purchase price of newly acquired tangible personal property. It is necessary
				that the gross receipts tax be collected and paid on the total consideration
				for the sale of the newly acquired tangible personal property in order to
				qualify for the exemption unless the sale of the newly acquired tangible
				personal property was otherwise exempt under other provisions of the Arkansas
				Gross Receipts Act; and
2.
a.
Arkansas gross receipts tax was collected and paid on the
				  total amount of consideration for the sale of the newly acquired tangible
				  personal property without any deduction or credit for the value of the used
				  tangible personal property; or,
Example: Seller of boats sells a new boat to a customer. The
				  customer trades in his old boat and pays sales tax to seller on the full
				  purchase price of the new boat without any deduction for the trade-in. When
				  seller sells the traded-in used boat, he is not required to collect sales
				  tax.
b. The new personal
				property was originally exempt from tax under the provisions of the Arkansas
				Gross Receipts Act.
Example: Seller of farm equipment sells a new tractor to a
				  farmer. The farmer trades in his old tractor that was purchased tax exempt
				  under the gross receipts tax exemption for farm equipment and machinery. When
				  the seller sells the used tractor, he is not required to collect sales
				  tax.
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-51 - EXEMPTIONS FROM TAX - FARM MACHINERY AND EQUIPMENT, TIMBER HARVESTING EQUIPMENT

Current through Register Vol. 49, No. 6, June, 2024
A. The gross
				receipts or gross proceeds derived from the sale of new and used farm equipment
				and machinery is exempt from gross receipts tax.
B. DEFINITIONS.
1. "Farm equipment and machinery" means
				agricultural implements used exclusively and directly for the agricultural
				production of food or fiber as a commercial business or the agricultural
				production of grass sod or nursery products as a commercial business. Farm
				equipment and machinery does not include implements used in the production and
				severance of timber, motor vehicles that are subject to registration,
				airplanes, or hand tools.
a. The following
				agricultural implements are exempt provided they meet the requirements of
				GR-51(C)(1) and GR-51(C)(2):
Combines, cotton pickers, cotton module builders, cotton
				  trailers, cultivators, discs, farm tractors, (other than garden tractors)
				  harrows, irrigation equipment, milking equipment including milking machines,
				  mechanical pickers, planters, plows, rotary hoes, sprayers, spreaders and
				  threshing machines.
b. All
				terrain vehicles which are not subject to licensing or registration for use on
				the highways.
c. Machinery and
				equipment used in poultry grow-outhouses including heaters, cages, feeding
				systems, storage bins for short term storage of feed, medicators, watering
				systems, augers, fans and generators.
d. Egg racks, poultry loaders and module coop
				systems used by egg and poultry producers in farming operations.
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-51.1 - EXEMPTIONS FROM TAX - LIVESTOCK REPRODUCTION EQUIPMENT

Current through Register Vol. 49, No. 6, June, 2024
A. The gross receipts or gross proceeds
				derived from the sale of livestock reproduction equipment or substances are
				exempt from gross receipts tax.
B.
				DEFINITIONS.
1. "Livestock" means any mammal
				the products of which are used for food or human consumption.
2. "Livestock reproduction equipment"
				includes any of the following used in the reproduction of livestock:
a. Nitrogen;
b. Nitrogen tanks; and
c. Any equipment used to implement the
				reproduction technique.
3. "Livestock reproduction substance" means
				any natural or artificial substance used in the reproduction of livestock,
				including semen or embryos.
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-52 - EXEMPTIONS FROM TAX - VESSELS, BARGES AND TOWBOATS OF AT LEAST FIFTY TONS LOAD DISPLACEMENT; AND RAILROAD CARS, PARTS AND EQUIPMENT

Current through Register Vol. 49, No. 6, June, 2024
A. The gross
				receipts or gross proceeds derived from the sale of vessels, barges, and
				towboats of at least fifty (50) tons load displacement are exempt from the
				tax.
B. The gross receipts or gross
				proceeds derived from the sale of parts and labor used in the repair and
				construction of vessels, barges and towboats of at least fifty (50) tons load
				displacement are exempt from the tax.
C. The gross receipts or gross proceeds
				derived from the sale or lease of railroad rolling stock manufactured for use
				in transporting persons or property in interstate commerce are exempt from the
				tax.
1. For purposes of this section,
				"railroad rolling stock" means completed railroad locomotives and railroad cars
				designed to haul either passengers or freight, and includes repair parts and
				materials used to repair railroad locomotives and railroad cars.
2. Railroad rolling stock does not include
				machinery used to repair or maintain railroad cars, locomotives, track,
				railroad ties, or railroad roadway.
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-53 - EXEMPTIONS FROM TAX - SALES FOR RESALE

Current through Register Vol. 49, No. 6, June, 2024
A. The gross receipts or gross proceeds
				derived from sales for resale to persons regularly engaged in the business of
				reselling the articles or services purchased are exempt from tax provided that
				such sales are made to persons to whom a permit has been issued as provided in
				Ark. Code Ann. §
									26-52-201 et seq.
				and GR-72. A seller may accept a valid retail permit, or resale permit, issued
				by another state. Sellers should refer to GR-79 for the general provisions
				concerning exemption claims and liability.
B. PROOF OF ENTITLEMENT TO EXEMPTION.
1. The sale for resale exemption may be
				claimed through the use of the exemption certificate (Form ST 391) or the
				multistate certificate of exemption (SSTGB Form F0003).
2. A purchaser may also claim the
				sale-for-resale exemption by providing information to the seller that otherwise
				establishes that the purchaser is reselling the articles purchased. Such
				information includes the purchaser's retail permit number or a written
				certification to the seller that the articles or services are purchased for
				resale.
3. Any person repeatedly
				selling the same type of property to the same purchaser for resale may accept a
				blanket certificate covering more than one (1) transaction. A blanket
				certificate may not be used if a period of more than twelve (12) months elapses
				between transactions.
4. If a
				retail permit holder purchases goods, services, wares, and merchandise from a
				seller on a regular basis, then the retail permit holder must notify the seller
				of all purchases which are not for resale and remit the applicable amount of
				tax thereon. If the retail permit holder fails to so notify the seller of
				purchases not intended for resale, then sufficient grounds shall exist for the
				Commissioner to cancel the retail permit of the retail permit holder who failed
				to so notify the seller.
5. A
				seller has ninety (90) days from the date of sale to obtain a fully completed
				exemption certificate or information that is the equivalent of the information
				required by the exemption certificate. If a seller has not obtained an
				exemption certificate or equivalent information and the Department makes a
				request for substantiation of the exemption, the seller has one-hundred twenty
				(120) days from the date of the request to prove by other means that the
				transaction was not subject to sales or use tax or to obtain in good faith a
				fully completed exemption certificate from the purchaser. (See
				GR-79.)
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-55 - EXEMPTIONS FROM TAX - MANUFACTURERS

Current through Register Vol. 49, No. 6, June, 2024
A. The gross receipts or gross proceeds
				derived from sales of tangible personal property consisting of machinery and
				equipment used directly in producing, manufacturing, fabricating, assembling,
				processing, finishing, and/or packaging of articles of commerce at
				manufacturing plants or facilities in Arkansas are exempt from the tax if, and
				only if, the machinery and equipment is purchased and used for purposes set
				forth in this rule.
B. NEW
				MANUFACTURING PLANTS. The gross receipts or gross proceeds derived from the
				sale of machinery and equipment purchased and used to create new manufacturing
				plants or facilities in Arkansas are exempt from the tax if:
1. The machinery and equipment performs one
				or more essential functions and is utilized directly in the manufacturing
				process; and
2. The machinery and
				equipment is utilized in actual manufacturing operations at any time from the
				initial stage where the raw material is first acted upon and changed in any
				essential respect through the completion and packaging of the article of
				commerce, as defined in GR-55(F)(6) of this rule; and
3. The machinery and equipment does not
				consist of hand tools, buildings, transportation equipment, office machines and
				equipment, machinery and equipment used in administrative, accounting, sales or
				other such activities of the business involved, or any and all other machinery
				and equipment not directly used in the manufacturing operation.
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-55.1 - EXEMPTIONS FROM TAX - CHEMICALS USED IN MANUFACTURING

Current through Register Vol. 49, No. 6, June, 2024
A. Chemicals used in manufacturing may be
				exempt from gross receipts or use tax if the following occur:
1. The chemicals become a recognizable,
				integral part of the manufactured goods (see GR-53(C));
2. The chemicals are "equipment" (see
				GR-55.1(D)); or,
3. The provisions
				of this rule are met.
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-56 - EXEMPTIONS FROM TAX - MANUFACTURING EXEMPTION - DIES AND MOLDS

Current through Register Vol. 49, No. 6, June, 2024
A. The gross
				receipts derived from the sale of molds and dies are exempt if:
1. The molds or dies are used directly in
				manufacturing; and
2. The molds or
				dies determine the physical characteristics of the finished product or its
				packaging material.
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-56.1 - EXEMPTIONS FROM TAX - MANUFACTURING EXEMPTION - SPECIFIC BUSINESSES - PRINTERS

Current through Register Vol. 49, No. 6, June, 2024
A. Machinery
				and equipment used directly by a manufacturer in the printing process and which
				otherwise satisfies the requirements of GR-55, is exempt from tax. For purposes
				of the manufacturing exemption, the printing process begins at the time a job
				is received in either electronic form or in the form of drawings or copy and
				includes all processes needed to convert the electronic form, drawing or copy
				into printed material, including the following processes:
1. The initial typesetting and composition,
				producing a paste-up, combining photographs with words, making page makeups and
				taking pictures of them, making proofs and paper for editing, producing
				negatives for plate-ready films, producing an image carrier installed on a
				printing press, or equivalent prepress technology employed to produce an image
				carrier, and the bindery/finishing stage; or
2. Using computers, scanners, proofers,
				typesetters, photographic equipment, film processors, and direct-to-plate
				equipment exclusively in performing any of the processes listed in (1) above.
				Manufacturing printed material does not include using computers, scanners, and
				the other equipment listed to design, write or compose an original item or
				document to be printed.
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-56.2 - EXEMPTIONS FROM TAX - MANUFACTURING EXEMPTION - SPECIFIC BUSINESSES - NEWSPAPER PUBLISHERS

Current through Register Vol. 49, No. 6, June, 2024
A. Machinery
				and equipment used directly in the manufacturing of a printed newspaper by
				newspaper publishers and printers will be exempt from the tax. In all events,
				the machinery and equipment purchased exempt from the tax and used for
				manufacture of a printed newspaper must comply with the requirements of
				GR-55.
B. "Newspaper" is defined to
				mean, a stated short interval publication usually daily or weekly in sheet form
				customarily printed on newsprint consisting of news, editorials, feature
				articles, and advertising intended for general circulation.
C. The manufacturing process of printed
				newspapers begins for purpose of this tax exemption when words are put into a
				network with typesetting and involves all the intermediate processes including
				actual printing of the paper and the assembling of the completed sections ready
				for single copy sale of a new edition. The process begins with typesetting
				which includes what is known in the newspaper trade as a "front-end system".
				The manufacturing process continues through the composition of type for news
				stories and advertising, pasting up of stories, photographs, headlines, the
				necessary camera work attendant to screening half tones, other illustrations,
				the enlargement or reduction of all elements and includes the assembly process
				completed either manually or electronically, the plate-making process involving
				producing full-page size negatives, the making of the offset plate or blanket
				and the printing of the paper. The manufacturing process is complete when the
				newspaper is fully assembled. This requires either hand inserting of the
				separate sections making up the complete newspaper or the use of automated
				inserting systems. Manufacturing includes sub-assembly work leading to
				completion of the finished newspaper. Machinery and equipment used in the post
				manufacturing elements are subject to taxation.
D. Items such as computers, digital cameras,
				scanners, video display terminals, computer hardware, printing presses,
				copiers, pasteup flats, waxing machines, bundle-tying machines and other
				machinery and equipment used directly in the above described manufacturing
				process of printing a newspaper and which otherwise comply with the
				requirements of GR-55 are not subject to tax.
E. Items such as repair or replacement parts,
				tools, supplies and other consumable parts and supplies are not exempt from the
				tax.
Ark. Code Ann. §
											26-52-402
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-57 - EXEMPTIONS FROM TAX - MANUFACTURING EXEMPTION - SPECIFIC BUSINESSES - REFINING AND EXTRACTING OIL, BRINE AND NATURAL GAS - SERVICES TO OIL, BRINE AND NATURAL GAS WELLS

Current through Register Vol. 49, No. 6, June, 2024
A. REFINING -
				EXEMPT. The following items of tangible personal property are examples of
				exempt machinery and equipment purchased by oil, brine, and gas refiners to
				construct new, or expand existing, refining plants or facilities in Arkansas:
1. Tanks or containers in which the actual
				refining takes place;
2. Pipes,
				valves and pumps through which crude oil, brine or natural gas is actually
				transported during refining operations from wellhead through treatment tanks at
				the well site; and
3. Machinery and
				equipment used to refine or process oil, brine, or natural gas into articles of
				commerce.
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-59 - EXEMPTIONS FROM TAX - MANUFACTURING EXEMPTION - SPECIFIC BUSINESS - MINING AND QUARRYING

Current through Register Vol. 49, No. 6, June, 2024
Machinery and equipment purchased and used by mining or
				  quarrying operations are exempt from the tax if the requirements of GR-55 are
				  satisfied. The exemption may be claimed only for machinery and equipment
				  utilized for the actual mining or quarrying operation itself which may include
				  machinery and equipment used to wash, grade and separate the mined or quarried
				  articles of commerce if such operation is carried on at the same site and as
				  part of the continuous mining operation. Dump trucks or other transportation
				  vehicles are not exempt from the tax.
Ark. Code Ann. §
											26-52-402
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-60 - EXEMPTIONS FROM TAX - MANUFACTURING EXEMPTIONS - SPECIFIC BUSINESSES - RICE, SOYBEANS, AND GRAIN DRYING

Current through Register Vol. 49, No. 6, June, 2024
A. The
				following machinery and equipment purchased and used by rice driers, soybean
				driers, and other grain driers constitutes machinery and equipment used
				directly in the process of drying those grains:
1. Bins in which the grain is
				dried;
2. Control panels and motors
				utilized to operate the grain drying process;
3. Conveyor systems used during the drying
				process in the bins.
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-61 - COTTON GINNERS

Current through Register Vol. 49, No. 6, June, 2024
A. The
				following machinery and equipment purchased and used by cotton ginners
				constitutes machinery and equipment used directly in the ginning of cotton:
1. Suction systems, lint cleaners, dryers,
				gin stands, stick machines, feeders, and separators;
2. Conveyor systems used during the ginning
				operation;
3. Cotton presses, end
				scales, strapping machines; and
4.
				Control panels and motors used to operate the ginning process.
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-62 - EXEMPTION FROM TAX - MANUFACTURING EXEMPTION - SPECIFIC BUSINESSES - POULTRY AND LIVESTOCK FEED

Current through Register Vol. 49, No. 6, June, 2024
A. The
				following machinery and equipment purchased and used by poultry and livestock
				feed "manufacturers" constitutes machinery and equipment used directly in the
				making of feed:
1. Mixing and grinding
				machinery and equipment;
2.
				Computers, motors and conveyors utilized during the process of mixing and
				grinding the feed;
3. Bins in which
				the mixing and grinding of feed actually occur and the structure supporting the
				bins; and
4. Scales used to weigh
				the feed for packaging after the mixing and grinding process.
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-63 - EXEMPTIONS FROM TAX - MANUFACTURING EXEMPTION - SPECIFIC BUSINESSES - HATCHING OF POULTRY

Current through Register Vol. 49, No. 6, June, 2024
A. The
				following machinery and equipment purchased and used by poultry hatching
				facilities constitutes machinery and equipment used directly in the hatching of
				poultry:
1. Incubators;
2. Temperature and humidity control machinery
				and equipment directly associated with incubators; and
3. Plastic egg trays, hatchery trays,
				hatchery tray washers and rolling racks used to hold eggs during incubation
				process.
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-64 - EXEMPTIONS FROM TAX - MANUFACTURING EXEMPTIONS - SPECIFIC BUSINESSES - EGG PROCESSORS AND POULTRY PROCESSORS

Current through Register Vol. 49, No. 6, June, 2024
A.
				EGG PROCESSORS. The following machinery and equipment purchased and used by egg
				processors constitutes machinery and equipment used directly in processing
				eggs:
1. Machinery and equipment used in the
				washing, grading, candling, and packaging of eggs;
2. Conveyor systems used to convey eggs
				during the process;
3. Forklift
				trucks used to transport eggs during the process; and
4. Egg wire baskets used to transport eggs to
				retailers.
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-65 - EXEMPTIONS FROM TAX - MANUFACTURING EXEMPTIONS - SPECIFIC BUSINESS - AUTOMOBILE PARTS REBUILDERS, TIRE RETREADERS

Current through Register Vol. 49, No. 6, June, 2024
A. Machinery and equipment purchased and used
				by persons rebuilding or remanufacturing used parts for automobiles, trucks,
				and other mobile equipment powered by electrical or internal combustion engines
				or motors, are exempt from the tax provided that the rebuilt or remanufactured
				parts or retreaded tires are not sold directly to the consumer but are sold for
				resale. In all events, the machinery and equipment purchased and used by
				automobile parts rebuilders and tire retreaders must satisfy the requirements
				of GR-55.
B. Machinery and
				equipment purchased and used by persons retreading tires for automobiles,
				trucks, and other mobile equipment powered by electrical or internal combustion
				engines or motors, are exempt from the tax regardless of whether the retreaded
				tires are sold for subsequent resale. In all events, the machinery and
				equipment purchased and used by tire retreaders must satisfy the requirements
				of GR-55.
Ark. Code Ann. §
											26-52-402
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-66 - EXEMPTIONS FROM TAX - MANUFACTURING EXEMPTION - POLLUTION CONTROL MACHINERY

Current through Register Vol. 49, No. 6, June, 2024
A. The gross
				receipts or gross proceeds derived from the sale of pollution control machinery
				and equipment are exempt from the tax if:
1.
				The machinery and equipment is utilized, either directly or indirectly, by
				manufacturing or processing plants or facilities, or cities or towns in
				Arkansas to prevent or reduce air or water pollution or contamination which
				might otherwise result from the operation of the plant or facility;
				and,
2. The machinery and equipment
				is required by Arkansas or federal law or regulations to be installed and
				utilized to control pollution or contamination as evidenced by written
				documentation from the Arkansas Department of Environmental Quality or the
				United States Environmental Protection Agency.
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-67 - EXEMPTIONS FROM TAX - MANUFACTURING EXEMPTION - SPECIFIC BUSINESS - CONCRETE MIXERS AND BATCH PLANTS, SAWMILLS AND LUMBER MILLS

Current through Register Vol. 49, No. 6, June, 2024
A.
1.
				CONCRETE MIXERS AND BATCH PLANTS. Concrete mix trucks and ready-mix concrete
				batch plants are not machinery and equipment used directly in manufacturing and
				do not qualify for the manufacturing exemption.
2. "Batch" means the quantity produced as the
				result of one operation or the quantity needed for one operation. A concrete
				batch plant combines cement, water, and other raw components for delivery of
				"wet" concrete to a consumer's construction site.
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-69 - EXEMPTIONS FROM TAX - TEXTBOOKS AND OTHER INSTRUCTIONAL MATERIALS

Current through Register Vol. 49, No. 6, June, 2024
A. The gross
				receipts or gross proceeds derived from the sale of textbooks, library books,
				and other instructional materials are exempt from tax if purchased by:
1. An Arkansas school district or Arkansas
				public school that receives state funding; or
2. The State of Arkansas for free
				distribution to Arkansas school districts or Arkansas public schools.
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-70 - SALES TO CREDIT UNIONS

Current through Register Vol. 49, No. 6, June, 2024
A. Sales
				of tangible personal property and taxable services to state chartered credit
				unions are subject to the gross receipts tax. Sellers are required to collect
				and remit the tax on the gross receipts or gross proceeds derived from taxable
				sales made to state chartered credit unions.
B. Pursuant to
				12
				U.S.C. §
										1768, sales to federally chartered
				credit unions are exempt from gross receipts tax.
Ark. Code Ann. §
											26-52-305
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-71 - TAX COLLECTED BY SELLER - PROHIBITED PRACTICE - TAX DUE ON GROSS RECEIPTS - LOCAL TAXES

Current through Register Vol. 49, No. 6, June, 2024
A. The gross
				receipts tax must be collected by the seller of tangible personal property or
				taxable services in all cases except those cases where the tax is to be paid
				directly to the state by the purchaser.
B. TAX RATE. The amount of state tax to be
				collected by the seller is six percent (6%) of the gross receipts or gross
				proceeds derived from the sale.
1.
				Manufacturing Utilities. As of July 1, 2008, the state tax rate on sales of
				natural gas or electricity to a manufacturer for use directly in the
				manufacturing process is four percent (4%) of the gross receipts or gross
				proceeds derived from the sale. From July 1, 2007, through June 30, 2008, the
				state tax rate on sales of natural gas or electricity to a manufacturer for use
				directly in the manufacturing process was four and one-half percent (4 1/2) of
				the gross receipts or gross proceeds derived from the sale. (See Rule
				2007-5.)
2. Food and Food
				Ingredients. As of July 1, 2007, the state tax rate on sales of food and food
				ingredients is three percent (3%) of the gross receipts or gross proceeds
				derived from the sale. (See Rule 2007-3.)
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-72 - SELLERS REQUIRED TO OBTAIN A PERMIT

Current through Register Vol. 49, No. 6, June, 2024
A. Every person liable to remit the tax or
				make a return or report for the purpose of claiming any exemption from the
				payment of the tax levied by Ark. Code Ann. § 2652-101 et seq. shall make
				application for a permit on forms prescribed by the Commissioner. The permit
				application must be completed in all relevant respects and must be signed by
				the person making application for the permit or an authorized agent of the
				person making application for the permit. If an agent makes application for a
				permit on behalf of his principal, a copy of the document authorizing him to
				act on behalf of his principal must be attached to the application. A separate
				permit for each business location in Arkansas must be obtained.
B. Each application shall be accompanied by a
				nonrefundable fee of $50.00.
C.
				Failure to obtain a permit may subject a person making sales of tangible
				personal property or taxable services to either criminal or civil sanctions, or
				both, as provided by law.
D. Every
				permit obtained must be surrendered to the Department of Finance and
				Administration, Revenue Division, Sales and Use Tax Section upon the
				discontinuance of business at any location for which the permit was issued.
				Failure to surrender the permit in such instances shall constitute sufficient
				cause to subsequently refuse the person a permit required by these
				rules.
Ark. Code Ann. §
											26-52-201 et
					 seq.
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-73 - CANCELLATION OF PERMIT; AUTOMATIC EXPIRATION OF PERMIT

Current through Register Vol. 49, No. 6, June, 2024
A. Failure to comply with any requirement of
				Ark. Code Ann. §
									26-52-101 et
				seq. or with any provision of these rules shall constitute sufficient grounds
				for cancellation of any permit issued under the authority of the Code or the
				rules.
B. The permit of any
				taxpayer who has filed twelve (12) consecutive monthly reports reporting zero
				sales shall automatically expire. This does not apply to permits issued to
				taxpayers who are not primarily engaged in selling taxable goods or services.
				The Director shall notify the taxpayer in writing that the permit has expired.
				The taxpayer shall return the permit to the Director within thirty (30) days of
				the date of the notice. Any taxpayer who has received notice but reasonably
				expects to engage in business within the twelve (12) month period following the
				notification may petition the Director to retain the permit. The Director may
				allow any taxpayer who demonstrates to the Director's satisfaction that the
				taxpayer will require a permit to retain the permit.
Ark. Code Ann. §§
											26-52-208;
					 26-52-210
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-75 - LEGAL OPINIONS ISSUED BY THE DEPARTMENT

Current through Register Vol. 49, No. 6, June, 2024
A. The propriety of the taxation or exemption
				of a sale may be substantiated by having a legal opinion rendered by the
				Department, which states that the sale or transaction is taxable or exempt. A
				legal opinion may only be relied upon by a seller if it is addressed to him or
				is tendered by a customer to whom it is addressed and only to the extent that
				all material facts relative to the sale or transaction in question are
				contemplated by the legal opinion request and the legal opinion. Requests for
				legal opinions must specifically describe the person claiming an exemption and
				set forth all material facts relevant to the questioned sale or
				transaction.
B. Legal opinions may
				not be relied upon if more than three (3) years old, but may be renewed on
				request. The effect of legal opinions may change at any time as a result of
				legislative action, court interpretation and changes in these rules without
				actual notice to any holder of a legal opinion.
C. If the legal opinion contains such
				language, as "based upon the facts presented in your opinion request of . . .",
				then a copy of the legal opinion request must accompany the legal opinion at
				all times.
D. Requests for opinions
				will be answered in the order of receipt, provided all facts or other
				information required to respond to the request are submitted with the original
				request. Requests for which additional information must be provided will be
				considered received upon the date all necessary information is
				provided.
E. Opinions issued by any
				other agency, whether formal or informal, are not binding on the
				Department.
F. Opinions issued by
				the Department are subject to the Arkansas Freedom of Information Act, Ark.
				Code Ann. §
									25-19-103(5)(A),
				and will be disclosed once confidential information is redacted of any
				information that identifies a taxpayer or other individual or entity. Such
				information includes not only the name, address, and any other identifying
				information or numbers, such as taxpayer ID numbers, but also any facts that
				would reveal identity. See Ryan & Company AR, Inc. v. Richard Weiss, 371
				Ark. 43 (2007).
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-76 - DETERMINATION OF TAX DUE - SOURCING TRANSACTIONS

Current through Register Vol. 49, No. 6, June, 2024
A. Sales transactions shall be sourced in
				accordance with this rule, unless otherwise provided.
B. APPLICABILITY.
1. Products. The sourcing provisions of this
				rule apply regardless of the characterization of a product as tangible personal
				property or a service.
2. Sellers.
				The provisions of this rule only apply to determine a seller's obligation to
				pay or collect and remit sales or use tax with respect to the seller's retail
				sale of a product.
3. Purchasers.
				The provisions of this rule do not affect the obligation of a purchaser or
				lessee to remit tax on the use of the product to the taxing jurisdiction of
				that use.
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-77 - REPORTS, RETURNS, AND REMITTANCES

Current through Register Vol. 49, No. 6, June, 2024
A. MONTHLY REPORT.
1. The tax shall be due and payable on the
				first (1st) day of every month by any person liable
				for the payment of any tax due.
2.
				It is the duty of all taxpayers (sellers) to deliver to the Director, on or
				before the twentieth (20th) day of each month, a return showing the tax due,
				during the preceding calendar month. Date of mailing of a return as reflected
				by the postmark of the U.S. Postal Service is deemed to be the date of
				delivery. The following information must also appear on the return:
a. The name and address of the business (if
				the name or address of the business has changed, the new name or address must
				be submitted to the Department along with the old name or address of the
				business);
b. The permit number of
				the business; and
c. The amount of
				tax due and payable with the return.
3. The appropriate amount of tax due and
				payable as reflected on the return must accompany the returns as required
				herein.
4. Although separate
				permits are required for each business location in Arkansas, every taxpayer
				shall file a single report combining all of the tax due derived from sales at
				its Arkansas locations that are registered with the Director under the same
				Federal Employer's Identification Number ("FEIN") or Social Security number.
				This provision applies regardless of whether the taxpayer is an individual,
				corporation, partnership, limited liability company, or other entity.
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-78 - CASH BASIS RETURNS

Current through Register Vol. 49, No. 6, June, 2024
A. Any
				taxpayer who does business wholly or partly on a credit basis may apply to the
				Director for permission to prepare returns on the basis of cash actually
				received. If the Director determines that the State of Arkansas will not suffer
				any loss of tax upon the gross receipts or gross proceeds derived by the
				applicant from the sale of tangible personal property or taxable services due
				to the cash basis method of accounting for gross receipts, the application
				shall be granted.
B. Any taxpayer
				making such application shall be taxable on the gross receipts collected by him
				during the taxable period including, but not limited to, all service charges,
				late payment penalties collected, bad debts, losses or expenses. No person may
				report on the cash basis unless permission has been expressly granted by the
				Director.
C. Any taxpayer who has
				received permission from the Director to report sales tax on a cash basis must
				collect local tax on all monies received by the taxpayer after the effective
				date of any applicable local tax, regardless of the date of service or the
				billing date.
D. Taxpayer must keep
				accurate and complete records which reflect the amount of cash sales and credit
				sales. These records must show collections on accounts and be open for
				inspection and audit by the Director or his agents. See GR-18(J) and Ark. Code
				Ann. §
									26-52-309.
Ark. Code Ann. §
											26-52-502
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-80 - RECORD KEEPING AND RECORD RETENTION

Current through Register Vol. 49, No. 6, June, 2024
A. PURPOSE. The purpose of this rule is to
				define the requirements imposed on taxpayers for the maintenance and retention
				of books, records, and other sources of information under the Arkansas Tax
				Procedure Act (codified at Ark. Code Ann. § 2618-101 et seq.). It is also the
				purpose of the rule to address these requirements where all or a part of the
				taxpayer's records are received, created, maintained or generated through
				various computer, electronic and imaging processes and systems. This rule will
				govern the record keeping and record retention requirements of taxpayers unless
				otherwise provided by law.
B.
				DEFINITIONS.
1. "Database Management System"
				means a software system that controls, relates, retrieves, and provides
				accessibility to data stored in a database.
2. "Electronic data interchange" or "EDI
				technology" means the computer-to-computer exchange of business transactions in
				a standardized structured electronic format.
3. "Hard copy" means any documents, records,
				reports or other data printed on paper.
4. "Machine-sensible record" means a
				collection of related information in an electronic format. Machine-sensible
				records do not include hard-copy records that are created or recorded on paper
				or stored in or by an imaging system such as microfilm, microfiche, or
				storage-only imaging systems.
5.
				"Storage-only imaging system" means a system of computer hardware and software
				that provides for the storage, retention and retrieval of documents originally
				created on paper. It does not include any system, or part of a system, that
				manipulates or processes any information or data contained on the document in
				any manner other than to reproduce the document in hard copy or as an optical
				image.
6. "Taxpayer" as used in
				this rule means any person subject to or liable for any state tax; any person
				required to file a return, or to pay, or withhold and remit any tax required by
				the provisions of any state tax law; or any person required to obtain a license
				or a permit or to keep any records under the provisions of any state tax
				law.
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-81 - ASSESSMENTS

Current through Register Vol. 49, No. 6, June, 2024
If, upon audit or examination, the Director or his duly
				  authorized agent determines there is additional tax due, the Director shall
				  prepare a schedule reflecting the amount of additional tax, interest and
				  penalties payable and shall furnish to the taxpayer, if available, a copy of
				  this schedule A "Notice of Proposed Assessment" and "Taxpayer's Bill of Rights"
				  shall also be mailed to the taxpayer at the address listed upon the application
				  for retail permit or the actual business address of the taxpayer or hand
				  delivered to the taxpayer.
Ark. Code Ann. §§
											26-18-401
					 et seq.;
					 26-18-801 et
					 seq.