Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Rule 006.05.00-002 - Gross Receipts Regulation GR-56.2: Manufacturing Exemption - Newspaper Publishers - To specify what is considered the process of manufacturing a newspaper including the machinery and equipment that is exempt from or, non-exempt, from tax

Current through Register Vol. 49, No. 6, June, 2024
GR-
			 56.2.
EXEMPTIONS FROM TAX - MANUFACTURING EXEMPTION -
			 SPECIFIC BUSINESS - NEWSPAPER PUBLISHERS:
Pursuant to the authority provided in Ark. Code Ann. &
				19-1-208
				(1987), Ark. Code Ann. &
				26-18-301
				(1987) and Ark. Code Ann. &
				25-15-201, et
				seq. (1987) (the Arkansas Administrative Procedures Act), the Director of the
				Arkansas Department of Finance and Administration and the Commissioner of
				Revenue for the State of Arkansas do hereby promulgate the following
				Regulation. This Regulation is to be read in conjunction with the previous
				Regulations of the Department of Finance and Administration ("Department") and
				laws of this State.
" GR56.2 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 mashinary 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."