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-18 - WHAT CONSTITUTES GROSS RECEIPTS - EXAMPLES

Current through Register Vol. 49, No. 6, June, 2024
A. DELIVERY CHARGES. Delivery charges are
				part of the gross receipts or gross proceeds on which the tax must be collected
				and remitted unless the charges are billed directly to the purchaser by a
				carrier other than the seller.
1. If the
				tangible personal property being shipped is exempt from sales and use tax, the
				delivery charges are also exempt from tax.
2. If a shipment includes tax-exempt property
				and taxable property, the seller must pay the tax imposed only on the
				percentage of the delivery charge allocated to the taxable property. To
				determine the percentage, the seller may use either of the following options:
a. A percentage based on the total sales
				price of the taxable property compared to the total sales price of all property
				in the shipment; or
b. A percentage
				based on the total weight of the taxable property compared to the total weight
				of all the property in the shipment.
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-19 - PERSONS REQUIRED TO COLLECT AND REMIT TAX - PAWNBROKERS AND SELLERS OF USED TANGIBLE PERSONAL PROPERTY

Current through Register Vol. 49, No. 6, June, 2024
Pawnbrokers and sellers of used tangible personal property
				  are sellers of taxable goods and must obtain a permit All sales made by
				  pawnbrokers or other sellers of used property are taxable sales (See GR-50 for
				  the exemption applicable to trade-in property.)
Ark Code Ann §
											26-52-301(1)
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-20 - LEASES AND RENTALS

Current through Register Vol. 49, No. 6, June, 2024
A. GENERAL.
				Persons in the established business of leasing or renting articles of tangible
				personal property to consumers are sellers and must collect and remit tax upon
				the gross receipts or gross proceeds derived from the lease or rental of the
				property.
B. DEFINITIONS.
1. "Commercial shipping" means either:
a. The service of transporting the personal
				property of another for gain or profit; or
b. Transporting one's goods from place to
				place if the expense of renting the vehicle is an ordinary and necessary
				expense of the lessee's business operation for federal and Arkansas income tax
				purposes.
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-21 - PERSONS REQUIRED TO COLLECT AND REMIT TAX - SPECIFIC BUSINESSES - CONTRACTORS

Current through Register Vol. 49, No. 6, June, 2024
A.
				DEFINITIONS.
1. "Consumer" or "user" means
				the person to whom the taxable sale is made or to whom the taxable services are
				furnished. All contractors are deemed to be consumers or users of all tangible
				personal property including materials, supplies, and equipment used or consumed
				by them in performing any contract, and the sales of all such property to
				contractors are taxable sales. The contractor must pay tax at the time of
				purchase or pay tax at the time the materials are withdrawn from stock for use
				in the performance of the contract.
A contractor cannot rely on the direct pay permit of the
				  other party to the contract for payment of the tax on the construction
				  materials.
2. "Contract"
				means any agreement or undertaking to construct, manage or supervise the
				construction, erection, alteration or repair of any building or other
				improvement or structure affixed to real estate, including any of their
				component parts. The term contract shall not include a contract to produce
				tangible personal property.
3.
				"Contractor" means any person who contracts or undertakes to construct, manage
				or supervise the construction, erection, alteration or repair of any building
				or other improvement or structure affixed to real estate, including any of
				their component parts.
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-21.1 - RATES PROPERTY PURCHASED FOR USE IN THE PERFORMANCE OF A CONSTRUCTION CONTRACT - INCREASE IN SALES AND USE TAX RATES

Current through Register Vol. 49, No. 6, June, 2024
A. Materials purchased for use in
				construction contracts that become recognizable components of the completed
				project are subject to state and local sales and use tax. A contractor that
				purchases these materials is entitled to a rebate on certain increases in state
				and local sales or use taxes if the following conditions are satisfied:
1. The materials must be used in a
				construction contract entered into before the effective date of the tax
				increase;
2. The materials must be
				purchased within five (5) years from the effective date of the tax increase;
				and
3. The contractor paid the
				additional sales or use tax to the seller.
Example 1: Pulaski County local sales and use tax is
				  increased by 1% effective October 1, 2008. Purchases of materials used in
				  completing construction contracts entered into prior to October 1, 2008 (but
				  after January 1, 2008), will be eligible for a rebate of the additional 1% tax
				  until September 30, 2013.
Example 2: On November 1, 2008, a construction contractor
				  purchases a hammer and 50 pounds of nails for use in framing an apartment
				  building. The construction contract was signed prior to the October 1, 2008
				  (but after January 1, 2008), tax increase. The additional tax increase is due
				  on the sale of the hammer because the hammer will not become a recognizable
				  part of the building. The nails are subject to the rebate because the nails,
				  although they cannot be seen, are a recognizable part of the building.
4. This rule is not applicable to
				cost-plus contracts that allow the contractor to pass any additional tax on to
				the principal as a part of the contractor's cost.
5. For the purposes of the rebate,
				"construction contract" means a contract to construct, manage, or supervise the
				construction, erection, or substantial modification of a building or other
				improvement or structure affixed to real property. Construction contract does
				not mean a contract to produce tangible personal property.
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-22 - PERSONS REQUIRED TO COLLECT AND REMIT TAX - SPECIFIC BUSINESS - FUNERAL HOMES AND FUNERAL DIRECTORS

Current through Register Vol. 49, No. 6, June, 2024
A.
				GENERALLY. Funeral homes or funeral directors must collect and pay the tax upon
				the gross receipts or gross proceeds of all sales of tangible personal property
				sold by them in connection with the services they offer.
B. INVOICING. Where the funeral home or
				funeral director separately states the charges for items of tangible personal
				property on his bill or invoice, then the tax should be collected and remitted
				on the gross receipts or gross proceeds derived from the sale of the items of
				tangible personal property.
C.
				SHIPMENT. Where a corpse is shipped by one funeral home located in Arkansas to
				another funeral home located in Arkansas, the tax must be collected and
				remitted on the gross receipts or gross proceeds derived from the sale of the
				casket, shipping case, shipping box and freight, by the selling funeral home.
				If, however, the body is shipped outside the State of Arkansas, then see GR-5
				for applicable rules.
D. CONSUMERS.
				Funeral homes and funeral directors are considered the consumers of preparation
				room supplies and equipment, display room equipment, chapel furnishings and
				equipment, and cemetery equipment, and must pay the tax to the suppliers of
				these goods at the time of purchase.
E. PREPAID FUNERAL CONTRACTS.
1. When tangible personal property is sold
				through a pre-paid funeral plan, the funeral home or funeral director has the
				following options:
a. Remitting gross receipts
				tax when the property is provided to the customer. The tax shall be calculated
				at the rate in effect when the property is provided; or
b. Remitting gross receipts tax on the date
				the contract is purchased. The tax shall be calculated at the rate in effect
				when the contract is purchased.
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-23 - RADIO, VIDEO AND TELEVISION TAPES AND FILMS

Current through Register Vol. 49, No. 6, June, 2024
Retail sales of radio, video and television tapes and films
				  containing commercial or other messages, including CDs, DVDs, and any digital
				  image media, are subject to the tax. Producers must collect and remit the tax
				  from their clients or customers on the total receipts from the production of
				  tapes, films, and other such media without deducting any production costs
				  attributable to the tapes, films, or media. The sale of a tape, film, or media
				  is complete when the client is billed, even though the seller may retain
				  possession of the tape, film, or media, or may deliver it directly to a radio
				  or television station for the convenience of the client. The tax does not apply
				  to the sale of broadcasting time, or to any other service which does not
				  contribute to the production of an article of tangible personal property by the
				  seller, nor does it apply to a tape, film, or media prepared by an advertising
				  agency for its client as part of an advertising campaign. (See GR-46.)
Example 1: Producer is directed to videotape one or more
				  events, sites, persons, or other occurrence. Producer delivers the videotape to
				  its customer. Producer must collect tax on the total amount of the
				  consideration that it receives from the customer for the videotape.
Example 2: Producer is directed to videotape a commercial and
				  deliver the tape to a television station for broadcast. Producer does not
				  otherwise assist the customer in planning and implementing the advertising
				  program of which the videotaped commercial is a part. Producer must collect tax
				  on the total consideration it receives for the videotape.
Ark. Code Ann. §
											26-52-301
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-24 - SPECIAL RULES FOR FUNDRAISING AND OTHER INFREQUENT SALES

Current through Register Vol. 49, No. 6, June, 2024
A. PTA/PTOs or
				OTHER SCHOOL ORGANIZATIONS. A PTA/PTO or other school organization that
				conducts fundraising activities must pay tax on purchases for resale but does
				not have to collect tax on the sales of the items. However, if the vendor
				provides order forms that are distributed to the students and the students take
				orders for the vendor, the vendor is responsible for sales tax on the sales
				made by the students. The students are permitted to collect tax on the vendor's
				behalf. However, if the students do not collect the tax for the vendor, the
				vendor must remit the total tax due to the state. Tax is due on the gross
				receipts received by the students from the purchaser.
B. EXEMPT ORGANIZATIONS. Exempt organizations
				may purchase items exempt from tax. For a list of organizations that are
				statutorily exempt from tax on their purchases, see GR-31. Exempt organizations
				are not specifically exempt from tax on sales made by the organizations. An
				exempt organization that operates as an established business is required to
				collect tax on its sales.
C.
				CHARITABLE NONPROFIT ORGANIZATIONS. Charitable organizations that are not
				engaged in business for profit are not generally required to collect tax on
				sales made by the charitable organization. However, if a charitable
				organization makes sales of new tangible personal property and competes with
				sales by for-profit businesses, then the sales by the charitable organization
				are taxable. See GR-39(C) for information regarding whether sales are
				considered to compete with those of for-profit businesses.
Ark. Code Ann. §§
											26-52-401;
					 26-52-430;
					 26-63-403;
					 26-63-404
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-25 - PERSONS REQUIRED TO COLLECT AND REMIT TAX - SPECIFIC BUSINESS - SELLERS OF COMPUTER HARDWARE AND COMPUTER SOFTWARE

Current through Register Vol. 49, No. 6, June, 2024
A. Sales tax is levied on the gross receipts
				or gross proceeds received from sales of computer hardware, computer software,
				and the service of repairing or maintaining computer equipment or hardware in
				any form. Software that is delivered electronically or by load and leave is not
				taxable.
B. DEFINITIONS.
1. "Computer" means an electronic device that
				accepts information in digital or similar form and manipulates it for a result
				based on a sequence of instructions.
2. "Computer software" means a set of coded
				instructions designed to cause a computer or automatic data processing
				equipment to perform a task. Computer software does not include software that
				is delivered electronically or by load and leave.
3. "Delivered electronically" means delivered
				to the purchaser by means other than tangible storage media.
4. "Electronic" means relating to technology
				having electrical, digital, magnetic, wireless, optical, electromagnetic, or
				similar capabilities.
5. "Load and
				leave" means delivery to the purchaser by use of a tangible storage media in
				which the tangible storage media is not physically transferred to the
				purchaser.
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-26 - PERSONS REQUIRED TO COLLECT AND REMIT TAX - SPECIFIC BUSINESSES - SELLERS OF BEER, WINE, LIQUOR AND OTHER INTOXICATING BEVERAGES

Current through Register Vol. 49, No. 6, June, 2024
A. All sellers of beer, wine, liquor, and
				other intoxicating beverages must collect and remit the tax upon the gross
				receipts or gross proceeds derived from the sale of those items to the consumer
				whether the sale is by the bottle or by the drink for off-premises or
				on-premises consumption. All state and local sales taxes must be paid in full
				prior to the renewal of a liquor permit or license.
B. An establishment which charges an entrance
				fee or "cover charge" must collect and remit the tax on the gross receipts or
				gross proceeds received by it or any other person as a result of the entrance
				fee or "cover charge" in addition to the collection and remittance of tax upon
				the gross receipts or gross proceeds derived from all sales of tangible
				personal property. Dues or fees paid to private clubs that hold a permit
				allowing for the sale, dispensing, or serving of alcoholic beverages of any
				kind on the premises are subject to tax, unless the private club is a
				charitable organization. (See GR-39 and GR-11.)
C. TEN PERCENT (10%) SUPPLEMENTAL TAX.
1. In addition to the gross receipts tax,
				holders of mixed drink permits (except private club permits) issued by the
				Alcoholic Beverage Control Division must collect and remit the ten percent
				(10%) supplemental gross receipts tax on all sales of alcoholic beverages
				except beer and wine
2. In addition
				to the gross receipts tax, holders of private club permits issued by the
				Alcoholic Beverage Control Division must collect and remit the 10% supplemental
				gross receipts tax upon all charges to members for the preparation and serving
				of mixed drinks or for the cooling and serving of beer and wine. A private club
				which also has a beer permit should collect the state and local sales tax but
				not the ten percent (10%) supplemental tax on its sales of beer.
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-27 - PERSONS REQUIRED TO COLLECT AND REMIT TAX - SPECIFIC BUSINESS - WHOLESALERS AND JOBBERS

Current through Register Vol. 49, No. 6, June, 2024
Wholesalers and jobbers must collect and remit the tax on the
				  gross receipts or gross proceeds derived from all sales to consumers or sales
				  to retailers who do not have valid permits even though the sales are in
				  wholesale quantities, or sales to retailers who are not regularly in the
				  business of reselling the articles purchased.
Ark. Code Ann. §§
											26-52-517;
					 26-52-401(12)(A)
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-28 - EXEMPTIONS FROM TAX - SALES OF ITEMS PURCHASED WITH FOOD STAMPS

Current through Register Vol. 49, No. 6, June, 2024
A. Gross receipts
				and gross proceeds derived from the sale of tangible personal property lawfully
				purchased with food stamps or food coupons issued in accordance with the Food
				Stamp Act of 1964, and the gross receipts or gross proceeds derived from the
				sale of tangible personal property lawfully purchased with food instruments or
				vouchers issued under the Special Supplemental Food Program for Women, Infants
				and Children ("WIC") in accordance with Section 17 of the Child Nutrition Act
				of 1966, as amended, are exempt from the Gross Receipts Tax. If consideration
				other than food stamps, food coupons, food instrument, or vouchers is used in
				any sale, that portion of the sale shall be fully taxable.
B. Gross receipts and gross proceeds derived
				from the sale of food and food ingredients purchased through bids under the WIC
				program are exempt from the Gross Receipts Tax.
C. The tax exemption provided by this Rule
				shall expire if the exemption is no longer required for full participation in
				the food stamp or WIC program.
Ark. Code Ann. §
											26-52-401(27)(A)
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-29 - EXEMPTIONS FROM TAX - FUEL OIL, MOTOR FUEL, MOTOR OIL, LUBRICANTS, CRUDE OIL, AND AUTOMOBILE PARTS

Current through Register Vol. 49, No. 6, June, 2024
A. The
				gross receipts or gross proceeds derived from sales of motor fuel or special
				motor fuel are exempt from the tax if the motor fuel tax or special motor fuel
				tax has been paid to the State of Arkansas. The gross receipts or gross
				proceeds derived from sales of fuel oil, motor oil and lubricants are subject
				to tax.
B. The gross receipts or
				gross proceeds derived from sales of unprocessed crude oil are exempt from the
				tax.
C. The gross receipts or gross
				proceeds derived from the sale of motor fuel or special motor fuel to the
				owners or operators of motor buses operated on designated streets according to
				regular schedule, under municipal franchise and which are used for municipal
				transportation purposes are exempt from the tax.
D. The gross receipts or gross proceeds
				derived from sales of special fuel or petroleum products for consumption by
				vessels, barges, other commercial watercraft and railroads are exempt from the
				tax. For purposes of this subsection the term "vessel" shall mean and describe
				any motor driven watercraft used for commercial purposes for the transportation
				of tangible property or persons on the rivers, lakes and navigable streams of
				Arkansas.
E. That portion of the
				gross receipts or gross proceeds derived from the sale of automobile parts
				which constitute "core charges" which are received for the purpose of securing
				a trade-in for the article purchased is exempt from the tax except that when
				the article is not traded in, then the tax is due on the "core charge".
Example 1: If a customer purchases a new battery for $40.00
				  plus a core charge of $8.00 and returns a used core for $8.00, tax would be due
				  only on the $40.00 purchase price because the core was traded in or
				  returned.
Example 2: If a customer purchases a new battery for $40.00
				  plus a core charge of $8.00 with no core traded in, tax would be due on the
				  total consideration of $48.00.
Ark. Code Ann. §§
											26-52-401(11), (23),
					 and (26);
					 26-52-417
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-30.1 - EXEMPTIONS FROM TAX - REPAIR OF COMMERCIAL JET AIRCRAFT

Current through Register Vol. 49, No. 6, June, 2024
A. The gross receipts or gross proceeds
				derived from the alteration, addition, cleaning, refinishing, replacement or
				repair of commercial jet aircraft, commercial jet aircraft components or
				commercial jet aircraft subcomponents are exempt from sales tax.
B. The gross receipts or gross proceeds
				derived from the sale of parts or other tangible personal property which is
				incorporated into or becomes a part of commercial jet aircraft, commercial jet
				aircraft components or commercial jet aircraft subcomponents are exempt from
				sales or use tax.
C. "Commercial
				jet aircraft" means any commercial, military, private, or other turbine or
				turbojet aircraft having a certified maximum take-off weight of more than
				12,500 pounds.
Ark. Code Ann. §
											26-52-401(28)
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-31.1 - EXEMPTION FROM TAX - VOLUNTEER FIRE DEPARTMENTS

Current through Register Vol. 49, No. 6, June, 2024
A. The gross receipts or gross proceeds
				derived from the sales of fire protection equipment and emergency equipment to
				be owned and exclusively used by volunteer fire departments are exempt from all
				state and local sales or use taxes.
B. The gross receipts or gross proceeds
				derived from the sales of supplies and materials used in the construction and
				maintenance of buildings owned by volunteer fire departments, including
				improvements and fixtures, are exempt from all state and local sales or use
				taxes.
C. DEFINITIONS.
1. "Protection equipment" means items for
				human wear and designed as protection of the wearer against injury or disease
				or as protections against damage or injury of other persons or property, but is
				not suitable for general use.
2.
				"Emergency equipment" means any tangible personal property used directly in the
				performance of emergency services by a volunteer fire department such as fire
				fighting, hazardous or toxic waste materials response and recovery, search and
				rescue, and other services which prevent, minimize, or repair injury and damage
				resulting from major emergencies or from disasters.
3. "Volunteer fire department" means the
				following:
a. A rural volunteer fire
				department, including a fire department organized by a city that provides fire
				protection to areas both within and without the city limits, formed as a
				subordinate service district of the county or an improvement district, or a
				subscription fire service department formed as a nonprofit organization for
				fire protection under the laws of this state;
b. A fire department in which seventy-five
				percent (75%) or more of the fire fighters employed are volunteer fire
				fighters, who receive no regular compensation for their services;
c. A fire department with service areas
				established by the appropriate quorum courts pursuant to Ark. Code Ann. §
											14-284-207;
				and
d. A fire department registered
				with the Administrator of the Office of Fire Services.
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-32 - EXEMPTIONS FROM TAX - FUEL FOR MANUFACTURING

Current through Register Vol. 49, No. 6, June, 2024
A. STEEL MILLS. The gross receipts or gross
				proceeds derived from the sale of electricity and natural gas to qualified
				manufacturers of steel for use in connection with the steel mill are exempt.
				"Qualified manufacturer of steel" means a natural person, company or
				corporation engaged in the manufacture, refinement or processing of steel and
				more than fifty percent (50%) of the electricity or natural gas consumed by the
				manufacturer is used either:
1. To power an
				electric arc furnace or furnaces, continuous casting equipment, or rolling mill
				equipment in connection with melting, continuous casting, or rolling of steel;
				or,
2. In the preheating of steel
				for processing through a rolling mill.
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-33 - EXEMPTIONS FROM TAX - FOODSTUFFS SOLD TO GOVERNMENTAL AGENCIES AND NONPROFIT FOOD DISTRIBUTION AGENCIES

Current through Register Vol. 49, No. 6, June, 2024
A. The gross receipts or gross proceeds
				derived from the sale of food or food ingredients or prepared food to
				governmental agencies for free distribution to any public, penal, or
				eleemosynary institution or for free distribution to poor and needy individuals
				are exempt from the tax. The gross receipts or gross proceeds derived from the
				sale of food or food ingredients to nonprofit agencies organized under the
				Arkansas Nonprofit Corporation Act, §
									4-28-201, et seq., for free
				distribution to the poor and needy are exempt from gross receipts
				tax.
B. DEFINITIONS.
1. "Governmental agencies" mean any agency or
				department of the United States, the State of Arkansas, counties, cities,
				towns, or school districts. Government agencies do not include a private
				non-profit organization funded wholly or in part by public monies.
2. "Public institution" means any institution
				operated, or managed by a governmental agency, or supported in whole or
				substantial part by public funds, for the benefit of the economically
				disadvantaged.
3. "Eleemosynary
				institution" means any charitable and non-profit organization which is operated
				primarily for the benefit of the economically disadvantaged.
4. "Free distribution" means that no
				consideration is required prior to, subsequent to, or at the time of
				distribution.
5. "Poor and needy"
				means individuals who are economically disadvantaged (e.g., individuals who
				receive little or no income in any form or fashion).
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-34 - EXEMPTIONS FROM TAX - MOTOR VEHICLES PURCHASED BY SPECIFIC INDIVIDUALS AND ORGANIZATIONS

Current through Register Vol. 49, No. 6, June, 2024
A. The gross
				receipts or gross proceeds derived from sales of motor vehicles licensed for
				use on the highway and motor vehicle adaptive equipment to disabled veterans
				who have purchased the vehicles or the equipment with the financial aid of the
				United States Department of Veterans Affairs pursuant to the provisions of 38
				U.S.C. §§ 1901-1905 are exempt from the tax. An official letter from the United
				States Department of Veterans Affairs verifying this fact will be accepted as
				proof of entitlement to this exemption.
B. Gross receipts and gross proceeds derived
				from the sale of new automobiles to a veteran of the United States Armed
				Services who is blind as the result of a service connected injury shall be
				exempt from the Arkansas Gross Receipts Tax. This exemption shall apply only to
				those persons who furnish the Department with a statement from the United
				States Department of Veterans Affairs certifying that such individual is a
				veteran of the United States Armed Services and has been blinded as the result
				of a service connected injury. This statement shall be supplied to the
				Department upon application for a vehicle license. This exemption shall be
				available only on the gross receipts or gross proceeds derived from the sale of
				one (1) new or used automobile every two (2) years to a veteran who complies
				with the requirements of this Section. As used herein, "automobile" means a
				passenger automobile or pickup truck but does not include trucks with a maximum
				gross load in excess of three-quarters of a ton and does not include any
				trailer.
C. The gross receipts or
				gross proceeds derived from the sale of school buses to school districts in
				Arkansas are exempt from the tax. Similarly, the gross receipts or gross
				proceeds derived from the sale of school buses to private school bus operators
				are exempt from the tax if all of the following criteria are satisfied:
1. At the time of the bus purchase, the
				private school bus operator has already contracted with an Arkansas school
				district to provide school bus services to students within the
				district;
2. The school buses
				purchased by the private school bus operator will be used solely and
				exclusively to transport the school district's students as required under the
				contract;
3. The school district is
				obligated under the terms of the contract to pay any taxes related to the
				school buses; and
4. The buses must
				be equipped with flashing white strobe lights and bus mounted "crossing gates"
				as required under Ark. Code Ann. §
										6-19-117.
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-35 - EXEMPTIONS FROM TAX - SCHOOLS

Current through Register Vol. 49, No. 6, June, 2024
A.
				There is no general exemption that applies to all sales to school districts or
				public schools. There is no general exemption that applies to sales by school
				districts or public schools. However, there are certain specific exemptions
				that apply to schools and school districts that are addressed or referenced in
				this rule.
B. TEXTBOOKS AND
				INSTRUCTIONAL MATERIALS. For sales of textbooks and instructional materials see
				GR-69.
C. SALES OF FOOD. Sales of
				food or food ingredients or prepared food in public, common, high school, or
				college cafeterias and lunchrooms that are operated primarily for teachers and
				pupils and not operated for profit or for the general public are exempt from
				sales tax. Any kindergarten, middle school, junior high school, high school, or
				college that operates a cafeteria or lunchroom primarily for teachers and
				pupils and not for the general public and that is not operated for profit is
				not required to collect tax on its sales of food or food ingredients or
				prepared food.
D. PTA/PTO
				FUNDRAISING. For special rules pertaining to fundraising see GR-24.
E. SCHOOL BUSES AND MOTOR VEHICLES. For sales
				of school buses or motor vehicles see GR-34.
Ark. Code Ann. §§
											26-52-401(3);
					 26-52-410;
					 26-52-437
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-36 - EXEMPTIONS FROM TAX - PERSONS ELIGIBLE FOR MEDICARE AND MEDICAID

Current through Register Vol. 49, No. 6, June, 2024
A. The gross
				receipts or gross proceeds derived from the sale or rental of medical equipment
				by medical equipment suppliers doing business in Arkansas to persons enrolled
				in and eligible for either Medicare or Medicaid programs as described in
				42 USC §
										1395 and §
									1396
				et seq. of the Federal Social Security Act or successor program having the same
				purpose, or of any other present or future United States government subsidized
				health care program, are exempt from tax. This exemption applies only to the
				gross receipts or gross proceeds received directly or indirectly through an
				organization administering such program in Arkansas pursuant to a contract with
				the United States government in accordance with the terms thereof.
Example: Seller is a medical equipment supply store and
				  purchaser is receiving Medicare benefits. Seller charges $150.00 for the sale
				  of a wheelchair to buyer. Seller is reimbursed $100.00 of the purchase price
				  from the program administrator who is under contract with the United States
				  government to administer the Medicare program. Seller will charge and collect
				  tax only on $50.00 of the sale price for the wheelchair. (See also
				  GR-38.2.)
B. Medical
				equipment includes, but is not limited to, durable medical equipment, mobility
				enhancing equipment, prosthetic devices, contact lenses, and corrective
				eyeglasses.
Ark. Code Ann. §
											26-52-401(20)
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-38 - EXEMPTIONS FROM TAX - PRESCRIPTION DRUGS AND OXYGEN

Current through Register Vol. 49, No. 6, June, 2024
A. The gross receipts or gross proceeds
				derived from the sale, purchase, or use of prescription drugs by licensed
				pharmacists, hospitals, or physicians when the drugs are sold, purchased, or
				administered for human use shall be exempt from tax.
B. DEFINITIONS.
1. "Drug" means a compound, substance, or
				preparation, and any component of a compound, substance, or preparation, other
				than "food and food ingredients," "dietary supplements," or "alcoholic
				beverages" that is the following:
a.
				Recognized in the official United State Pharmacopoeia, official Homeopathic
				Pharmacopoeia of the United States, or official National Formulary, and
				supplement to any of them; or
b.
				Intended for use in the diagnosis, cure, mitigation, treatment, or prevention
				of disease; or
c. Intended to
				affect the structure or any function of the body.
d. Examples of drugs include, but are not
				limited to, the following: radioactive isotopes; medical grade gases; vaccines;
				and legend drugs.
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-38.1 - EXEMPTIONS FROM TAX - INSULIN AND TEST STRIPS

Current through Register Vol. 49, No. 6, June, 2024
The gross receipts or gross proceeds derived from the sale of
				  insulin and test strips for testing human blood sugar levels are exempt from
				  tax.
Ark. Code Ann. §
											26-52-419
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-38.2 - EXEMPTIONS FROM TAX - DURABLE MEDICAL EQUIPMENT, MOBILITY-ENHANCING EQUIPMENT, PROSTHETIC DEVICES, AND DISPOSABLE MEDICAL SUPPLIES

Current through Register Vol. 49, No. 6, June, 2024
A. The gross receipts or gross proceeds
				derived from the rental, sale, or repair of the following items are exempt from
				tax if prescribed by a physician: durable medical equipment; mobility-enhancing
				equipment; disposable medical supplies; or a prosthetic device.
B. This exemption shall only apply to durable
				medical equipment, mobility-enhancing equipment, disposable medical supplies,
				or a prosthetic device sold to a specific patient pursuant to a prescription
				written by a physician prior to sale.
C. Physicians, hospitals, nursing homes, and
				long-term care facilities are considered consumers of all property and services
				which they purchase for use in the practice of their professions. Physicians,
				hospitals, nursing homes, and long-term care facilities are liable for the
				sales and use tax on their purchases unless the requirements of this exemption,
				or other applicable exemption, are satisfied.
D. For the purpose of this rule, "physician"
				means a person licensed under Ark. Code Ann. §
									17-95-401 et
				seq. and includes osteopathic physicians (D.O.). The term physician does not
				include chiropractors, podiatrists, dentists, optometrists, or physical
				therapists.
E. DURABLE MEDICAL
				EQUIPMENT.
1. "Durable medical equipment"
				means equipment, including repair and replacement parts for the equipment,
				which meet the following conditions:
a. Can
				withstand repeated use;
b. Is
				primarily and customarily used to serve a medical purpose;
c. Generally is not useful to a person in the
				absence of illness or injury;
d. Is
				not worn in or on the body; and
e.
				Is for home 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-38.3 - SALES BY OPHTHALMOLOGISTS, OPTOMETRISTS, OPTICIANS, AND EYEWEAR RETAILERS

Current through Register Vol. 49, No. 6, June, 2024
A.
				DEFINITIONS.
1. "Doctor" means an
				ophthalmologist or optometrist.
2.
				"Eyewear retailer" means a business enterprise engaged primarily in the retail
				sale of eyewear and eyewear related products. Examples of an eyewear retailer
				include a discount store's in-house optical shop or vision center and national
				chain store vision centers. An eyewear retailer may (and often does) offer the
				services of one or more optometrists.
3. "Independent optician" means a
				self-employed optician engaged in the business of selling and servicing eyewear
				and eyewear related products.
4.
				"Corrective eyeglasses" means eyewear this is designed to improve or protect
				the patient's vision. Corrective eyeglasses normally consist of eyeglass
				lenses, complete eyeglasses, or contact lenses.
5. "Prescription" means an order, formula, or
				recipe issued in any form of oral, written, electronic or other means of
				transmission by a duly licensed practitioner authorized by the laws of
				Arkansas.
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-39 - EXEMPTIONS FROM TAX - CHARITIES AND CHURCHES

Current through Register Vol. 49, No. 6, June, 2024
A. The gross receipts or gross proceeds
				derived from the sale of tangible personal property or services by churches or
				charitable organizations are exempt from the tax except where such
				organizations may be engaged in business for profit. Additionally, sales made
				by charitable organizations that sell new tangible personal property and their
				sales compete with sales made by for-profit businesses are not exempt. (See
				GR-39(C).)
B. The gross receipts or
				gross proceeds derived from sales of tangible personal property or services to
				churches or charitable organizations are not exempt from tax unless the items
				purchased are for resale by the church or charitable organization. In order to
				claim the sale-for-resale exemption, a church or charitable organization must
				have either a resale certificate or a letter opinion issued by DFA certifying
				that it is a church or charitable organization and that it intends to resell
				the items purchased.
C. WHEN SALES
				BY CHARITABLE ORGANIZATIONS ARE NOT EXEMPT:
1.
				The exemption for charitable organizations shall not extend to sales of new
				tangible personal property by the organization if the sale competes with sales
				by for-profit businesses.
2. A sale
				by a charitable organization does not compete with a sale by a for-profit
				organization if:
a. The sales transaction is
				conducted by members of the charitable organization and not by any franchisee
				or licensee;
b. All of the proceeds
				derived from the transaction go to the charitable organization;
c. The transaction is not a continuing one
				and is held not more than three (3) times a year; and
d. The dominant motive of the majority of
				purchasers of the items sold is the making of a charitable contribution, with
				the purchase of the item being merely incidental and secondary to the dominant
				purpose of making a gift to the charity.
3. The limitations of this section do not
				apply to sales made by a nonprofit hospital, a cafeteria at a nonprofit
				hospital, or a gift shop at a nonprofit hospital, whether operated by the
				hospital, a hospital auxiliary, or other nonprofit organization; or to sales by
				gift shops operated by charitable organizations at for-profit
				hospitals.
4. The following
				activities shall not be deemed to compete with sales by for-profit
				organizations:
a. Sales of tangible personal
				property by charitable organizations at county fairs;
b. Sales at concession stands operated by a
				non-profit little league or soccer association or other similar athletic
				association;
5. The sale
				of fireworks by a non-profit charitable organization shall be deemed to compete
				with for-profit organizations.
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-40 - EXEMPTIONS FROM TAX - ADMISSION FEE TO RODEOS AND FAIRS - TICKETS FOR ADMISSION TO ATHLETIC EVENTS AND INTERSCHOLASTIC ACTIVITIES - COLLEGES AND UNIVERSITIES

Current through Register Vol. 49, No. 6, June, 2024
A. The gross
				receipts or gross proceeds derived from gate admission fees at state, district,
				county or township fairs are exempt from the tax. The gross receipts or gross
				proceeds derived from gate admission fees at any rodeo are exempt from the tax
				if, and only if, the gross receipts or gross proceeds derived from such fees
				are used exclusively for the improvement, maintenance and operation of such
				rodeo and if no part of the net earnings thereof inures to the benefit of any
				private stockholder or individual.
B. The gross receipts or gross proceeds
				derived from the sale of tickets for admission to athletic events and
				interscholastic activities at public and private elementary and secondary
				schools in this State are exempt from the tax.
C. The gross receipts or gross proceeds
				derived from the sale of tickets for admission to athletic events at public or
				private universities and colleges in Arkansas are exempt from the
				tax.
Ark. Code Ann. §§
											26-52-411;
					 26-52-412
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-41 - EXEMPTIONS FROM TAX - RAW FARM PRODUCTS GROWN IN ARKANSAS

Current through Register Vol. 49, No. 6, June, 2024
A. The gross
				receipts or gross proceeds derived from sales of raw products, including
				Christmas trees, produced or grown at a farm, orchard, or garden in Arkansas
				are exempt from tax if:
1. The sale of such
				products is made by the producer directly to the consumer; and
2. The sale is not from an established
				business located off the farm. Farmers' markets that operate from an
				established place off the farm or in an established manner off the farm are
				deemed to be established businesses. Products sold at farmers' markets off the
				farm are not eligible for the exemption.
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-42 - EXEMPTIONS FROM TAX - DAIRY, LIVESTOCK (INCLUDING DOMESTICATED FISH), AND POULTRY PRODUCTS

Current through Register Vol. 49, No. 6, June, 2024
A. The gross
				receipts or gross proceeds derived from the sale of baby chickens in Arkansas
				are exempt from the tax.
B. The
				gross receipts or gross proceeds derived from the sale of livestock including
				domesticated fish by producers at special livestock sales are exempt from the
				tax. The term "livestock" includes cattle, horses, mules, sheep, hogs, and any
				other animals kept for commercial use or profit.
C. The gross receipts or gross proceeds
				derived from the sale of dairy products by a dairy product producer who owns
				less than six (6) dairy cows are exempt from the tax if the dairy products are
				produced in Arkansas and if the dairy products are sold by the producer
				directly to the consumer and the sale is not from an established business
				located off the farm.
D. The gross
				receipts or gross proceeds derived from sale of poultry products are exempt
				from the tax if the poultry or poultry products are produced in Arkansas and
				are sold on the producer's farm and not from an established business.
Ark. Code Ann. §
											26-52-401(18)
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-43 - EXEMPTIONS FROM TAX - COTTON GIN BALING MATERIALS, AGRICULTURAL SEED, AND TOMATO TWINE

Current through Register Vol. 49, No. 6, June, 2024
A. The gross
				receipts or gross proceeds derived from the sale of bagging, packaging, and tie
				materials sold to, and used by, cotton gins in Arkansas for packaging and
				tying, or for packaging or tying baled cotton in Arkansas are exempt from the
				tax. The gross receipts or gross proceeds derived from the sale of twine which
				is used in production of tomato crops in Arkansas are exempt from the
				tax.
B. The gross receipts or gross
				proceeds derived from the sale of cotton, seed cotton, lint cotton, or baled
				cotton, whether the cotton is compressed or not, are exempt from this
				tax.
C. The gross receipts or gross
				proceeds derived from the sale of cotton seed in its original condition are
				exempt from the tax.
D. The gross
				receipts or gross proceeds derived from the sale of seed to be used in the
				commercial production of any agricultural product, or in the commercial
				production of any agricultural seed are exempt from the tax. Also, the gross
				receipts or gross proceeds derived from the sale of seedlings used in the
				commercial production of timber are exempt from tax. For purposes of this
				subsection the term "commercial production" means that the purchaser of the
				seed or seedling is engaged in the business of growing agricultural products,
				including the production of timber.
E. The term "agricultural" means operations
				engaged in for the production of food, fiber or timber, sod, or nurseryman
				products.
Ark. Code Ann. §
											26-52-408