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-37 - EXEMPTIONS FROM TAX - HOSPITALS AND SANITARIUMS

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 to any state
				owned and tax supported hospital or sanitarium operated for charitable and
				non-profit purposes are exempt from the tax.
B. The gross receipts or gross proceeds
				derived from the sale of tangible personal property or services to any
				non-profit organization whose sole purpose is to provide temporary housing to
				the family members of patients in a hospital or sanitarium are exempt from the
				tax except for the sale of materials used in the original construction,
				extension or repair of the temporary housing.
C. The gross receipts or gross proceeds
				derived from the sale of tangible personal property or services to any other
				hospital or sanitarium operated for charitable and non-profit purposes are
				exempt from the tax except the sales of materials used in the original
				construction, extension or repair of such a hospital or sanitarium shall not be
				exempt from the tax.
D. The gross
				receipts or gross proceeds derived from the sale of tangible personal property
				or services to a hospital or sanitarium operated for profit are
				taxable.
E. DEFINITIONS.
1. "Non-profit" means that no part of the
				income received by the hospital or sanitarium from any sources inures (either
				directly or indirectly) to the benefit of any individual, corporation organized
				for profit, trust organized for profit, or partnership organized for
				profit.
2. "Repair" means
				substantial modifications or substantial work upon the hospital or sanitarium
				building itself which are necessary because of some extraordinary occurrence
				such as fire, earthquake, flood, explosion, or structural failure. Repair does
				not include the replacement of items or work performed on the hospital or
				sanitarium building as a result of ordinary wear and tear, depreciation,
				maintenance, or vandalism. Repair does not include remodeling or refurbishing
				of any part of the existing hospital or sanitarium facility not necessitated by
				damage.
3. "Hospital" means an
				institution which provides medical and surgical care for the general public.
				Two basic factors determine whether an institution is a hospital:
a. The institution provides beds for the
				overnight stay of patients (an institution which provides "out-patient"
				services only is not a hospital); and
b. The institution provides a broad range of
				medical and surgical services.
4. "Sanitarium" means an institution which
				provides long-term in-patient medical or mental treatment for the physically or
				mentally ill, including a charitable, nonprofit nursing home or a charitable,
				non-profit hospice.
5.
				"State-owned, tax-supported" means owned by the State of Arkansas and supported
				by public funds.
6. "Charitable
				organization" means an organization whose purpose is benevolent, philanthropic,
				patriotic or eleemosynary and whose function if performed, and not performed by
				a private party, would have to be performed at public expense.
7. "Extension" means the exterior expansion,
				vertically or laterally, of the existing facility such that additional usable
				space is added to the total usable space of the hospital or sanitarium. The
				addition or expansion of parking facilities is also an "expansion".