Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Rule 006.05.00-003 - Gross Receipts Regulation GR-48: Exemptions From Tax - Newspapers, Publication and Billboards

Current through Register Vol. 49, No. 6, June, 2024
AMENDMENT TO ARKANSAS GROSS RECEIPTS REGULATION
				GR-48
These amendments to the Arkansas Gross Receipts Regulations are
				necessary in order to properly implement and enforce Ark. Code Ann. §
								26-52-401
				and are promulgated pursuant to the authority vested in the Director of the
				Department of Finance and Administration and the Commissioner of Revenue by Act
				386 of 1941 and Act 401 of 1979.
Gross Receipts Regulation GR-48 is amended to read as
				follows:
" A. For purposes of this
			 Section, the following definitions are applicable;
1. The term "newspaper" means 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.
2. The term "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.
			 The term "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. The
			 term "billboard advertising services" means 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. The term "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. The term
			 "regular subscription" means the purchase by advance payment of a specified
			 number (2 or more) of issues of a publication over a certain period of time,
			 and delivered to the subscriber by mail or otherwise.
B. The gross receipts or gross proceeds
			 derived from the sale of newspapers are exempt from the tax.
C. The gross receipts or gross proceeds
			 derived from the sale or rental of advertising space in newspapers and
			 publications are exempt from the tax. Advertising supplements are not exempt
			 from the tax. The printer, whether a newspaper publisher or job printer, must
			 collect the tax on the gross receipts or gross proceeds derived from the sale
			 of the advertising supplements to the advertiser, even though the advertising
			 supplement may be distributed by insertion in a newspaper for the convenience
			 of the advertiser.
D. The gross
			 receipts or gross proceeds derived from the sale of advertising space in
			 advertising supplements or other publications distributed free of charge are
			 exempt from tax. The printer, whether a newspaper publisher or job printer,
			 must collect tax on the gross receipts or gross proceeds derived from the sale
			 of the advertising supplements to the distributor. If the printer is also the
			 distributor, the printer should pay tax on the retail price which the printer
			 would have charged to a customer who purchased the advertising supplements or
			 publications from the printer in an arms length transaction.
E. The gross receipts or gross proceeds
			 derived from the sale of billboard advertising services are exempt from the
			 tax.
F. The gross receipts or gross
			 proceeds derived from the sale of any publication through regular subscription
			 is exempt.
G. The gross receipts or
			 gross proceeds derived from the sale of any non-subscription magazines, or
			 publications other than newspapers are subject to the tax.
H. The gross receipts or gross proceeds
			 derived from the sale of machinery and equipment to newspaper publishers are
			 exempt from the tax if they satisfy the requirements set forth in
			 GR-55."