Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Rule 006.05.98-004 - Emergency Regulation: Amendment to Gross Receipts Regulation GR-43 and GR-45

Current through Register Vol. 49, No. 6, June, 2024
This amendment to Gross Receipts Tax Regulation GR-43 is
				adopted as an emergency regulation under the provisions of Ark. Code Ann. §
								25-15-204,
				Ark. Code Ann. §
								26-18-101 et
				seq. and Ark. Code Ann. §
								26-52-101 et
				seq. This amendment is necessary to properly administer Ark. Code Ann. §
								26-52-101
				et.seq. Gross Receipts Regulation GR-43 is amended to read as follows:
"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,
			 timber, sod or nurseryman products."
EMERGENCY AMENDMENT TO GROSS RECEIPTS REGULATION GR-45
This amendment to Gross Receipts Tax Regulation GR-45 is
				adopted as an emergency regulation under the provisions of Ark. Code Ann. §
								25-15-204,
				Ark. Code Ann. §
								26-18-101 et
				seq. and Ark. Code Ann §
								26-52-101 et
				seq. This amendment is necessary to properly administer Ark. Code Ann. §
								26-52-101 et
				seq. Gross Receipts Regulation GR-45 is amended to read as follows:
"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. For purposes of this
			 regulation, the following definitions shall apply:
1. The term 'feedstuffs' shall 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. The term 'livestock' includes cattle,
			 horses, mules, sheep, hogs, and any other animals kept for commercial use or
			 profit.
3. The term 'agricultural'
			 means operations engaged in for the production of food, fiber, timber, sod or
			 nurseryman products."