Arkansas Administrative Code

26 CAR § 9-109. Effect on hard-copy recordkeeping requirements. (a)(1) Except as otherwise provided in this section, the provisions of this part do not relieve taxpayers of the responsibility to retain hard-copy records that are created or received in the ordinary course of busin…

26 CAR § 9-110. Records retention — Time period. All records required to be retained under this part shall be preserved for six (6) years pursuant to Arkansas Code § 26-18-506(b) unless the Secretary of the Department of Finance and Administration has provided in writing that the…

26 CAR § 30-1001. Persons required to collect and remit tax — Pawnbrokers and sellers of used tangible personal property. (a) Pawnbrokers and sellers of used tangible personal property are sellers of taxable goods and must obtain a permit. (b) All sales made by pawnbrokers or oth…

26 CAR § 30-1002. Leases and rentals. (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 o…

26 CAR § 30-1003. Persons required to collect and remit tax — Specific businesses — Contractors. (a) Definitions. As used in this section: (1)(A) “Consumer” or “user” means the person to whom the taxable sale is made or to whom the taxable services are furnished. (B) All contract…

26 CAR § 30-1004. Rates for property purchased for use in the performance of a construction contract — Increase in sales and use tax rates. (a)(1) Materials purchased for use in construction contracts that become recognizable components of the completed project are subject to sta…

26 CAR § 30-1005. Persons required to collect and remit tax — Specific businesses — Funeral homes and funeral directors. (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 prop…

26 CAR § 30-1006. Radio, video, and television tapes and films. (a) 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. (b) Producers must collect and remit…

26 CAR § 30-1007. Special rules for fundraising and other infrequent sales. (a) PTAs/PTOs or other school organizations. (1) 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 sa…

26 CAR § 30-1008. Persons required to collect and remit tax — Specific businesses — Sellers of computer hardware and computer software. (a)(1) Sales tax is levied on the gross receipts or gross proceeds received from sales of: (A) Computer hardware; (B) Computer software; and (C)…

26 CAR § 30-1009. Persons required to collect and remit tax — Specific businesses — Sellers of beer, wine, liquor, and other intoxicating beverages. (a)(1) All sellers of beer, wine, liquor, and other intoxicating beverages must collect and remit the tax upon the gross receipts o…

26 CAR § 30-101. Purpose. (a) This part is promulgated to implement and clarify Title 26, Chapter 52 of the Arkansas Code. (b) All persons affected by or relying upon this part are advised to read it in its entirety because the meaning of the provisions of one (1) rule may depend…

26 CAR § 30-1010. Persons required to collect and remit tax — Specific businesses — Wholesalers and jobbers. Wholesalers and jobbers must collect and remit the tax on the gross receipts or gross proceeds derived from all: (1) Sales to consumers or sales to retailers who do not ha…

26 CAR § 30-102. Definitions. For purposes of this part, unless otherwise required by their context, the following definitions apply: (1)(A) “Bundled transaction” means a retail sale of two (2) or more products, except real property and services to real property, in which the pro…

26 CAR § 30-103. Amount and nature of tax. (a) Gross receipts tax. (1) The state gross receipts tax rate is six percent (6%) of the gross receipts or gross proceeds derived from all sales within Arkansas of tangible personal property, certain services, and admission fees upon whi…

26 CAR § 30-1101. Exemptions from tax — Sales of items purchased with food stamps. (a)(1) 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…

26 CAR § 30-1102. Exemptions from tax — Fuel oil, motor fuel, motor oil, lubricants, crude oil, and automobile parts. (a)(1) 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 …

26 CAR § 30-1103. Exemptions from tax — Certain labor services exempt from tax. (a) Any person who performs taxable labor for any other person who holds a retail permit need not collect and remit tax upon labor services performed for that person holding the retail permit if, and …

26 CAR § 30-1104. Exemptions from tax — Repair of commercial jet aircraft. (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 j…

26 CAR § 30-1105. Exemptions from tax — Specific organizations exempt when they purchase taxable goods or services. (a)(1) Certain specified organizations or groups have been exempted from the tax when they purchase tangible personal property or taxable services. (2) Sellers of t…

26 CAR § 30-1106. Exemptions from tax — Volunteer fire departments. (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 lo…

26 CAR § 30-1107. Exemptions from tax — Fuel for manufacturing. (a) Steel mills. (1) 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. (2) “Qualified …

26 CAR § 30-1108. Exemptions from tax — Foodstuffs sold to governmental agencies and nonprofit food distribution agencies. (a)(1) The gross receipts or gross proceeds derived from the sale of food or food ingredients or prepared food to governmental agencies for free distribution…

26 CAR § 30-1109. Exemptions from tax — Motor vehicles purchased by specific individuals and organizations. (a)(1) 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 w…

26 CAR § 30-1110. Exemptions from tax — Schools. (a)(1) There is no general exemption that applies to all sales to school districts or public schools. (2) There is no general exemption that applies to sales by school districts or public schools. (3) However, there are certain spe…

26 CAR § 30-1111. Exemptions from tax — Persons eligible for Medicare and Medicaid. (a)(1) 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 e…

26 CAR § 30-1112. Exemptions from tax — Hospitals and sanitariums. (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 nonprofit purposes a…

26 CAR § 30-1113. Exemptions from tax — Prescription drugs and oxygen. (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 …

26 CAR § 30-1114. Exemptions from tax — Insulin and test strips. 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.

26 CAR § 30-1115. Exemptions from tax — Durable medical equipment, mobility-enhancing equipment, prosthetic devices, and disposable medical supplies. (a) The gross receipts or gross proceeds derived from the rental, sale, or repair of the following items are exempt from tax if pr…

26 CAR § 30-1116. Sales by ophthalmologists, optometrists, opticians, and eyewear retailers. (a) Definitions. As used in this section: (1)(A) “Corrective eyeglasses” means eyewear that is designed to improve or protect the patient’s vision. (B) Corrective eyeglasses normally cons…

26 CAR § 30-1117. Exemptions from tax — Charities and churches. (a)(1) 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 engag…

26 CAR § 30-1118. Exemptions from tax — Admission fees to rodeos and fairs — Tickets for admission to athletic events and interscholastic activities — Colleges and universities. (a)(1) The gross receipts or gross proceeds derived from gate admission fees at state, district, count…

26 CAR § 30-1119. Exemptions from tax — Raw farm products grown in Arkansas. (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…

26 CAR § 30-1120. Exemptions from tax — Dairy, livestock (including domesticated fish), and poultry products. (a) The gross receipts or gross proceeds derived from the sale of baby chickens in Arkansas are exempt from the tax. (b)(1) The gross receipts or gross proceeds derived f…

26 CAR § 30-1121. Exemptions from tax — Cotton gin baling materials, agricultural seed, and tomato twine. (a)(1) 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…

26 CAR § 30-1122. [Reserved].

26 CAR § 30-1123. Exemptions from tax — Certain products used for livestock and poultry — Special rules for claiming exemptions. (a)(1) The gross receipts or gross proceeds derived from sales of agricultural fertilizer, agricultural limestone, and agricultural chemicals are exemp…

26 CAR § 30-1124. Nontaxable advertising services. (a) Definitions. As used in this section: (1) “Advertising agency” means a business that provides comprehensive, professional advertising services, including, but not limited to: (A) Artwork; (B) Concepting; (C) Designing; and (D…

26 CAR § 30-1125. Exemptions from tax — Sales to the United States Government. (a) The gross receipts or gross proceeds derived from sales to the United States Government are exempt from the tax. (b) Contractors purchasing tangible personal property or taxable services pursuant t…

26 CAR § 30-1126. Exemptions from tax — Federal credit card purchases. (a)(1) Sales tax is not due on credit card purchases that are direct-billed to and paid for by the federal government. (2) Sales tax is due on credit card transactions where the purchases are billed to and pai…

26 CAR § 30-1127. Exemptions from tax — Newspapers, publications, and billboards. (a) Definitions. As used in this section: (1) “Advertising space” means: (A) Space located within the body of a newspaper or publication containing advertisements that are printed concurrently with …

26 CAR § 30-1128. Exemptions from tax — Isolated sales. (a) The gross receipts or gross proceeds derived from isolated sales not made by an established business or in an established manner are exempt from the tax. (b) “Isolated sale” means the one-time sale of an item or group of…

26 CAR § 30-1129. Special events — Exception to isolated sales exemption. (a)(1) The isolated sale exemption does not apply to items sold at special events. (2) Promoters or organizers of special events must register with the Department of Finance and Administration and obtain ei…

26 CAR § 30-1130. Exemptions from tax — Secondhand and used tangible personal property. (a) Gross receipts or gross proceeds derived from the sale of secondhand and used tangible personal property will be exempt only if both the following conditions listed below are met: (1)(A) U…

26 CAR § 30-1131. Exemptions from tax — Farm machinery and equipment, timber harvesting equipment. (a) The gross receipts or gross proceeds derived from the sale of new and used farm equipment and machinery is exempt from gross receipts tax. (b) Definitions. As used in this secti…

26 CAR § 30-1132. Exemptions from tax — Livestock reproduction equipment. (a) The gross receipts or gross proceeds derived from the sale of livestock reproduction equipment or substances are exempt from gross receipts tax. (b) Definitions. As used in this section: (1) “Livestock”…

26 CAR § 30-1133. Exemptions from tax — Vessels, barges, and towboats of at least 50 tons load displacement — Railroad cars, parts, and equipment. (a) The gross receipts or gross proceeds derived from the sale of vessels, barges, and towboats of at least fifty (50) tons load disp…

26 CAR § 30-1134. Exemptions from tax — Sales for resale. (a)(1) The gross receipts or gross proceeds derived from sales for resale to persons regularly engaged in the business of reselling the articles or services purchased are exempt from tax provided that such sales are made t…

26 CAR § 30-1135. Sales and use tax incentives, credits, and refunds. (a) Arkansas Tourism Development Act, Arkansas Code § 15-11-501 et seq. (1)(A) The Arkansas Tourism Development Act program provides financial incentives to induce the construction or expansion of tourism attra…