Arkansas Administrative Code

26 CAR § 30-1136. Exemptions from tax — Manufacturers. (a) The gross receipts or gross proceeds derived from sales of tangible personal property consisting of machinery and equipment used directly in producing, manufacturing, fabricating, assembling, processing, finishing, and/or…

26 CAR § 30-1137. Exemptions from tax — Chemicals used in manufacturing. (a) Chemicals used in manufacturing may be exempt from gross receipts or use tax if the following occur: (1) The chemicals become a recognizable, integral part of the manufactured goods (see 26 CAR § 30-1134…

26 CAR § 30-1138. Exemptions from tax — Manufacturing exemption — Dies and molds. (a) The gross receipts derived from the sale of molds and dies are exempt if: (1) The molds or dies are used directly in manufacturing; and (2) The molds or dies determine the physical characteristi…

26 CAR § 30-1139. Exemptions from tax — Manufacturing exemption — Specific businesses — Printers. (a)(1) Machinery and equipment used directly by a manufacturer in the printing process and that otherwise satisfies the requirements of 26 CAR § 30-1136, is exempt from tax. (2) For …

26 CAR § 30-1140. Exemptions from tax — Manufacturing exemption — Specific businesses — Newspaper publishers. (a)(1) Machinery and equipment used directly in the manufacturing of a printed newspaper by newspaper publishers and printers will be exempt from the tax. (2) In all even…

26 CAR § 30-1141. Exemptions from tax — Manufacturing exemption — Specific businesses — Refining and extracting oil, brine, and natural gas — Services to oil, brine, and natural gas wells. (a) Refining — Exempt. The following items of tangible personal property are examples of ex…

26 CAR § 30-1142. [Reserved].

26 CAR § 30-1143. Exemptions from tax — Manufacturing exemption — Specific businesses — Mining and quarrying. (a) Machinery and equipment purchased and used by mining or quarrying operations are exempt from the tax if the requirements of 26 CAR § 30-1136 are satisfied. (b) The ex…

26 CAR § 30-1144. Exemptions from tax — Manufacturing exemptions — Specific businesses — Rice, soybean, and grain drying. (a) The following machinery and equipment purchased and used by rice driers, soybean driers, and other grain driers constitutes machinery and equipment used d…

26 CAR § 30-1145. Cotton ginners. (a) The following machinery and equipment purchased and used by cotton ginners constitutes machinery and equipment used directly in the ginning of cotton: (1) Suction systems, lint cleaners, dryers, gin stands, stick machines, feeders, and separa…

26 CAR § 30-1146. Exemptions from tax — Manufacturing exemption — Specific businesses — Poultry and livestock feed. (a) The following machinery and equipment purchased and used by poultry and livestock feed manufacturers constitutes machinery and equipment used directly in the ma…

26 CAR § 30-1147. Exemptions from tax — Manufacturing exemption — Specific businesses — Hatching of poultry. (a) The following machinery and equipment purchased and used by poultry hatching facilities constitutes machinery and equipment used directly in the hatching of poultry: (…

26 CAR § 30-1148. Exemptions from tax — Manufacturing exemption — Specific businesses — Egg processors and poultry processors. (a) Egg processors. The following machinery and equipment purchased and used by egg processors constitutes machinery and equipment used directly in proce…

26 CAR § 30-1149. Exemptions from tax — Manufacturing exemption — Specific businesses — Automobile parts rebuilders, tire retreaders. (a)(1) Machinery and equipment purchased and used by persons rebuilding or remanufacturing used parts for automobiles, trucks, and other mobile eq…

26 CAR § 30-1150. Exemptions from tax — Manufacturing exemption — Pollution control machinery. (a) The gross receipts or gross proceeds derived from the sale of pollution control machinery and equipment are exempt from the tax if the machinery and equipment is: (1) Utilized, eith…

26 CAR § 30-1151. Exemptions from tax — Manufacturing exemption — Specific businesses — Concrete mixers and batch plants, sawmills and lumber mills. (a) Concrete mixers and batch plants. (1) Concrete mix trucks and ready-mix concrete batch plants are not machinery and equipment u…

26 CAR § 30-1152. [Reserved].

26 CAR § 30-1153. Exemptions from tax — Textbooks and other instructional materials. (a) The gross receipts or gross proceeds derived from the sale of textbooks, library books, and other instructional materials are exempt from tax if purchased by: (1) An Arkansas school district …

26 CAR § 30-1201. Sales to credit unions. (a)(1) Sales of tangible personal property and taxable services to state chartered credit unions are subject to the gross receipts tax. (2) Sellers are required to collect and remit the tax on the gross receipts or gross proceeds derived …

26 CAR § 30-1202. Tax collected by seller — Prohibited practice — Tax due on gross receipts — Local taxes. (a) The gross receipts tax must be collected by the seller of tangible personal property or taxable services in all cases except those cases where the tax is to be paid dire…

26 CAR § 30-1203. Sellers required to obtain a permit. (a)(1) Every person liable to remit the tax or make a return or report for the purpose of claiming any exemption from the payment of the tax levied by Arkansas Code § 26-52-101 et seq., shall make application for a permit on …

26 CAR § 30-1204. Cancellation of permit — Automatic expiration of permit. (a) Failure to comply with any requirement of the Arkansas Gross Receipts Act of 1941, Arkansas Code § 26-52-101 et seq., or with any provision of this part shall constitute sufficient grounds for cancella…

26 CAR § 30-1205. [Reserved].

26 CAR § 30-1206. Legal opinions issued by the Department of Finance and Administration. (a)(1) The propriety of the taxation or exemption of a sale may be substantiated by having a legal opinion rendered by the Department of Finance and Administration that states that the sale o…

26 CAR § 30-1207. Determination of tax due — Sourcing transactions. (a) Sales transactions shall be sourced in accordance with this section unless otherwise provided. (b) Applicability. (1) Products. The sourcing provisions of this section apply regardless of the characterization…

26 CAR § 30-1208. Reports, returns, and remittances. (a) Monthly report. (1) The tax shall be due and payable on the first day of every month by any person liable for the payment of any tax due. (2)(A) It is the duty of all taxpayers (sellers) to deliver to the Secretary of the D…

26 CAR § 30-1209. Cash basis returns. (a)(1) Any taxpayer who does business wholly or partly on a credit basis may apply to the Secretary of the Department of Finance and Administration for permission to prepare returns on the basis of cash actually received. (2) If the secretary…

26 CAR § 30-1210. Persons liable for tax and exemptions. (a) The tax must be collected, reported, and remitted by: (1) The seller of tangible personal property; (2) The seller or collector of admissions to places of amusement, recreational, or athletic events; (3) The seller of p…

26 CAR § 30-1211. Record keeping and record retention. (a) Purpose. (1) The purpose of this section is to define the requirements imposed on taxpayers for the maintenance and retention of books, records, and other sources of information under the Arkansas Tax Procedure Act, Arkan…

26 CAR § 30-1212. Assessments. (a) If, upon audit or examination, the Secretary of the Department of Finance and Administration or his or her duly authorized agent determines there is additional tax due, the secretary shall: (1) Prepare a schedule reflecting the amount of additio…

26 CAR § 30-1213. Refunds. (a) Refunds of tax erroneously paid. (1) Refunds allowed. (A) Any taxpayer who has paid tax in excess of the amount lawfully due is entitled to a refund of the tax erroneously paid. (B)(i) The claim for refund must meet the requirements of the Arkansas …

26 CAR § 30-1214. Administrative and judicial remedies. (a) Protest. (1) Protest of assessment. (A) If a taxpayer objects to a proposed assessment of tax, the taxpayer must file his or her protest in writing within sixty (60) days of receipt of the notice of proposed assessment s…

26 CAR § 30-1215. Interest accrued on underpayments of tax — Rate. (a) Interest on underpayments of tax shall be due and payable at the rate of ten percent (10%) per annum from the date such tax was due to be paid until the date of payment. (b) Sales and use tax is due to be paid…

26 CAR § 30-1216. Overpayments and refunds — Interest on overpayments and refunds. (a)(1) After an examination of a return, if it shall appear that a taxpayer has overpaid the amount of tax required to be paid, then the excess so paid with interest at the rate specified below may…

26 CAR § 30-1217. Discount for prompt payment. (a) Discount for prompt payment. (1) If the tax is remitted to the Secretary of the Department of Finance and Administration on or before the due date required by 26 CAR § 30-1208, the taxpayer is entitled to deduct two percent (2%) …

26 CAR § 30-1218. Penalties. (a) Negligence penalty. (1) If any part of a deficiency in tax is determined to be due to negligence or intentional disregard of this part or state law, then a penalty of ten percent (10%) of the deficiency shall be added. (2) If a fraud penalty, a fa…

26 CAR § 30-1219. Bad checks and acceptance of personal checks. (a)(1) If any person makes payment to the Department of Finance and Administration by means of a check, draft, money order, or electronic funds transfer drawn on any bank, person, firm, or corporation and the check, …

26 CAR § 30-1220. Direct payment to the state. (a)(1) The Commissioner of Revenue may permit a consumer to accrue and remit the tax directly to the commissioner instead of having such tax collected and paid by the seller. (2) In order to obtain a direct payment number, the consum…

26 CAR § 30-1221. Transient business required to post bond. (a) Every person desiring to engage in business within this state and who does not maintain a permanent business within this state shall be required to obtain a retailer’s permit and post a bond sufficient to cover the a…

26 CAR § 30-1222. Business closure. (a) Business closure authority. The Department of Finance and Administration has the authority to close any business that fails to pay the gross receipts tax due for three (3) months in a twenty-four-month period and does not, within the time a…

26 CAR § 30-1223. Wholesalers to furnish list of retailers. It shall be the duty of all persons, firms, and corporations and all business establishments of every kind engaged in the wholesale business of selling merchandise in this state to furnish in written form upon request of…

26 CAR § 30-1224. Local gross receipts taxes. (a) The collection and administration of a gross receipts tax collected for any town, city, or county by the Commissioner of Revenue shall be collected and administered in accordance with this part. (b) Maximum tax limitation. (1)(A) …

26 CAR § 30-1225. Rebates for qualifying purchases. (a) Definitions. As used in this section: (1) “Qualifying purchase” means a purchase of tangible personal property or a taxable service: (A) For which the purchaser may take a business expense deduction pursuant to 26 U.S.C. § 1…

26 CAR § 30-1226. Bundled transactions. (a) Except as otherwise provided by this section, sales tax must be collected on the sales price of a bundled transaction if any product included in the bundled transaction would be taxable if sold separately. (b) Products. (1) For purposes…

26 CAR § 30-1301. Purpose. (a) This subpart is promulgated to implement and clarify the Arkansas Compensating Tax Act of 1949, Arkansas Code § 26-53-101 et seq. (b) All persons affected by the Arkansas Compensating Tax Act of 1949 are advised to first read the Arkansas Gross Rece…

26 CAR § 30-1302. Definitions. For the purposes of this part, unless otherwise required by their context, the following definitions apply: (1)(A) “Commissioner” means and refers to the Commissioner of Revenue of the State of Arkansas or any of his or her duly authorized agents. (…

26 CAR § 30-1303. Amount and nature of tax. (a)(1) The tax levied by the Arkansas Compensating Tax Act of 1949, Arkansas Code § 26-53-101 et seq., is six percent (6%) of the sales price of tangible personal property or taxable services purchased for storage, use, consumption, or …

26 CAR § 30-1304. Collection of tax. (a)(1) Every vendor making a sale of tangible personal property or taxable services directly or indirectly for the purpose of storage, use, consumption, or distribution in this state shall collect the tax from the purchaser and give a receipt …

26 CAR § 30-1305. Voluntary seller registration. (a) A vendor that has no legal requirement to register in Arkansas may register electronically through an online registration system at www.streamlinedsalestax.org. (b) A vendor that registers electronically is not required to prov…

26 CAR § 30-1306. Return and payment of tax. (a)(1) Every vendor selling tangible personal property or taxable services for storage, use, consumption, or distribution in this state shall on or before the twentieth day of each month file with the Commissioner of Revenue a return f…