Arkansas Administrative Code

26 CAR § 31-102. Definitions. As used in this part: (1) "Alcoholic beverage" means a beverage that: (A) Is suitable for human consumption; and (B) Contains five-tenths of one percent (0.5%) or more of alcohol by volume; (2)(A) "Dietary supplement" means any product, other than to…

26 CAR § 31-103. Prepared food. (a)(1) Prepared food is meant to encompass items intended for, and which are generally ready for, immediate consumption at the time of sale either on or off the premises of the seller. (2) An item will be considered prepared food and taxed at the f…

26 CAR § 31-104. Exclusions from prepared food. (a) Prepared food does not include food that meets the criteria discussed below in subsections (b) and (c) of this section. (b) Prepared food does not include food: (1) That contains raw eggs, fish, meat, or poultry products that re…

26 CAR § 31-105. Caterers. Individuals or businesses that provide catered foods or beverages are deemed to be selling prepared food, which is subject to the full state sales and use tax rate plus all applicable local taxes.

26 CAR § 31-106. Prepared-food sales percentage. (a)(1) The prepared-food sales percentage is used to determine when making utensils available to customers at a self-service station or otherwise constitutes selling food with a utensil provided by the seller, which is taxable at t…

26 CAR § 32-101. General information. (a) Beginning July 1, 2007, sales of natural gas and electricity to a manufacturer for use directly in the manufacturing process will be taxed as follows: (1) From July 1, 2007, through June 30, 2008, the state tax rate will be four and five-…

26 CAR § 32-102. Definitions. For purposes of this part, the following definitions apply: (1) "DFA" means the Sales and Use Tax Section of the Revenue Division of the Department of Finance and Administration; (2) "Manufacturer" means a person or entity classified within sectors 3…

26 CAR § 32-103. Registration and certification. (a)(1) A manufacturer must: (A) Register with the Sales and Use Tax Section to purchase natural gas or electricity at the reduced rate using Form ET185A; and (B)(i) Provide information to the Sales and Use Tax Section at that time …

26 CAR § 32-104. Recertification. (a) Recertification is required at each location: (1)(A) When there is a substantial change in the manufacturer's operation that would affect energy usage at any, or all, meters. (B)(i) A substantial change is a change resulting in greater than a…

26 CAR § 32-105. Calculating and remitting tax. (a) The tax on all sales of natural gas or electricity to manufacturers shall be calculated and remitted as follows: (1) Apply the four and five-tenths percent (4.5%) (four percent (4%) after July 1, 2008) state tax rate to: (A) Sal…

26 CAR § 32-106. Refund process. (a)(1)(A) Manufacturers who pay tax at the full state rate on natural gas or electricity used directly in manufacturing may request a refund of the overpayment directly from the Sales and Use Tax Section (Form ET185F). (B) The refund cannot be obt…

26 CAR § 32-107. Existing exemptions. All existing statutory exemptions from sales and use tax for natural gas or electricity used in manufacturing or other purposes continue to apply.

26 CAR § 33-101. Definitions. As used in this part: (1) "Drug" means a compound, substance, or preparation, and any component of a compound, substance, or preparation, other than "food and food ingredients", "dietary supplements", or "alcoholic beverages" that is the following: (…

26 CAR § 33-102. Sales by veterinarians. (a) Tangible personal property used or consumed by the veterinarian. (1) Veterinarians are deemed to be the consumers or users of tangible personal property that is used or consumed by them in the nontaxable practice of veterinary medicine…

26 CAR § 33-103. Purchases by veterinarians. (a) Permitted business. (1)(A)(i) A veterinarian holding a sales tax permit may purchase tangible personal property exempt from sales or use tax as a sale for resale. (ii) See Arkansas Gross Receipts Tax Rule, 26 CAR § 30-. (B) As tang…

26 CAR § 33-104. Commercial production of livestock and poultry. (a) Arkansas law provides a limited exemption for agricultural chemicals such as vaccines, medications, and medicinal preparations used in the commercial production of livestock and poultry. (b)(1) Such vaccines, me…

26 CAR § 34-101. Definitions. The following words and phrases, when used in this part, shall have the following meanings: (1)(A) "Clothing" means an item of human wearing apparel suitable for general use for which the gross receipts or gross proceeds paid for the item of clothing…

26 CAR § 34-102. General provisions. The gross receipts derived from the sale of the following items shall be exempt from state and local Arkansas sales and use tax from 12:01 a.m. on the first Saturday in August to 11:59 p.m. the following Sunday each year: (1) Clothing; (2) Clo…

26 CAR § 34-103. Procedural provisions. For purposes of administering the Arkansas sales tax holiday, the following procedures will apply: (1) Layaway sales. A sale of eligible property under a layaway sale qualifies for exemption if: (A) Final payment on a layaway order is made …

26 CAR § 34-104. Taxpayer assistance. Information regarding the administration of the sales tax holiday may be obtained from the Sales and Use Tax Section of the Department of Finance and Administration, P.O. Box 1272, Room 1330, Joel Y. Ledbetter Building, Little Rock, Arkansas …

26 CAR § 34-105. Examination of records. The Department of Finance and Administration is authorized under Arkansas Code § 26-18-305 of the Arkansas Tax Procedure Act to audit and examine taxpayer books and records to verify compliance with the provisions of Acts 2011, No. 757.…

26 CAR § 35-101. Definitions. As used in this part: (1) "Permitted vending device operator" or "PVDO" means any person that: (A) Sells tangible personal property through vending devices; (B) Elects to retain or obtain an Arkansas retail sales tax permit; and (C) Elects to pay the…

26 CAR § 35-102. Other vending device operators. (a)(1) A vending device operator that does not meet the requirements of a permitted vending device operator may not purchase vending device goods exempt from sales and use tax as a sale for resale. (2) Purchases of these goods from…

26 CAR § 35-103. Permitted vending device operators — Nonmanufacturing. (a) A permitted vending device operator (PVDO) that does not manufacture vending device goods may choose to pay the five and five-tenths percent (5.5%) vending goods wholesale tax ("the tax") on the purchase …

26 CAR § 35-104. Permitted vending device operators — Manufacturers. (a) A PVDO that manufactures some or all of the goods placed in vending devices for sale shall calculate the tax based on the price that it would sell the manufactured goods to another vending device operator ("…

26 CAR § 35-105. Identifying label. (a)(1) Every vending device operator shall affix to each vending device operated by it a label, decal, tag, sticker, or other object which contains the name and unique identification number of the operator. (2) The Sales and Use Tax Section of …

26 CAR § 35-106. Reporting. (a) The tax must be reported each month on the Arkansas Sales and Use Tax Report. (b) The report is due on the twentieth of the month following the month in which taxable purchases or withdrawals occur. (c) Failure to timely report or pay the tax will …

26 CAR § 35-107. Record keeping. (a) Nonmanufacturing PVDO. (1) Nonmanufacturing PVDOs must maintain all invoices reflecting the purchase of vending device goods. (2) PVDOs opting to pay tax on the basis of withdrawal from inventory must maintain accurate records that reflect eac…

26 CAR § 37-101. Definitions. As used in this part: (1) "Commercial poultry water sales tax exemption certificate" or "exemption certificate" means the certificate provided by the purchaser of water for exclusive use in the operation of a poultry farm attesting to the purchaser's…

26 CAR § 37-102. Exemption from tax. (a) The sale of water for exclusive use in the operation of a poultry farm is exempt from the gross receipts tax levied by the Arkansas Gross Receipts Act of 1941, Arkansas Code § 26-52-101 et seq., and the compensating use tax levied by the A…

26 CAR § 37-103. Water provider requirements. (a) At or before the installation of the separate meter to comply with 26 CAR § 37-102(b), the water utility or provider must obtain a commercial poultry water sales tax exemption certificate from the purchaser certifying that the pou…

26 CAR § 60-101. Definitions. As used in this part: (1) “Electronic filer” means a firm, organization, or individual that participates in the electronic filing program; (2)(A) “Electronic return originator” (ERO) means a firm, organization, or individual that deals directly with …

26 CAR § 60-102. Electronic filing — Providing taxpayer with return. (a) After the effective date of this part, preparers/transmitters of an electronic filing must provide the taxpayer a copy of the return and the AR8453. (b)(1) Taxpayers who choose to file their returns electron…

26 CAR § 61-101. Definitions. As used in this part: (1) “Annual wage forms” means original forms W-2 and 1099 submitted by the taxpayer to the ERO, which are used to compute their individual income tax returns; (2) “AR8453” means a paper document used to satisfy signature require…

26 CAR § 61-102. General procedures for Form AR8453. (a) The taxpayer and ERO are required to verify that the taxpayer's name, address, Social Security number, and tax return information in the electronic transmission is identical to the information on the form AR8453 before the …

26 CAR § 61-103. Retention of Form AR8453. (a)(1) EROs are responsible for retaining the original AR8453 form or forms, the state copy of the original annual wage forms submitted by the taxpayer, and any other nonelectronic supporting forms or schedules at their place of business…

26 CAR § 61-104. Cessation of business by ERO. (a) EROs that cease doing business must notify the E-File Branch within thirty (30) days of the date that they cease doing business. (b) EROs that cease doing business will be required to forward all retained AR8453 documents to the …

26 CAR § 61-105. Procedure for Form AR8453OL. (a)(1) Taxpayers who prepare their own returns and file their State of Arkansas tax returns electronically are required to: (A) Complete and sign form AR8453OL and attach annual wage forms along with any other supporting forms and sch…

26 CAR § 61-106. Date of implementation. This part will apply to all electronically filed individual income tax returns for the tax year 1999 and later.

26 CAR § 62-101. Purpose. This part has been promulgated to implement and facilitate the process by which service providers remit withholding taxes to the Department of Finance and Administration by electronic funds transfer.

26 CAR § 62-102. Definitions. As used in this part: (1) "Client" means an employer who uses a service provider to report and remit Arkansas withholding tax on behalf of the employer; (2) "Department" means the Revenue Division of the Department of Finance and Administration; (3)(…

26 CAR § 62-103. Application. (a)(1) Acts 1999, No. 1132, applies only to those service providers that serve one hundred (100) or more taxpayers. (2) Service providers that serve ninety-nine (99) or fewer taxpayers are not required to remit Arkansas withholding tax via EFT. (b)(1…

26 CAR § 62-104. EFT deposit requirements. (a) EFT by automated clearinghouse credit. The following conditions must be met on or before the due date for the withholding tax payment: (1)(A) The service provider initiates a successful prenote or test transaction containing necessar…

26 CAR § 62-105. Registration of participating employers. (a)(1) All taxpayers (i.e., employers) that use a service provider to report and remit Arkansas withholding tax must be registered with the Revenue Division of the Department of Finance and Administration to withhold Arkan…

26 CAR § 62-106. Questions. Questions regarding any of the requirements imposed by this part should be directed to: EFT Group Arkansas Department of Finance and Administration Revenue Division Ledbetter Building 7th & Wolfe Streets P. O. Box 3566 Little Rock, AR 72203 (501) 682-7…

26 CAR § 63-101. General provisions. Except as provided in 26 CAR § 63-105, any pass-through entity that makes a distribution to a nonresident member is required to deduct and withhold Arkansas income tax from distributions of taxable income being made with respect to Arkansas so…

26 CAR § 63-102. Definitions. The following words and terms, when used in this part, shall have the following meanings: (1) "Department" means the Department of Finance and Administration; (2)(A) "Distributed" or "distribution" means a nonresident member's distributive share of a…