Charitable organizations

Ark. Code Ann. § 26-52-430 — under Gross Receipts Tax.

Ark. Code Ann. § 26-52-430

(a) The exemptions stated in this subchapter for a charitable organization shall not extend to sales of new tangible personal property, specified digital products, or a digital code by the charitable organization if the sales compete with sales by for-profit businesses.

(b) A sale by a charitable organization does not compete with a sale by a for-profit business if:(1) The sales transaction is conducted by a member of the charitable organization and not by a franchisee or licensee;(2) All the proceeds derived from the sales transaction go to the charitable organization; and(3) The sales transaction is not:(A) A continuing one; or(B) Held more than ten (10) times a year.

(1) The sales transaction is conducted by a member of the charitable organization and not by a franchisee or licensee;

(2) All the proceeds derived from the sales transaction go to the charitable organization; and

(3) The sales transaction is not:(A) A continuing one; or(B) Held more than ten (10) times a year.

(A) A continuing one; or

(B) Held more than ten (10) times a year.

(c) (1) The provisions of this section shall not apply to a sale made by a nonprofit hospital, a cafeteria at a nonprofit hospital, or a gift shop at a nonprofit hospital, whether operated by the hospital, a hospital auxiliary, or other nonprofit organization.(2) The provisions of this section shall also not apply to a gift shop operated by a charitable organization at a for-profit hospital.

(1) The provisions of this section shall not apply to a sale made by a nonprofit hospital, a cafeteria at a nonprofit hospital, or a gift shop at a nonprofit hospital, whether operated by the hospital, a hospital auxiliary, or other nonprofit organization.

(2) The provisions of this section shall also not apply to a gift shop operated by a charitable organization at a for-profit hospital.