Title 26, Taxation

(a) The administration of this chapter is vested in and shall be exercised by the Secretary of the Department of Finance and Administration. (b) The secretary shall promulgate rules and prescribe forms for the proper enforcement of this chapter.

(a) The administration cost of this chapter shall not exceed three percent (3%) of the actual revenues collected. (b) If any funds appropriated for the administration of this chapter shall remain in the hands of the Secretary of the Department of Finance and Administration at the…

All taxes, interest, penalties, and costs received by the Secretary of the Department of Finance and Administration under the provisions of this chapter shall be general revenues and shall be deposited into the State Treasury to the credit of the State Apportionment Fund. The Tre…

The Secretary of the Department of Finance and Administration shall give each gross receipts tax permit holder under § 26-52-201 written notice of any new state sales and use tax law or any change in the present state sales and use tax law within thirty (30) days after the adjour…

(a) A remote seller or a marketplace facilitator that sells or facilitates the sale of tangible personal property, taxable services, a digital code, or specified digital products for delivery into Arkansas shall collect and remit the applicable sales tax levied under this chapter…

(a) It shall be unlawful for any taxpayer to transact business within this state prior to issuance and receipt of an Arkansas gross receipts tax permit from the Secretary of the Department of Finance and Administration. (b) A separate permit for each business location must be obt…

(a) Every taxpayer shall file with the Secretary of the Department of Finance and Administration an application for a gross receipts tax permit to conduct the taxpayer's business, setting forth such information as the secretary may require. (b) (1) The application shall be signed…

(a) The Secretary of the Department of Finance and Administration shall require prior to the issuance of any new Arkansas gross receipts tax permit the payment of a nonrefundable fee of fifty dollars ($50.00), which shall be remitted with each new application for a permit. (b) Al…

The permit shall not be assignable and shall be valid only for the person in whose name it is issued and for business transactions at the place designated therein.

The permit shall at all times be conspicuously displayed at the place of business for which the permit was issued.

All permits issued under the provisions of this chapter shall expire at the time of cessation of business at the place or location of the business within this state.

(a) (1) Any taxpayer operating under a permit as provided in this subchapter, upon discontinuance of business by sale or otherwise, shall return the permit to the Secretary of the Department of Finance and Administration for cancellation together with a remittance of any unpaid o…

All proceedings relative to the issuance, revocation, or suspension of a permit under this subchapter shall be governed by the provisions of the Arkansas Tax Procedure Act, § 26-18-101 et seq., and the Independent Tax Appeals Commission Act, § 26-18-1101 et seq.

(a) (1) (A) The gross receipts tax permit of any taxpayer shall automatically expire when the taxpayer has filed twelve (12) consecutive monthly reports reporting zero (0) sales.(B) (i) The Secretary of the Department of Finance and Administration shall notify the taxpayer in wri…

(1) Except for used motor vehicles, trailers, and semitrailers that are taxed under § 26-52-324, there is levied an excise tax of three percent (3%) upon the gross proceeds or gross receipts derived from all sales to any person of the following:(1) The following items:(A) Tangibl…

(a) (1) In addition to the excise tax levied upon the gross proceeds or gross receipts derived from all sales by this chapter, except for used motor vehicles, trailers, and semitrailers that are taxed under § 26-52-324, there is levied an excise tax of one percent (1%) upon all t…

(a) The rate of tax shall be one percent (1%) above the state sales tax rate as levied by the General Assembly, by initiatives enacted by the people of the State of Arkansas, and by amendments to the Arkansas Constitution if:(1) An Arkansas city or incorporated town is divided by…

(a) The excise tax levied by this chapter and by any act supplemental thereto, is levied on gross receipts or gross proceeds received from the following:(1) (A) Sales of computer software, including prewritten computer software, which shall be taxed as sales of tangible personal …

Sales of tangible personal property, specified digital products, a digital code, and services to financial institutions are subject to the Arkansas gross receipts tax levied in this chapter the same as such sales to other business corporations.

All sales of beer, wine, liquor, or any intoxicating beverages shall be regularly reported by vendors as taxable receipts under the provisions of this chapter.

(a) (1) Sales of services, specified digital products, digital codes, and tangible personal property, including materials, supplies, and equipment, made to contractors who use them in the performance of a contract are declared to be sales to consumers or users and not sales for r…

(a) Every person engaged in the business of owning, operating, or leasing coin-operated pinball machines, coin-operated music machines, coin-operated mechanical games, and all other similar devices, shall: (1) Obtain and hold a permit as provided by this chapter; and (2) Make a m…

(a) (1) A taxpayer is allowed a deduction from taxable sales for a bad debt.(2) Any deduction taken under this section that is attributed to a bad debt shall not include interest. (1) A taxpayer is allowed a deduction from taxable sales for a bad debt. (2) Any deduction taken und…

(a) Sales of a prepaid calling service or a prepaid wireless calling service and the recharge of a prepaid calling service or a prepaid wireless calling service shall be subject to the Arkansas gross receipts tax levied by this chapter and the compensating use tax levied by the A…

(a) The gross receipts or gross proceeds derived from the sale of the following are subject to the gross receipts tax levied by this chapter:(1) Any intrastate, interstate, and international telecommunications service that is sourced in this state in accordance with subsection (d…

(a) The gross proceeds or gross receipts derived from the following services are subject to this chapter:(1) Wrecker and towing services;(2) Collection and disposal of solid wastes;(3) The cleaning of parking lots and gutters;(4) Dry cleaning and laundry services;(5) Industrial l…

(a) As used in this section:(1) “Food” and “food ingredients” mean the same as defined in § 26-52-103 except that “food” and “food ingredients” do not include prepared food; and(2) “Prepared food” means the same as defined in § 26-52-103 except that “prepared food” does not inclu…

(a) As used in this section, “heavy equipment” means:(1) Asphalt pavers;(2) Boring machines;(3) Bulldozers;(4) Cable plows;(5) Compaction equipment;(6) Concrete pavers;(7) Cranes;(8) Crawler tractors and loaders;(9) Demolition equipment;(10) Earth movers;(11) Excavators;(12) Load…

(a) (1) (A) The gross receipts or gross proceeds tax levied in §§ 26-52-301 and 26-52-302 and this section shall be levied at a rate of zero percent (0%) on the sale of natural gas, electricity, and coal to a manufacturer for use directly in the actual manufacturing process.(B) H…

(a) The excise tax levied by this chapter and the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq., is levied on the gross receipts or gross proceeds derived from the following:(1) The lease or rental of a portable toilet on a long-term or short-term basis; and(2) Any s…

(a) The excise tax levied by this chapter and the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq., is levied on the gross receipts or gross proceeds derived from a fishing guide service provided as a part of a guided fishing trip if the fishing guide service is purchas…

(a) As used in this section, “withdrawal from stock” means the withdrawal or use of goods, wares, merchandise, or tangible personal property from an established business or from the stock in trade of the established reserves of an established business for consumption or use in th…

(1) The Secretary of the Department of Finance and Administration shall either:(1) (A) Publish a list of the Universal Product Codes for items that meet the definition of:(i) A candy under § 26-52-103 or § 26-53-102; or(ii) A soft drink under § 26-52-103 or § 26-53-102.(B) The li…

(a) In lieu of the gross receipts or gross proceeds taxes levied under §§ 26-52-301 and 26-52-302, there is levied an excise tax on the gross receipts or gross proceeds derived from the sale of a used motor vehicle, trailer, or semitrailer that has a sales price of at least four …

(1) There is specifically exempted from the tax imposed by this chapter the following:(1) The gross receipts or gross proceeds derived from the sale of tangible personal property, specified digital products, a digital code, or services by churches, except when the organizations m…

(a) There is specifically exempted from the tax imposed by this chapter the following:(1) (A) Gross receipts or gross proceeds derived from the sale of tangible personal property consisting of machinery and equipment used directly in producing, manufacturing, fabricating, assembl…

(a) As used in this section:(1) (A) “Farm equipment and machinery” means implements used exclusively and directly in farming.(B) “Farm equipment and machinery” includes:(i) Irrigation pipe used to carry water from an irrigation well to the crops produced in farming regardless of …

(a) All feedstuffs used in the commercial production of livestock or poultry in this state are exempt from the Arkansas gross receipts tax levied by this chapter. (b) As used in this section, “feedstuffs” means: (1) Processed or unprocessed grains;(2) Mixed or unmixed grains;(3) …

(1) The gross receipts or gross proceeds derived from sales of the following are exempt from the Arkansas gross receipts tax levied by this chapter:(1) Agricultural fertilizer;(2) Agricultural limestone;(3) Agricultural chemicals, including, but not limited to:(A) Agricultural pe…

(a) (1) The gross receipts or gross proceeds derived from the sale, purchase, or use of prescription drugs by licensed pharmacists, hospitals, or physicians when sold, purchased, or administered for human use and from the sale of oxygen sold for human use on prescription of a lic…

The gross receipts and gross proceeds derived from the sale and purchase of vessels, barges, and towboats of at least fifty (50) tons load displacement, and parts and labor used in the repair and construction of them, are exempt from the Arkansas gross receipts tax levied by this…

(1) The gross receipts or gross proceeds derived from the sale of the following are exempt from the gross receipts tax levied by this chapter, and the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq.:(1) Bagging and other packaging and…

(a) (1) Any person, whether an established business or an individual, that is engaged in the business of selling aircraft in this state, holds a retail sales tax permit, and holds aircraft in stock for resale may purchase aircraft exempt for resale and use the aircraft for rental…

(a) No tax shall be levied or collected upon gross receipts derived from the sale of motor vehicles to municipalities and counties or to state-supported colleges and universities or to public school districts in this state. (b) No tax shall be levied or collected upon the gross r…

(1) The gross receipts or gross proceeds derived by municipalities and counties of this state from the following are exempt from the excise tax levied by this chapter:(1) Sale of tickets or admissions to places of amusement or to athletic, entertainment, or recreational events;(2…

(a) Gross receipts or gross proceeds from the sale of tickets for admission to athletic events and interscholastic activities at public and private elementary and secondary schools in this state shall be exempt from the provisions of the Arkansas gross receipts tax. (b) Gross rec…