Title 26, Taxation

The Secretary of the Department of Finance and Administration shall create within the Revenue Division of the Department of Finance and Administration the Sales and Use Tax Section for the collection, enforcement, and administration of the tax levied by this subchapter.

(a) There is levied and there shall be collected from every person in this state a tax or excise for the privilege of storing, using, distributing, or consuming within this state tangible personal property, specified digital products, a digital code, or a taxable service purchase…

(a) (1) In addition to the excise tax levied upon the privilege of storing, using, distributing, or consuming tangible personal property, specified digital products, a digital code, and taxable services within this state by this subchapter, there is levied an excise tax of one pe…

(a) For the following public carriers, a state compensating tax of three percent (3%) of the gross purchase price is levied on the tangible personal property of:(1) Motor carriers, consisting of tractors, trailers, semitrailers, trucks, buses, and other rolling stock, including r…

(1) The excise tax levied by this subchapter and by any act supplemental to this subchapter is levied on the privilege of storing, using, distributing, or consuming within this state any of the following:(1) (A) Computer software, including prewritten computer software, which sha…

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

A bad debt deduction from a taxable sale under this subchapter is allowed and shall be taken in the same manner as provided in § 26-52-309.

(1) There are specifically exempted from the taxes levied in this subchapter:(1) Property or services, the storage, use, distribution, or consumption of which this state is prohibited from taxing under the United States Constitution or laws or the Arkansas Constitution or laws; a…

Unprocessed crude oil is specifically exempted from the taxes levied in this subchapter.

(a) There is specifically exempted from the taxes levied in this subchapter:(1) (A) Only to the extent that the machinery and equipment is purchased and used for the purposes set forth in this subdivision (a)(1), machinery and equipment used directly in the producing, manufacturi…

(a) The tax levied in this subchapter shall not apply to aircraft, aircraft equipment, and railroad parts, cars, and equipment, or to tangible personal property owned or leased by aircraft, airmotive, or railroad companies brought into the State of Arkansas solely and exclusively…

The gross receipts and gross proceeds derived from the sale and purchase of vessels, barges, and towboats of at least a fifty-ton load displacement and parts and labor used in the repair and construction of them are exempt from the state compensating tax levied by this subchapter…

(a) The gross receipts or gross proceeds derived from the sale of motor fuel to the owner or operator of a motor bus operated on designated streets according to regular schedule under municipal franchise which is used for municipal transportation purposes shall be exempt from the…

The storage, use, or consumption of a modular home constructed from materials on which the Arkansas gross receipts tax or state compensating tax has once been paid shall be exempt from the state compensating tax.

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

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

(1) Every vendor selling tangible personal property, specified digital products, a digital code, or taxable services for storage, use, distribution, or consumption in this state shall:(1) Register with the Secretary of the Department of Finance and Administration;(2) Provide the …

Every vendor selling tangible personal property, specified digital products, a digital code, or taxable services for storage, use, distribution, or consumption in this state shall furnish all agents with a statement to the effect that the agent's principal has been and is complyi…

(a) Every person storing, using, distributing, or consuming in this state tangible personal property, specified digital products, a digital code, or taxable services purchased from a vendor shall be liable for the tax imposed by this subchapter, and the liability shall not be ext…

(a) (1) (A) Every vendor making a sale of tangible personal property, specified digital products, a digital code, or taxable services directly or indirectly for the purpose of storage, use, distribution, or consumption in this state shall collect the tax from the purchaser and gi…

(a) (1) (A) The tax imposed by this subchapter shall be due and payable to the Secretary of the Department of Finance and Administration monthly on or before the twentieth day of each month except as provided in this subchapter.(B) When a taxpayer has become liable to file a repo…

(a) (1) Upon being registered in this state, a new or used motor vehicle, trailer, or semitrailer required to be licensed in this state is subject to the tax levied in this subchapter and all other use taxes levied by the state regardless of whether the motor vehicle, trailer, or…

A governmental agency may apply to the Secretary of the Department of Finance and Administration for refund of the amount of the tax levied and paid upon sales to it for food and food ingredients used for free distribution to the poor and needy or to public penal and eleemosynary…

The tax or excise levied by this subchapter shall constitute a lien upon the property of the purchaser of tangible personal property coming within the provisions of this subchapter.

(a) In all suits brought in any of the courts of this state by the Secretary of the Department of Finance and Administration against any vendor for any violation of this subchapter, the suits shall be brought thereon in any courts of this state having jurisdiction of the subject …

(a) (1) (A) (i) This subchapter does not apply to tangible personal property, specified digital products, a digital code, or taxable services used, consumed, distributed, or stored in this state upon which a like tax equal to or greater than the tax imposed by this subchapter has…

(a) A business which operates, or contracts for the operation of, a childcare facility for the primary purpose of providing childcare services to its employees may obtain a refund of the compensating use tax paid on the purchase of construction materials and furnishings used in t…

Forms constructed of plaster, cardboard, fiberglass, natural fibers, synthetic fibers, or composites thereof which determine the physical characteristics of an item of tangible personal property and which are destroyed or consumed during the manufacture of the item for which the …

(1) The gross receipts or gross proceeds derived from sales of natural gas used as fuel in the process of manufacturing glass is hereafter exempt from:(1) The Arkansas gross receipts tax levied by §§ 26-52-301 and 26-52-302;(2) The Arkansas compensating use tax levied by §§ 26-53…

(1) The gross receipts or gross proceeds derived from sales to the Community Services Clearinghouse, Inc., of Fort Smith are hereafter exempt from:(1) The Arkansas gross receipts tax levied by §§ 26-52-301, 26-52-302, and 26-63-402;(2) The Arkansas compensating use tax levied by …

The gross receipts or gross proceeds derived from the sale of food and food ingredients to nonprofit agencies organized under the Arkansas Nonprofit Corporation Act, § 4-28-201 et seq., for free distribution to the poor and needy shall be exempt from the Arkansas gross receipts t…

Railroad rolling stock manufactured for use in transporting persons or property in interstate commerce is exempt from the taxes levied in this subchapter.

(a) A contractor that purchases tangible personal property which becomes a recognizable part of a completed structure or improvement to real property and which is purchased for use or consumption in the performance of construction contracts shall be entitled to a rebate on any ad…

There is specifically exempted from any tax imposed by this subchapter including, but not limited to, §§ 26-53-106 — 26-53-108, parts and other tangible personal property incorporated into or which ultimately become a part of railroad parts, railroad cars, and equipment brought i…

Purchases of prepaid telephone calling cards or prepaid authorization numbers and the recharge of prepaid telephone calling cards or prepaid authorization numbers as set out in § 26-52-314 shall be subject to this subchapter and any act supplemental to this subchapter.

(a) (1) Gross receipts or gross proceeds derived from the rental, sale, or repair of durable medical equipment prescribed by a physician, mobility enhancing equipment prescribed by a physician, a prosthetic device prescribed by a physician, and disposable medical supplies prescri…

(a) The gross receipts or gross proceeds derived from a purchase of or repair to fire protection equipment and emergency equipment to be owned by and exclusively used by a volunteer fire department are exempt from the taxes levied under:(1) The Arkansas Gross Receipts Act of 1941…

(a) The gross receipts or gross proceeds derived from sales of electricity and natural gas used in the process of manufacturing wall and floor tile by manufacturers of tile classified in Standard Industrial Classification 3253 are exempt from:(1) The Arkansas gross receipts tax l…

(a) As used in this section:(1) “Person” means a natural person who resided in this state at the time of purchasing a truck tractor or semitrailer in another state;(2) “Semitrailer” means every vehicle with or without motive power, including a pole trailer, drawn by a truck tract…

(a) As used in this section:(1) “Food” and “food ingredients” mean the same as defined in § 26-53-102 except that “food” and “food ingredients” do not include prepared food; and(2) “Prepared food” means the same as defined in § 26-53-102 except that “prepared food” does not inclu…

(a) As used in this section:(1) “Exemption certificate” means an exemption certificate issued by the Secretary of the Department of Finance and Administration under subdivision (d)(1) of this section;(2) “Nonprofit organization” means any organization described in 26 U.S.C. § 501…

(a) Every person purchasing heavy equipment as defined in § 26-52-318 for storage or use within this state from a dealer located outside of this state, and who does not pay tax to the out-of-state dealer, is liable for the use tax imposed by this chapter. (b) The purchaser shall …

(a) (1) (A) The compensating use tax levied in §§ 26-53-106 and 26-53-107 and this section shall be levied at a rate of zero percent (0%) on natural gas, electricity, and coal purchased by a manufacturer for use directly in the actual manufacturing process.(B) However, natural ga…

(a) The taxes levied under §§ 26-53-106 and 26-53-107 on the privilege of storing, using, distributing, or consuming the following within this state are subject to a refund or exemption as provided in this section:(1) Machinery and equipment purchased to modify, replace, repair, …

(a) (1) In lieu of the compensating use taxes levied under §§ 26-53-106 and 26-53-107, there is levied an excise tax for the privilege of storing, using, distributing, or consuming a used motor vehicle, trailer, or semitrailer within this state if the sales price of the used moto…

(a) As used in this section, “motorboat” means the same as defined in § 27-101-103. (b) (1) Upon applying for a certificate of number in this state, a new or used motorboat sold by a motorboat dealer located outside of the state and required to be registered with a certificate of…