Title 26, Taxation

(a) There is specifically exempted from the tax imposed by §§ 26-52-301 and 26-52-302, the gross receipts or gross proceeds derived from the sale of substitute fuel used in producing, manufacturing, fabricating, assembling, processing, finishing, or packaging of articles of comme…

(a) The gross receipts or gross proceeds derived from the sale or lease of railroad rolling stock manufactured for use in transporting persons or property in interstate commerce is exempt from the gross receipts tax levied by this chapter. (b) (1) As used in this section, “railro…

(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 chapter, as amended, including, but not limited to, §§ 26-52-301 and 26-52-302, the gross receipts or gross proceeds derived from the sale of parts and other tangible personal property incorporated into or which ultimate…

(a) (1) The gross receipts or gross proceeds derived from the sale of gas produced from biomass in a facility meeting all of the eligibility requirements for the credit allowed under 26 U.S.C. § 45K, as in effect on December 31, 1996, and sold to an entity for the purpose of gene…

(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 sal…

(a) The gross receipts or gross proceeds derived from the sale of machinery, new and used equipment, and related attachments that are sold to or used by a person engaged primarily in the harvesting of timber are exempt from the taxes levied by this chapter and the Arkansas Compen…

(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 a 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) This chapter;(2) The Arkansas Compens…

(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 this state;(2) “Semitrailer” means every vehicle with or without motive power, including a pole trailer, drawn by a truck tractor …

(a) (1) As used in this section, “instructional materials” includes:(A) Traditional books, sheet music, and trade books in printed and bound form;(B) Activity-oriented educational programs that may include manipulatives;(C) Hand-held calculators;(D) Technology-based educational m…

The gross receipts or gross proceeds derived from the sale of electricity used for the production of chlorine and other chemicals using a chlor-alkali manufacturing process are exempt from the gross receipts tax levied by this chapter.

(a) As used in this section:(1) “Livestock” means any mammal the products of which ordinarily are used for food or human consumption;(2) “Livestock reproduction equipment” means any of the following used in the reproduction of livestock:(A) Nitrogen;(B) Nitrogen tanks; or(C) Any …

(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) The gross receipts or gross proceeds derived from the sale of natural gas and electricity used in the manufacturing of tires in this state are exempt from the:(1) Gross receipts tax levied by this chapter; and(2) Compensating use tax levied by the Arkansas Compensating Tax Ac…

(1) The gross receipts or gross proceeds derived from the sale of thermal imaging equipment purchased by a county government for use by law enforcement aircraft are exempt from the:(1) Gross receipts tax levied by this chapter; and(2) Compensating use tax levied by the Arkansas C…

The gross receipts or gross proceeds from the sale of tangible personal property, specified digital products, a digital code, or a service to the American Scent Dog Association, Inc., are exempt from the gross receipts tax levied by this chapter and the compensating use tax levie…

(a) As used in this section:(1) “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 is less than one hundred dollars ($100);(2) “Clothing accessory or equipment” means an incidenta…

The gross receipts or gross proceeds derived from the sale, lease, or rental of a keg that is used to sell beer at wholesale by a wholesale manufacturer of beer are exempt from the gross receipts tax levied by this chapter and the compensating use tax levied by the Arkansas Compe…

(a) As used in this section, “utility” means electricity, liquefied petroleum gas, and natural gas. (b) (1) The gross receipts or gross proceeds derived from the sale of a utility used by a grain drying and storage facility are exempt from the gross receipts tax levied by this ch…

(a) The taxes levied under §§ 26-52-301 and 26-52-302 on the gross receipts or gross proceeds from the sale of the following are subject to a refund or exemption as provided in this section:(1) Machinery and equipment purchased to modify, replace, repair, or maintain, either in w…

(a) The gross receipts or gross proceeds derived from the sale of a dental appliance to or by a dentist, orthodontist, oral surgeon, maxillofacial surgeon, or endodontist are exempt from the gross receipts tax levied by this chapter, and the compensating use tax levied by the Ark…

(a) The gross receipts or gross proceeds from the sale of tangible personal property, specified digital products, a digital code, or a service to a nonprofit blood donation organization are exempt from the gross receipts tax levied by this chapter and the compensating use tax lev…

(a) As used in this section:(1) “Aquaculture” means the active cultivation of domesticated fish;(2) “Domesticated fish” means fish that are spawned, grown, managed, harvested, and marketed on an annual, semiannual, biennial, or short-term basis in waters that are confined within …

(a) The gross receipts or gross proceeds derived from the sale of an aircraft within the state are exempt from the gross receipts tax levied under this chapter and the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq., if the aircraft i…

The gross receipts or gross proceeds derived from the sale of a washer-extractor required under § 14-284-412 to a fire department or intergovernmental council of a county are exempt from the gross receipts tax levied by this chapter and the compensating use tax levied by the Arka…

(a) As used in this section, “poultry farm” means a facility used for the commercial production of poultry, including without limitation a broiler or turkey grow-out house, laying house, hatching unit, nursery unit, and breeding house. (b) (1) The gross receipts or gross proceeds…

(a) As used in this section:(1) “Bullion” means a bar, ingot, or coin:(A) Manufactured in whole or in part of gold, silver, platinum, or palladium;(B) That was or is used solely as a medium of exchange, security, or commodity by any state, the United States Government, or a forei…

(a) (1) As used in this section, “mortality composting device” means a device that:(A) Is designed for the purposes of the biological decomposition and stabilization of organic matter under controlled aerobic conditions; and(B) Confines the composting materials to a container or …

(a) As used in this section:(1) “Data center equipment” means computer equipment, software, and related equipment and services purchased or leased either for immediate use or stored for future use in this state for the processing, storage, retrieval, or communication of data, inc…

(a) As used in this section, “qualified nonprofit organization” means an organization described in 26 U.S.C. § 501(c)(3), as it existed on January 1, 2025, that:(1) Has an annual operating budget of less than two hundred thousand dollars ($200,000); and(2) Performs charitable com…

(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:(1) “Direct compensation” means wages, salaries, bonuses, and commissions;(2) “Eligible facility costs” means expenditures for the development, acquisition, construction, expansion, renovation, refurbishment, maintenance, and operation of a qualified f…

(a) (1) The tax levied under this chapter shall be due and payable on the first day of each month, except as provided in this subchapter, by any person liable for the payment of any tax due under this chapter.(2) When a taxpayer becomes liable to file a report with the Secretary …

(a) Any person taxable under this chapter doing business wholly or partly on a credit basis may make application to the Secretary of the Department of Finance and Administration for permission to prepare his or her returns on the basis of cash actually received. (b) The applicati…

(a) At the time of transmitting the returns required under this chapter to the Secretary of the Department of Finance and Administration, the taxpayer shall remit with the returns to the secretary ninety-eight percent (98%) of the state tax due under this chapter and ninety-eight…

(a) Every person selling new or used aircraft in this state, whether from an established business, under a dealership, as a flying service, or as a private individual, shall obtain and hold a permit as provided in § 26-52-202 and shall make a monthly report and remittance to the …

(a) One performing taxable labor for another person who holds a retailer's permit shall not be required to collect and remit sales tax on the labor when the labor is to be charged to, and the sales tax collected from, the ultimate consumer. (b) The intent of this section is that …

(a) (a) The gross receipts tax levied by this state shall be due and collected by a florist who transmits an order by telegraph, telephone, or other means of communication for flowers, floral arrangements, potted plants, or any other article common to the florist business for del…

(a) The tax levied by this chapter shall be paid to the Secretary of the Department of Finance and Administration by:(1) The seller of tangible personal property, specified digital products, or a digital code;(2) The seller or collector of admissions to places of amusement, recre…

(a) (1) The Secretary of the Department of Finance and Administration by agreement with any consumer or user may:(A) Permit a consumer or user under the agreement to accrue and remit gross receipts taxes directly to the Department of Finance and Administration, instead of the tax…

(a) (1) On or before the time for registration as prescribed by § 27-14-903(a), a consumer shall pay to the Secretary of the Department of Finance and Administration the tax levied by this chapter and all other gross receipts taxes levied by the state with respect to the sale of …

(a) A person who purchases a prepaid funeral contract may pay gross receipts taxes on the tangible personal property purchased in the prepaid funeral contract on the date the prepaid funeral contract is purchased in lieu of paying the taxes at the time of the person's death. (b) …

(a) All retailers within the State of Arkansas registered to collect the Arkansas gross receipts tax who, on July 1, have average net sales of more than two hundred thousand dollars ($200,000) per month for the preceding fiscal year that began on July 1 and ended on June 30 shall…

(a) When any person engaged in the business of selling motor vehicles, motorcycles, motor-driven cycles, three-wheeled all-terrain vehicles, four-wheeled all-terrain vehicles, six-wheeled all-terrain vehicles, or motorized bicycles, sells any motorcycle or motor-driven cycle that…