SALES & USE TAX EXEMPTIONS    
     
Statutes ( Title 26 Subtitle 5,
Chapter 52 and 53)
Gross Receipts Tax Rules
   
 
Arkansas - Sales and Use Tax Exemptions and Exemption Certificates

Arkansas gross receipts tax is an excise tax on gross receipts from the sale of tangible personal property, certain services and admission fees. (A.C.A. § 26-52-301)

ARKANSAS EXEMPTIONS: Some of the exemptions are sale for resale; sale to government entities, Arkansas Search Dog Association, Inc, Boys Clubs of America, Girls Clubs of America or any local councils or organizations of the Girls Clubs of America, Poets' Roundtable of Arkansas, 4-H Clubs and FFA Clubs, Arkansas 4-H Foundation, Arkansas Future Farmers of America Foundation, Arkansas Future Farmers of America Association; Sale of products used for livestock, poultry, and agricultural production; durable medical equipment, mobility-enhancing equipment, prosthetic devices, disposable medical supplies, fire protection equipment, emergency equipment, newspaper, advertising space in newspapers and publications; Sale of admission tickets sold by municipalities, counties, schools, universities and colleges; tangible personal property and services by churches, charitable organizations. (A.C.A §§ 26-52-401 through 26-52-443)

CAUTION : Sales tax exemptions mentioned above are very briefly described. Please see the exemption statute and the applicable regulations for details. Transactions that do not meet the requirements of the exemption statute and its applicable regulations do not qualify for the sales tax exemptions.

LIABILITY: The sales tax liability for all sales of tangible personal property and taxable services is upon the seller unless the purchaser claims an exemption. The seller shall obtain identifying information of the purchaser and the reason the purchaser is claiming the exemption in the manner prescribed by the Director of the Department of Finance and Administration. (A.C.A. § 26-52-517)

ARKANSAS EXEMPTION CERTIFICATES: An exemption may be claimed through the use of the general exemption certificate (Form ST 391) or the multistate certificate of exemption (Form F0003).

  • Exemption Certificate - ST-391
  • SSUTA Exemption Certificate - Form F003
  • Commercial Farm Exemption Certificate-ST-403 : Purchase of farm equipment and machinery is exempt if the seller accept a certification from the purchaser that the item (i) will be used exclusively in the agricultural production of food or fiber as a retail business; and either (ii) used directly in the actual agricultural production of food or fiber to be sold in processed form or at retail; or (iii) used directly in the agricultural production of farm products to be fed to livestock or poultry, which is to be sold ultimately in processed form at retail. (A.C.A. § 26-52-403, Regulation GR-51)

As an alternative to an exemption certificate, a seller may accept a certification or other information from the purchaser that establishes the transaction is exempt. (A.C.A. § 26-52-517, Regulation GR-79)

ARKANSAS EXEMPTION CERTIFICATE VERIFICATION: Permit ID Inquiry!

 
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