006.05.06 Ark. Code R. 005-GR-91
Current through Register Vol. 49, No. 9, September, 2024
Rule 006.05.06-005-GR-91 - LOCAL GROSS RECEIPTS TAXESThe collection and administration of a gross receipts tax collected for any town, city, or county by the Commissioner shall be collected and administered in accordance with these rules
A. MAXIMUM TAX LIMITATION. 1. All local taxes shall be collected only on the first $2,500.00 of gross receipts, gross proceeds, or sales price of a single motor vehicle, aircraft, watercraft, modular home, manufactured home, or mobile home.a. The term "motor vehicle" means a self-propelled vehicle registered for highway use.b. The term "watercraft" is defined to mean a boat, canoe, kayak, sailboat, party barge, raft, jet ski, houseboat, or amphibious vehicle. Watercraft does not include a tug boat or barge.2. Sellers should apply the $2,500.00 cap on the sale of a single motor vehicle, aircraft, watercraft, modular home, manufactured home, or mobile home. The purchase of additional tangible personal property in conjunction with the above enumerated items are eligible for the cap if the property is installed, affixed, or otherwise becomes a part of the motor vehicle, aircraft, watercraft, modular home, manufactured home, or mobile home prior to purchase. Example: J.T. purchases a motorcycle. While at the dealer, J.T. picks out a windshield, saddle bags, pipes, and a helmet. If the windshield, saddle bags, and pipes are installed prior to the purchase, then those items are eligible for the cap. Tax should be calculated on the helmet separately.
3. A rebate of local sales and use tax is available for certain qualifying purchases of tangible personal property or a taxable service. (See Ark. Code Ann. § 26-52523 and GR-92.)B. DETERMINATION OF TAX DUE. 1. Motor Vehicles and Trailers. The local sales tax levied by the city and county of the purchaser's residence shall be due on the sale of a motor vehicle or trailer.2. Other Sales of Tangible Personal Property and Services. Sales of tangible personal property and taxable services are sourced in accordance with the sourcing rules provided in Ark. Code Ann. §§ 26-52-521, 26-52-522, and GR-76.C. DIRECT PAY PERMIT HOLDERS. A direct pay permit holder that makes taxable purchases of tangible personal property and services shall report and pay local sales or use tax on those purchases. The local tax shall be calculated pursuant to the sourcing rules provided in Ark. Code Ann. §§ 26-52-521, 26-52-522, and GR-76.006.05.06 Ark. Code R. 005-GR-91
Ark. Code Ann. §§ 26-74-212; 26-74-220; 26-74-320; 26-74-407; 26-74-412; 26-74-608; 26-75-216; 26-75-222; 26-75-319