006.05.22 Ark. Code R. 001

Current through Register Vol. 49, No. 10, October, 2024

Rule 006.05.22-001 - Philanthropic Investment in Arkansas Kids Program Rules

I.Definitions

As used in this Rule:

A. "Commercial Poultry Water Sales Tax Exemption Certificate" or "exemption certificate" means the certificate provided by the purchaser of water for exclusive use in the operation of a Poultry farm attesting to the purchaser's entitlement to the exemption;

B. "Poultry" means chickens, turkeys, ducks, geese, and any other domesticated birds that are edible by humans; and

C. "Poultry farm" means a facility used for the commercial production of poultry, including a broiler or turkey grow-out house, laying house, hatching unit, nursery unit, and breeding house.

II.Exemption from Tax

A. The sale of water for exclusive use in the operation of a Poultry farm is exempt from the gross receipts tax levied by the Arkansas Gross Receipts Tax Act of 1941, Ark. Code Ann. § 26-52-101et seq. and the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, Ark. Code Ann. § 26-53-101et seq. when the conditions of this Rule are met.

B. The water must be separately metered by the water utility or provider for the exclusive use of the Poultry farm to qualify for the exemption in ILA.

III.Water Provider Requirements

A. At or before the installation of the separate meter to comply with ILB, the water utility or provider must obtain a Commercial Poultry Water Sales Tax Exemption Certificate from the purchaser certifying that the poultry farm is eligible for the exemption.

1. The water utility or provider must retain the exemption certificates provided at the time of the separate metering that certifies each meter is for exclusive use in the commercial production of poultry.

2. A direct pay permit holder must retain a copy of the exemption certificate required by IILA to claim the exemption for water that is used exclusively in the commercial production of poultry.

Source: Ark. Code Ann. § 26-52-453.

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006.05.22 Ark. Code R. 001

Adopted by Arkansas Register Volume 47 Number 06, Effective 6/3/2022

Amended by Arkansas Register Volume 47 Number 07, Effective 7/1/2022