006-05-06 Ark. Code R. § 5-ET-5

Current through Register Vol. 49, No. 3, March, 2024

Rule 006.05.06-005-ET-5 - SHORT-TERM RENTAL TAX

A. In addition to the state and local sales or use tax, a one percent (1%) short-term rental tax is to be collected by the lessor on short-term rentals of tangible personal property regardless of whether Arkansas gross receipts or use tax was paid by the lessor at the time of purchase. (See GR-20.)

B. The short-term rental tax does not apply to the following:

1. Farm machinery or equipment leased or rented for a commercial purpose;

2. Motor vehicles, trailers, semi-trailers, or other vehicle required to be licensed for highway use under Arkansas law;

3. A diesel truck leased or rented for commercial shipping; and

4. Short-term rentals of tangible personal property which are subject to the two percent (2%) tourism tax. (See Ark. Code Ann. § 26-63-401 et seq. and ET-8.)

C. Vehicles not otherwise exempt and which are not required to be registered for highway use are subject to the short-term rental tax.

D. Lessors must maintain sufficient records to establish the intended term of the rental. In the absence of adequate documentation, payment by the lessee for rental charges for periods of less than thirty (30) days shall be evidence that the term of the rental was for less than thirty (30) days.

E. Aircraft rented for a period of less than thirty (30) days is subject to the short-term rental tax. The short-term rental tax does not apply to charter rentals. (See GR-14.)

006.05.06 Ark. Code R. § 005-ET-5

Ark. Code Ann. § 26-63-301