Section 26-63-301 - Short-term rentals of tangible personal property - Definitions(a) As used in this section: (1) "Motor vehicle" means any vehicle required to be licensed for highway use under Arkansas law; and(2) "Short-term rental" means a rental or lease of tangible personal property for a period of less than thirty (30) days, except rentals or leases of motor vehicles, trailers, or farm machinery and equipment.(b)(1) In addition to the gross receipts tax levied by the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., and the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq., there is levied a short-term rental tax of one percent (1%) on the gross receipts received from the short-term rental of tangible personal property.(2) The tax levied by this section is applicable to a short-term rental regardless of whether the gross receipts tax levied by the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., or the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq., was paid on the rented tangible personal property at the time of purchase.(c) The tax levied by this section does not apply to the lease or rental of: (1) A diesel truck leased or rented for commercial shipping; and(2) Farm machinery or farm equipment leased or rented for a commercial purpose.(d) The tax levied by this section does not apply to a short-term rental of tangible personal property that is subject to the tourism tax levied in § 26-63-401 et seq.