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26-53-148. Natural gas and electricity used by manufacturers — Definition.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-53-148. Natural gas and electricity used by manufacturers — Definition.
(a)(1)(A) Beginning July 1, 2014, in lieu of the tax levied in §§ 26-53-106 and 26-53-107, there is levied an excise tax on the sales price of natural gas and electricity purchased by a manufacturer for use directly in the actual manufacturing process at the rate of one percent (1%).
(B)(i) Beginning July 1, 2015, the compensating use tax levied in §§ 26-53-106 and 26-53-107 and this section shall be levied at a rate of zero percent (0%) on natural gas and electricity purchased by a manufacturer for use directly in the actual manufacturing process.
(ii) However, natural gas and electricity purchased by a manufacturer for use directly in the actual manufacturing process shall remain subject to the excise tax of one-eighth of one percent (1/8 of 1%) levied in Arkansas Constitution, Amendment 75, and the temporary excise tax of one-half percent (½%) levied in Arkansas Constitution, Amendment 91.
(2) The taxes levied in this subsection shall be distributed as follows:
(A) Seventy-six and six-tenths percent (76.6%) of the tax, interest, penalties, and costs received by the Secretary of the Department of Finance and Administration shall be deposited as general revenues;
(B) Eight and five-tenths percent (8.5%) of the tax, interest, penalties, and costs received by the secretary shall be deposited into the Property Tax Relief Trust Fund; and
(C) Fourteen and nine-tenths percent (14.9%) of the tax, interest, penalties, and costs received by the secretary shall be deposited into the Educational Adequacy Fund.
(3)(A) The excise tax levied in this section applies only to natural gas and electricity purchased for use directly in the actual manufacturing process.
(B) Natural gas and electric
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-53-148
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:26-53-148
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: eae5a3415f9694342bb7a3cfb5ce265760e67595bcc0f29acef8f7c680a106a9
Source location: content.xml paragraph 22135
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26-53-148. Natural gas and electricity used by manufacturers — Definition.
(a)(1)(A) Beginning July 1, 2014, in lieu of the tax levied in §§ 26-53-106 and 26-53-107, there is levied an excise tax on the sales price of natural gas and electricity purchased by a manufacturer for use directly in the actual manufacturing process at the rate of one percent (1%).
(B)(i) Beginning July 1, 2015, the compensating use tax levied in §§ 26-53-106 and 26-53-107 and this section shall be levied at a rate of zero percent (0%) on natural gas and electricity purchased by a manufacturer for use directly in the actual manufacturing process.
(ii) However, natural gas and electricity purchased by a manufacturer for use directly in the actual manufacturing process shall remain subject to the excise tax of one-eighth of one percent (1/8 of 1%) levied in Arkansas Constitution, Amendment 75, and the temporary excise tax of one-half percent (½%) levied in Arkansas Constitution, Amendment 91.
(2) The taxes levied in this subsection shall be distributed as follows:
(A) Seventy-six and six-tenths percent (76.6%) of the tax, interest, penalties, and costs received by the Secretary of the Department of Finance and Administration shall be deposited as general revenues;
(B) Eight and five-tenths percent (8.5%) of the tax, interest, penalties, and costs received by the secretary shall be deposited into the Property Tax Relief Trust Fund; and
(C) Fourteen and nine-tenths percent (14.9%) of the tax, interest, penalties, and costs received by the secretary shall be deposited into the Educational Adequacy Fund.
(3)(A) The excise tax levied in this section applies only to natural gas and electricity purchased for use directly in the actual manufacturing process.
(B) Natural gas and electricity purchased for any other purpose shall be subject to the full compensating use tax levied under §§ 26-53-106 and 26-53-107.
(4) The excise tax levied in this section shall be collected, reported, and paid in the same manner and at the same time as is prescribed by law for the collection, reporting, and payment of all other Arkansas compensating use taxes.
(b) As used in this section, “manufacturer” means a:
(1) Manufacturer classified within sectors 31 through 33 or subsector 115111 of the North American Industry Classification System, as in effect on January 1, 2011; or
(2) Generator of electric power classified within sector 22 of the North American Industry Classification System, as in effect on January 1, 2011, that uses natural gas to operate a new or existing generating facility that uses combined-cycle gas turbine technology.
(c)(1) Except as otherwise provided in this subsection, the tax rate under subsection (a) of this section does not apply to a manufacturer as defined in subdivision (b)(2) of this section.
(2) In lieu of the tax rate under subsection (a) of this section, the excise tax rate levied on the sales price of natural gas and electricity purchased by a manufacturer as defined in subdivision (b)(2) of this section to operate a new or existing facility that uses combined-cycle gas turbine technology is as follows:
(A) Beginning January 1, 2012, five and one-eighth percent (5.125%);
(B) Beginning January 1, 2013, four and one-eighth percent (4.125%);
(C) Beginning January 1, 2014, two and five-eighths percent (2.625%); and
(D) Beginning January 1, 2015, one percent (1%).
(3) The taxes levied in this subsection shall be distributed in the same manner as stated in subsection (a) of this section.
(d) Natural gas and electricity subject to the reduced tax rate levied in this section shall be separately metered from natural gas and electricity used for any other purpose by the manufacturer or otherwise established under subsection (f) of this section.
(e) Before purchasing any natural gas or electricity at the reduced excise tax rate levied in this section, the secretary may require any seller of natural gas or electricity to obtain a certificate from the consumer, in the form prescribed by the secretary, certifying that the manufacturer is eligible to purchase natural gas and electricity at the reduced excise tax rate.
(f) The secretary shall promulgate rules for the proper administration of this section.
(g) The purchase of natural gas and electricity by a manufacturer shall continue to be subject to:
(1) The excise tax levied under Arkansas Constitution, Amendment 75, § 2; and
(2) All municipal and county compensating use taxes.
Cross-references
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Arkansas Code — all titles (historical 2020) · legal_authorities
26-53-106. Imposition and rate of tax generally — Presumptions.
(a) There is levied and there shall be collected from every person in this state a tax or excise for the privilege of storing, using, distributing, or consuming within this state tangible personal property, specified digital products, a digital code, or a taxable service purchased for storage, use, distribution, or consumption in this state at the rate of three percent (3%) of the sales price of the tangible personal property, specified digital products, digital code, or taxable service except for food and food ingredients that are taxed under § 26-53-145.
(b) This tax does not apply with respect to the storage, use, distribution, or consumption of tangible personal property, specified digital products, or a digital code purchased, produced, or manufactured outside this state until the transportation of the tangible personal property, specified digital products, or digital code has finally come to rest within this state or until the tangible personal property, specified digital products, or digital code has become commingled with the general mass of property of this state.
(c) This tax applies to use, storage, distribution, or consumption of tangible personal property, specified digital products, a digital code, or taxable service except as provided in this subchapter irrespective of whether the tangible personal property, similar articles of tangible personal property, specified digital products, digital code, or the taxable service is manufactured within the State of Arkansas, is available for purchase within the State of Arkansas, or any other condition.
(d)(1)(A) For the purpose of the proper administration of this subchapter and to prevent evasion of the tax and the duty to collect the tax impo
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-53-106
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 26-53-106. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-53-107. Additional taxes levied.
(a)(1) In addition to the excise tax levied upon the privilege of storing, using, distributing, or consuming tangible personal property, specified digital products, a digital code, and taxable services within this state by this subchapter, there is levied an excise tax of one percent (1%) upon all tangible personal property, specified digital products, digital codes, and taxable services subject to the tax levied in this subchapter except for food and food ingredients that are taxed under § 26-53-145.
(2) The tax shall be collected, reported, and paid in the same manner and at the same time as is prescribed by law for the collection, reporting, and payment of state compensating taxes.
(b)(1) In addition to the excise tax levied upon the privilege of storing, using, distributing, or consuming tangible personal property, specified digital products, a digital code, and taxable services within the state by this subchapter, there is levied an excise tax of one-half of one percent (0.5%) upon all tangible personal property, specified digital products, digital codes, and taxable services subject to the tax levied in this subchapter except for food and food ingredients that are taxed under § 26-53-145.
(2) The tax shall be collected, reported, and paid in the same manner and at the same time as is prescribed by law for the collection, reporting, and payment of Arkansas compensating taxes.
(c)(1) There is levied an additional excise tax of one-half of one percent (0.5%) upon all tangible personal property, specified digital products, digital codes, and taxable services subject to the tax levied by this subchapter except for food and food ingredients that are taxed under § 26-53-145.
(2) The tax shall be collected, reported, and pai
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-53-107
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 26-53-107. This identifies an authority to review, not proof of applicability.