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26-53-149. Partial replacement and repair of certain machinery and equipment — Definitions.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-53-149. Partial replacement and repair of certain machinery and equipment — Definitions.
(a) The taxes levied under §§ 26-53-106 and 26-53-107 on the privilege of storing, using, distributing, or consuming the following within this state are subject to a refund as provided in this section:
(1) Machinery and equipment purchased to modify, replace, or repair, either in whole or in part, existing machinery or equipment used directly in producing, manufacturing, fabricating, assembling, processing, finishing, or packaging articles of commerce at a manufacturing or processing plant or facility in this state;
(2) Service relating to the initial installation, alteration, addition, cleaning, refinishing, replacement, or repair of machinery or equipment described in subdivision (a)(1) of this section; and
(3) Machinery and equipment purchased to modify, replace, or repair, either in whole or in part, existing molds and dies used directly in producing, manufacturing, fabricating, assembling, processing, finishing, or packaging articles of commerce at a manufacturing or processing plant or facility in this state.
(b)(1) Beginning July 1, 2014, the taxes levied under §§ 26-53-106 and 26-53-107 that are subject to a refund under this section are the taxes in excess of four and seven-eighths percent (4.875%).
(2) The taxes levied under §§ 26-53-106 and 26-53-107 that are subject to a refund under this section are the taxes in excess of the following rates:
(A) Beginning July 1, 2018, three and seven-eighths percent (3.875%);
(B) Beginning July 1, 2019, two and seven-eighths percent (2.875%);
(C) Beginning July 1, 2020, one and seven-eighths percent (1.875%); and
(D) Beginning July 1, 2021, seven-eighths percent (0.875%).
(3) Beginning July 1, 2022, purchases
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-53-149
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:26-53-149
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: e4f69f46774796dcb7d0fdda01b3555bbb5bc58d03ec94c529fdd3eaafafa9ab
Source location: content.xml paragraph 22186
Stored source content
26-53-149. Partial replacement and repair of certain machinery and equipment — Definitions.
(a) The taxes levied under §§ 26-53-106 and 26-53-107 on the privilege of storing, using, distributing, or consuming the following within this state are subject to a refund as provided in this section:
(1) Machinery and equipment purchased to modify, replace, or repair, either in whole or in part, existing machinery or equipment used directly in producing, manufacturing, fabricating, assembling, processing, finishing, or packaging articles of commerce at a manufacturing or processing plant or facility in this state;
(2) Service relating to the initial installation, alteration, addition, cleaning, refinishing, replacement, or repair of machinery or equipment described in subdivision (a)(1) of this section; and
(3) Machinery and equipment purchased to modify, replace, or repair, either in whole or in part, existing molds and dies used directly in producing, manufacturing, fabricating, assembling, processing, finishing, or packaging articles of commerce at a manufacturing or processing plant or facility in this state.
(b)(1) Beginning July 1, 2014, the taxes levied under §§ 26-53-106 and 26-53-107 that are subject to a refund under this section are the taxes in excess of four and seven-eighths percent (4.875%).
(2) The taxes levied under §§ 26-53-106 and 26-53-107 that are subject to a refund under this section are the taxes in excess of the following rates:
(A) Beginning July 1, 2018, three and seven-eighths percent (3.875%);
(B) Beginning July 1, 2019, two and seven-eighths percent (2.875%);
(C) Beginning July 1, 2020, one and seven-eighths percent (1.875%); and
(D) Beginning July 1, 2021, seven-eighths percent (0.875%).
(3) Beginning July 1, 2022, purchases qualifying for the tax refund under this section are exempt from the taxes levied under this chapter.
(c) The excise tax of one-eighth of one percent (0.125%) levied in Arkansas Constitution, Amendment 75, and the temporary excise tax of one-half percent (0.5%) levied in Arkansas Constitution, Amendment 91, are not subject to refund under this section.
(d) As used in this section:
(1) “Manufacturing” or “processing” means the same as defined under § 26-53-114(b) and includes activities described in subsection (a) of this section, both independently and collectively; and
(2) “Used directly” means the same as defined under § 26-53-114(c).
(e) All existing excise tax exemptions, including without limitation exemptions under §§ 26-52-402 and 26-53-114, remain in full force and effect and are not limited by this section.
(f) A taxpayer may claim the benefit of the tax refund under this section only by using one (1) of the following methods:
(1)(A) Both:
(i) Obtaining a direct pay or a limited direct pay sales and use tax permit from the Department of Finance and Administration; and
(ii) Self-refunding:
(a) At the time the taxpayer files his or her original sales and use tax report; or
(b) By later filing an amended sales or use tax report with the department.
(B) The statutes of limitation stated in § 26-18-306 apply to claims made under this subdivision (f)(1).
(C) Interest shall not accrue or be paid on a refund claimed under this subdivision (f)(1); or
(2)(A) Beginning July 1, 2018, for a taxpayer that does not hold a direct pay or limited direct pay permit, holds an active Arkansas sales and use tax permit, and files sales and use tax reports with the department, filing a claim for the credit or rebate with the department.
(B)(i) The credit or rebate authorized under this subdivision (f)(2) shall be obtained only by offsetting the amount of the claimed credit or rebate against the state tax to be remitted with the taxpayer's sales and use tax reports.
(ii) If the total amount of the credit or rebate authorized under this subdivision (f)(2) is greater than the amount of the state tax to be remitted with the taxpayer's sales and use tax reports, the taxpayer is entitled to a refund of the difference between the amount of the tax owed and the amount of the credit or rebate authorized under this subdivision (f)(2).
(C) A taxpayer claiming a credit or rebate under this subdivision (f)(2) shall electronically file all sales and use tax reports.
(D) A claim for credit or rebate under this subdivision (f)(2) shall not be paid for a claim filed more than one (1) year following the date of the qualifying purchase or more than one (1) year following the date of payment, whichever is later.
(E) Interest shall not accrue or be paid on an amount subject to a claim for a credit or rebate under this subdivision (f)(2).
(g) A claim for a credit or rebate shall not be paid under subdivision (f)(2) of this section for a purchase made before July 1, 2018.
(h) A taxpayer shall not claim the benefit of the refund under this section by filing a verified claim for refund with the department.
(i) The following provisions of the Arkansas Tax Procedure Act, § 26-18-101 et seq., apply to claims for a refund under this section:
(1) The time limitations that apply to claims for a refund of an overpayment of state tax; and
(2) The procedures that apply to the disallowance or proposed disallowance of claims for a refund.
Cross-references
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Arkansas Code — all titles (historical 2020) · legal_authorities
26-52-402. Certain machinery and equipment — Definitions.
(a) There is specifically exempted from the tax imposed by this chapter the following:
(1)(A) Gross receipts or gross proceeds derived from the sale of tangible personal property consisting of machinery and equipment used directly in producing, manufacturing, fabricating, assembling, processing, finishing, or packaging of articles of commerce at manufacturing or processing plants or facilities in the State of Arkansas, including facilities and plants for manufacturing of feed, processing of poultry or eggs, or both, and livestock, and the hatching of poultry, but only to the extent that the machinery and equipment is purchased and used for the purposes set forth in this subdivision (a)(1).
(B) The machinery and equipment will be exempt under this subdivision (a)(1) if it is purchased and used to create new manufacturing or processing plants or facilities within this state or to expand existing manufacturing or processing plants or facilities within this state;
(2)(A) Machinery purchased to replace existing machinery and used directly in producing, manufacturing, fabricating, assembling, processing, finishing, or packaging of articles of commerce at manufacturing or processing plants or facilities in this state will be exempt under this subdivision (a)(2).
(B)(i) As used in subdivision (a)(2)(A) of this section, “machinery purchased to replace existing machinery” means that substantially all of the machinery and equipment required to perform an essential function is physically replaced with new machinery.
(ii) As used in subdivision (a)(2)(B)(i) of this section, “substantially” is intended to exclude routine repairs and maintenance and partial replacements that do not improve efficiency or extend the u
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-52-402
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 26-52-402. This identifies an authority to review, not proof of applicability.
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.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-53-114. Exemption for certain machinery and equipment — Definitions.
(a) There is specifically exempted from the taxes levied in this subchapter:
(1)(A) Only to the extent that the machinery and equipment is purchased and used for the purposes set forth in this subdivision (a)(1), machinery and equipment used directly in the producing, manufacturing, fabricating, assembling, processing, finishing, or packaging of articles of commerce at manufacturing or processing plants or facilities in the State of Arkansas, including facilities and plants for manufacturing feed, processing of poultry and eggs and livestock, and the hatching of poultry.
(B) The machinery and equipment will be exempt under this section if it is purchased and used to create new manufacturing or processing plants or facilities within this state or to expand existing manufacturing or processing plants or facilities within this state;
(2)(A) Machinery purchased to replace existing machinery in its entirety and used directly in producing, manufacturing, fabricating, assembling, processing, finishing, or packaging of articles of commerce at manufacturing or processing plants or facilities in this state will be exempt under this section.
(B)(i) As used in subdivision (a)(2)(A) of this section, “machinery purchased to replace existing machinery” means that substantially all of the machinery and equipment required to perform an essential function is physically replaced with new machinery.
(ii) As used in subdivision (a)(2)(B)(i) of this section, “substantially” is intended to exclude routine repairs and maintenance and partial replacements that do not improve efficiency or extend the useful life of the entire machine, but it is not intended to mean that foundations and minor components which can
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-53-114
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 26-53-114. This identifies an authority to review, not proof of applicability.