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Arkansas Farm Utility Exemption

  • Sep 27, 2013 | Gail Cole

 Arkansas catfish farmers will soon be able to take advantage of an exemption on utilities.

Beginning January 1, 2014, Arkansas will provide an exemption from state and local sales taxes for farm utilities.

The exemption applies to qualifying agricultural structures or aquaculture and horticulture equipment. Only separately metered utilities are eligible. Farmers interested in the exemption must provide a completed exemption certificate (available from the Arkansas Department of Finance and Administration) to the utility supplier.

Qualifying agricultural structures include:

  • "A poultry or livestock facility used for commercial production, including without limitation a broiler or turkey grow-out house, laying house, hatching unit, nursery unit, breeding house, farrowing unit, and feed-out house;
  • A cattle or dairy facility, including without limitation a milking parlor, milk collection unit, and refrigeration unit; and
  • A greenhouse used for commercial production."

Horticulture is the initial production and cultivation of florists, fruits, shrubs, trees, tree nuts, vegetables and vines. The exemption applies unless these items are cultivated to be sold at a retail or wholesale facility.

Aquaculture is the active cultivation of domesticated fish spawned, grown, managed, harvested and marketed. To be eligible for the exemption, aquaculture must take place in "[w]aters that are confined within a pond, tank, or lake that is situated entirely on the premises of a single owner and that, except under abnormal flood conditions, are in no way connected by water or with any other flowing stream or body of water, or body of water not situated on the premises of the owner."

Qualifying equipment used for aquaculture or horticulture includes:

  • "A cooling unit, collection unit, or irrigation equipment used in a commercial horticulture operation;
  • Equipment used to pump and aerate a pond used in a commercial aquaculture operation; and
  • A holding and sorting tank used in a commercial aquaculture operation."

Read the Act here.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.