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Arkansas: New Sales Tax Exemptions in 2014


 Arkansas: new exemptions in 2014.

The Department of Finance and Administration has published “What’s New for Sales Tax in 2014.” It lists, among other items, sales tax exemptions taking effect in 2014.

Exemptions effective January 1, 2014:

  • Utilities used for qualifying agricultural structures and qualifying aquaculture and horticulture equipment are exempt (Act 1441).

Exemptions effective July 1, 2014:

  • Utilities used for commercial grain drying and storage are exempt (Act 1401);
  • The first $50,000 of the purchase price of eligible purchases of timber harvesting equipment are exempt from state and local sales tax (Act 1402); and
  • Sales of dental appliances to or by a dentist, orthodontist, oral surgeon, maxillofacial surgeon, or endodontist are exempt from state and local sales tax (Act 1414).

Also taking effect July 1, 2014:

  • A partial refund of 1% of the state sales and use tax paid on the purchase of machinery and equipment or replacement parts purchased to modify, replace or repair existing manufacturing machinery and equipment. The refund also applies to certain labor costs (Act 1404);
  • A reduction of the state sales and use tax rate for electricity and natural gas used in manufacturing by certain eligible manufacturers. The reduced state rate is 1.625% beginning July 1, 2014, and 0.625% beginning July 1, 2015 (Act 1411).

Additional details are available in What’s New for Sales Tax in 2014.

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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.