Arkansas to Exempt Sand for Oil Wells
- Mar 27, 2014 | Gail Cole
Beginning July 1, 2014, Arkansas will allow an exemption from gross receipts tax for “sand and other proppants used to complete a new oil or gas well or to recomplete, redrill, or expand an existing oil or gas well.”
The exemption is part of Arkansas Department of Finance and Administration engrossed as Act 300. The exemption does not have the support of Governor Mike Beebe, who invoked the line-item veto in an attempt to stop it from becoming law. According to the governor’s veto letter:
“Substantive changes to Arkansas law that have no relation to appropriations… should rarely be considered during fiscal sessions. If they are to be considered at all, it should be done through the process the people established in our Constitution, and not through ‘special language’ amendments to unrelated appropriation bills.”
How does your business handle sales tax exemptions?