Avalara Taxrates > Blog > Sales Tax News > Arkansas to Exempt Sand for Oil Wells - Avalara

Arkansas to Exempt Sand for Oil Wells


 An Arkansas oil well.

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.”

His veto was overridden.

How does your business handle sales tax exemptions?

photo credit: Farther Along via photopin cc


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.