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Arkansas Farm Utility Exemption

  • Jan 8, 2015 | Gail Cole

 Chicken farmers may be eligible for Arkansas' farm utility exemption.

Since January 1, 2014, Arkansas law has provided an exemption from state and local sales taxes for electricity, natural gas, and liquefied petroleum gas used by qualifying agricultural structures, and for qualifying aquaculture and horticulture equipment. Information about this exemption is included in the most recent Arkansas State Revenue Tax Quarterly Newsletter.

In order for the exemption to apply, the utility must be separately metered and it must only be used for the purpose of the exemption.

Qualifying agricultural structures:

  • "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.
  • A greenhouse used for commercial production.

Qualifying aquaculture or horticulture equipment:

  • "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.
  • A holding and sorting tank used in a commercial aquaculture operation."

Additional information, including definitions of horticulture and aquaculture, is available on this Farm Utility Exemption Notice.

Sales tax exemptions can complicate sales tax compliance. Implementing automated sales tax software as a service facilitates compliance. Learn more.

photo credit: BinaryApe 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.