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Arkansas: Disaster Response Triggers Sales Tax Exemptions

  • Apr 9, 2015 | Gail Cole

 Arkansas: tax exemptions to aid in disaster recovery.

Businesses that travel to Arkansas from other states to help respond to disasters are now exempt from certain taxes. The exemptions apply only during the disaster response period.

Senate Bill 925 (Act 864) establishes the Business Rapid Response to State Disasters Facilitation Act. It stipulates that businesses operating in Arkansas “solely for the purpose of helping the state recover from a disaster or emergency … should not be burdened by regulatory requirements and taxes that would normally apply to the activities that the out-of-state businesses and their employees are conducting in the state.”

Such businesses, therefore, are exempt from the following:

  • Registering, filing and remitting state or local taxes
    • State and local income taxes
    • State and local sales and use taxes on property temporarily brought into the state for use during the disaster response period and subsequently removed from the state
  • Complying with state licensing, certification, and registration requirements

However, out-of-state businesses and out-of-state employees are required to pay the following state and local transaction taxes:

  • Motor fuel taxes
  • Distillate special fuel taxes
  • Sales and use taxes on materials and services consumed or used in the state
  • Hotel taxes
  • Car rental taxes and fees
  • Any other tax or fee that applies to goods or services that the out-of-state business or out-of-state employee purchases for use or consumption in this state during the disaster response period, unless the tax or fee is otherwise exempt during the disaster response period.

Additional details are available in the text of the Act.

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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.