A.
The gross receipts or gross proceeds derived from sales of motor fuel or
special motor fuel are exempt from the tax if the motor fuel tax or special
motor fuel tax has been paid to the State of Arkansas. The gross receipts or
gross proceeds derived from sales of fuel oil, motor oil and lubricants are
subject to tax.
B. The gross
receipts or gross proceeds derived from sales of unprocessed crude oil are
exempt from the tax.
C. The gross
receipts or gross proceeds derived from the sale of motor fuel or special motor
fuel to the owners or operators of motor buses operated on designated streets
according to regular schedule, under municipal franchise and which are used for
municipal transportation purposes are exempt from the tax.
D. The gross receipts or gross proceeds
derived from sales of special fuel or petroleum products for consumption by
vessels, barges, other commercial watercraft and railroads are exempt from the
tax. For purposes of this subsection the term "vessel" shall mean and describe
any motor driven watercraft used for commercial purposes for the transportation
of tangible property or persons on the rivers, lakes and navigable streams of
Arkansas.
E. That portion of the
gross receipts or gross proceeds derived from the sale of automobile parts
which constitute "core charges" which are received for the purpose of securing
a trade-in for the article purchased is exempt from the tax except that when
the article is not traded in, then the tax is due on the "core charge".
Example 1: If a customer purchases a new battery for $40.00
plus a core charge of $8.00 and returns a used core for $8.00, tax would be due
only on the $40.00 purchase price because the core was traded in or
returned.
Example 2: If a customer purchases a new battery for $40.00
plus a core charge of $8.00 with no core traded in, tax would be due on the
total consideration of $48.00.
