The collection and administration of a gross receipts tax
collected for any town, city, or county by the Commissioner shall be collected
and administered in accordance with these rules
A. MAXIMUM TAX LIMITATION.
1. All local taxes shall be collected only on
the first $2,500.00 of gross receipts, gross proceeds, or sales price of a
single motor vehicle, aircraft, watercraft, modular home, manufactured home, or
mobile home.
a. The term "motor vehicle" means
a self-propelled vehicle registered for highway use.
b. The term "watercraft" is defined to mean a
boat, canoe, kayak, sailboat, party barge, raft, jet ski, houseboat, or
amphibious vehicle. Watercraft does not include a tug boat or barge.
2. Sellers should apply the
$2,500.00 cap on the sale of a single motor vehicle, aircraft, watercraft,
modular home, manufactured home, or mobile home. The purchase of additional
tangible personal property in conjunction with the above enumerated items are
eligible for the cap if the property is installed, affixed, or otherwise
becomes a part of the motor vehicle, aircraft, watercraft, modular home,
manufactured home, or mobile home prior to purchase.
Example: J.T. purchases a motorcycle. While at the dealer,
J.T. picks out a windshield, saddle bags, pipes, and a helmet. If the
windshield, saddle bags, and pipes are installed prior to the purchase, then
those items are eligible for the cap. Tax should be calculated on the helmet
separately.
3. A rebate of
local sales and use tax is available for certain qualifying purchases of
tangible personal property or a taxable service. (See Ark. Code Ann. § 26-52523
and GR-92.)
B.
DETERMINATION OF TAX DUE.
1. Motor Vehicles
and Trailers. The local sales tax levied by the city and county of the
purchaser's residence shall be due on the sale of a motor vehicle or
trailer.
2. Other Sales of Tangible
Personal Property and Services. Sales of tangible personal property and taxable
services are sourced in accordance with the sourcing rules provided in Ark.
Code Ann. §§
26-52-521,
26-52-522, and GR-76.
C. DIRECT PAY PERMIT HOLDERS. A
direct pay permit holder that makes taxable purchases of tangible personal
property and services shall report and pay local sales or use tax on those
purchases. The local tax shall be calculated pursuant to the sourcing rules
provided in Ark. Code Ann. §§
26-52-521,
26-52-522, and GR-76.
