A. The gross receipts or gross proceeds
derived from the sale of food or food ingredients or prepared food to
governmental agencies for free distribution to any public, penal, or
eleemosynary institution or for free distribution to poor and needy individuals
are exempt from the tax. The gross receipts or gross proceeds derived from the
sale of food or food ingredients to nonprofit agencies organized under the
Arkansas Nonprofit Corporation Act, §
4-28-201, et seq., for free
distribution to the poor and needy are exempt from gross receipts
1. "Governmental agencies" mean any agency or
department of the United States, the State of Arkansas, counties, cities,
towns, or school districts. Government agencies do not include a private
non-profit organization funded wholly or in part by public monies.
2. "Public institution" means any institution
operated, or managed by a governmental agency, or supported in whole or
substantial part by public funds, for the benefit of the economically
institution" means any charitable and non-profit organization which is operated
primarily for the benefit of the economically disadvantaged.
4. "Free distribution" means that no
consideration is required prior to, subsequent to, or at the time of
5. "Poor and needy"
means individuals who are economically disadvantaged (e.g., individuals who
receive little or no income in any form or fashion).