INCOME RESIDENTIAL UTILITY CUSTOMER TAX EXEMPTION.
a. "Income" means gross income less
deductions allowed by law for expenses. It shall also include alimony, support
money, cash public assistance and relief, the gross amount of any pension or
annuity (including all monetary retirement benefits from whatever source
derived, including but not limited to railroad retirement benefits, all
payments received under the Federal Social Security Act, and veterans'
disability pensions), all dividends and interest from whatever source derived
not included in gross income, worker's compensation, and the gross amount of
"loss of time insurance." Provided, however, the term "income" shall not
include gifts from nongovernmental sources, or surplus food or other relief in
kind supplied by a governmental agency. In the case of a claimant who is a
World War I veteran or the widow of such veteran, the term "income" shall not
include federal and/or state retirement, pension, disability, railroad
retirement or social security benefits.
b. "Household income" means the combined
income received by members of a household during a calendar year.
c. "Household" means an individual and, if
applicable, his or her spouse.
"Electric utility" means any electric utility, cooperative corporation created
or existing under the authority of Ark. Code Ann. §
seq. or a municipally-owned electric utility.
The sale of the first 500 kilowatt hours of electricity per
month to each residential customer whose household income does not exceed
$12,000.00 per year shall be exempt from the gross receipts tax and all other
state excise taxes which would otherwise be levied thereon.
b. The total franchise taxes billed to each
residential customer whose household income does not exceed $12,000.00 per year
shall be exempt from the gross receipts tax and all other state excise taxes
which would otherwise be levied thereon.
3. The exemption provided herein shall apply
to sales by all electric utilities operating in the State of
4. Customers qualifying
for the exemption provided herein shall notify the electric utility providing
service to them of their intent to claim the exemption on forms provided by the
Commissioner. The exemption must be claimed by March 1 of the year following
the year in which the customer's income did not exceed $12,000.00. Once the
exemption is claimed, no further application is required. The exemption
continues from year to year until the customer becomes disqualified.
5. A customer becomes disqualified for the
exemption when the customer's household income for a calendar year exceeds
$12,000.00. The customer must notify the electric utility of their
ineligibility on or before March 1 of the year following the year during which
the household income exceeded $12,000.00. This notification must be made on
forms provided by the Commissioner.
6. Any customer who fails to notify the
electric utility of their ineligibility and continues to benefit from the tax
exemption shall be liable for the amount of the tax exemption received after
March 1 of the year during which notice of ineligibility should have been
7. Customers who change
electric utilities must notify the new electric utility of their intent to
claim the exemption provided herein by submitting to the new utility another
claim form provided by the Commissioner.
8. When submitting the claim form for the
purpose of claiming this exemption, the income listed shall be that which was
received by the customer's household during the preceding calendar
9. The claim forms may be
obtained directly from the Commissioner upon request, and supplies of the forms
will also be furnished to the electric utility companies. The electric utility
companies are authorized to make copies of the forms to furnish to their
10. Every electric
utility shall, on each sales tax report which it submits to the Department,
indicate the amount of exemptions provided its customers hereunder in the space
designated "Other Legal Deductions" on such sales tax report.
11. Every electric utility shall keep and
maintain all claim forms submitted by customers claiming the exemption provided
herein and shall make the same available for examination by the Commissioner.
Such records shall be preserved for a period of three (3) years and shall be
open to examination by the Commissioner at any reasonable time.