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.
