1. "Advertising agency" means a business
which provides comprehensive, professional advertising services including, but
not limited to, artwork, concepting, designing and any other creative services
necessary to create, plan and implement an advertising scheme.
2. "Advertising services" mean those
professional services provided by an advertising agency when designing and
implementing an advertising campaign for a customer.
Advertising services shall not be subject to gross receipts tax.
2. Advertising agencies must pay the Arkansas
gross receipts or use tax on all property and taxable services which they
purchase or consume in providing advertising services.
3. The sale of caps, pencils, mugs, shirts or
any other item of tangible personal property which contains the name, logo,
picture or other message designed by the purchaser is subject to the gross
receipts tax if the sale is made by a retail business engaged in the sale of