A. GENERAL
INFORMATION
1. Sales of new and used mobile
homes and house trailers are subject to sales or use tax. If gross receipts,
sales, compensating (use) or other similar tax has been legally paid by the
taxpayer to another state, then the taxpayer is entitled to credit for that
tax. The taxpayer shall provide sufficient proof of such tax payment before
credit is allowed.
2. If the total
gross receipts or gross proceeds for the sale of a new or used mobile home or
trailer, other than a manufactured home, is less than $2,000.00, then sales or
use tax is not due.
3. If the total
gross receipts or gross proceeds for the sale of a new or used manufactured
home is less than $10,000.00, then sales or use tax is not due.
B. DEFINITIONS
1. A "manufactured home" is defined as a
structure, transportable in one or more sections, which, in the traveling mode,
is eight (8) feet or more in width, or forty (40) feet more in length, or when
erected on site, is three hundred and twenty (320) or more square feet, and
which is built on a permanent chassis and designed to be used as a dwelling
with or without a permanent foundation when connected to the required
utilities. This term also includes any structure which meets all other
requirements except the size requirement and for which the manufacturer files a
certification required by the Secretary of the Department of Housing and Urban
Development.
2. For purposes of
this regulation, the terms "mobile home" and "house trailer" mean a
transportable structure other than a manufactured home which is intended for
use as a dwelling or place of business, which may be licensed under Ark. Code
Ann. §
27-14-1601
et seq. and which is excepted from licensing and registration by Ark. Code Ann.
§
27-14-703.
3. The term "gross receipts" or "gross
proceeds" means the total amount of consideration for the sale of the mobile
home, trailer or manufactured home whether the consideration is in money or
otherwise, without any deduction therefor on account of the cost of the
property sold, labor service performed, interest paid by the retailer, losses
or any expenses whatsoever. The term "gross receipts" or "gross proceeds"
includes the value of any property taken in lieu of or in addition to money as
consideration for a sale.
C. CALCULATION OF TAX DUE
If the seller takes a used mobile home, trailer, or manufactured home
in trade as credit or part payment of a sale of a new or used manufactured
home, mobile home or house trailer, tax shall be paid on the difference between
the total gross receipts or gross proceeds received for the mobile home or
trailer and any credit given for the traded-in manufactured home, mobile home
or house trailer. No trade-in credit will be allowed if an item other than a
used manufactured home, mobile home or house trailer is taken in trade.
D. SALES TAX REPORTS
Every seller of mobile homes or house trailers making sales from an
established business is required to obtain a sales tax permit and to collect
tax from the purchaser. The seller is to report the sale as any other taxpayer
subject to the Arkansas Gross Receipts Tax laws. The seller is to provide the
Commissioner with the following information along with the seller's regular
sales tax report:
1. Purchaser's name
and address.
2. Make, model, serial
number and gross sales price of each mobile home or house trailer
sold.
3. Make, model, serial number
and value assigned to any mobile home or house trailer taken in trade as part
payment on the sale of a new or used mobile home or house trailer.
4. Amount of state and local tax collected
from the purchaser.
5. Copies of
invoices, sales tickets or bills of sale concerning each mobile home or house
trailer sold and taken in trade. (If the invoice, sales ticket or bill of sale
contains the information required by 1, 2, 3 and 4, then only the invoices,
sales tickets or bills of sale must accompany the sales tax report.)
E. RECORDS
The seller shall retain records reflecting the total gross receipts or
gross proceeds received and a description of each mobile home or house trailer
sold along with the value and description of each mobile home or house trailer
taken in trade. If the seller's records are inadequate or incomplete, the
Commissioner may utilize any of the following for purposes of determining sales
tax liability:
1. Affidavit signed by
the seller and purchaser attesting to the gross receipts or trade-in value of
the mobile home or house trailer.
2. Mobile home or house trailer valuation
schedules prepared by the Assessment Coordination Division of the Arkansas
Public Service Commission.
3. Any
national trade publication generally accepted by mobile home and house trailer
dealers as accurately reflecting current mobile home or house trailer market
value.
F. EFFECTIVE
DATES
For purposes of determining whether a sale occurred before the
effective date of Act 3 of 1991, the date on the bill of sale, contract, or
other documents provided by the taxpayer controls.
