Arkansas Gross Receipts Tax Regulation GR-13 is hereby amended
to read as follows:
"SPECIAL RULES FOR NEW AND USED MOTOR VEHICLE, TRAILER AND
1. New and used
car dealers shall be entitled to purchase parts and accessories exempt as sales
for resale if the dealer is in the business of using the parts for
reconditioning or rebuilding dealer-owned motor vehicles for subsequent sale.
The dealer must hold a retail sales tax permit. The separate sale of parts or
accessories by the dealer to consumers is subject to tax and shall be collected
and reported by the dealer.
and used car dealers shall be entitled to purchase services performed on
dealer-owned vehicles exempt as a sale for resale if the dealer is purchasing
the services solely and exclusively to prepare the vehicle for sale and the
service enhances the value of the vehicle. For example, the repairing of
windshields, dents, scratches, radiators, engines and car detailing would be
exempt as a sale for resale if the service enhanced the value of the vehicle.
The sale for resale exemption is available only for services performed on
vehicles held for resale. All other services performed for the dealership will
3. Car dealers
which are purchasing parts, accessories or services as a sale for resale must
satisfy the requirements found in Regulation 53."