006.05.98 Ark. Code R. § 016 - Amendment to Arkansas Gross Receipts Regulation GR-21 - "5. Carpenters"

These amendments to the Arkansas Gross Receipts Regulations are necessary in order to properly implement and enforce Ark. Code Ann. § 26-52-301 and are promulgated pursuant to the authority vested in the Director of the Department of Finance and Administration and the Commissioner of Revenue by Act 386 of 1941 and Act 401 of 1979.

Gross Receipts Regulation GR-21 (E) is amended to add a new paragraph to be paragraph 5 to read as follows:

5. Carpenters.

a. The installation, repair or replacement of custom or standard sized cabinets, shelves or other built in furnishings which become affixed to real property, are not taxable services. A person who builds cabinets, shelves or other built in furnishings either on-site or off-site and installs these items for the customer is a contractor. Contractors are required to either pay tax to their suppliers on their purchases of materials or self-assess tax on the purchase price of property withdrawn from their stock or inventory for use.

b. If the contractor installs prefabricated cabinets, shelves or other built in furnishings or a partially fabricated cabinet or other item from an inventory of prefabricated items he maintains, the contractor should self-assess tax as a withdrawal from inventory (stock) on the retail price of the cabinets, shelves or furnishings installed.

c. A cabinet maker who builds and sells either prefabricated or custom made cabinets, shelves or other furnishings and does not install these items is a retail seller and must collect and remit sales tax on the retail value of the item. "

Notes

006.05.98 Ark. Code R. § 016

7/8/1998