A. SERVICES SUBJECT TO THE TAX. Arkansas
state and local gross receipts (sales) tax shall apply to the gross proceeds
derived from the performance of pest control services. Tax should be collected
on the entire gross receipts derived from the fee charged for the performance
of pest control services, without any deduction for costs, fees, labor services
performed, interest, losses, or any expenses whatsoever. Fees paid by a service
provider to the state, a city, county, or other governmental subdivision, which
are passed on to the customer are part of the gross receipts for providing pest
a. Any insect, rodent, nematode, or fungus;
b. Any other form of terrestrial
or aquatic plant or animal life or virus, bacteria, or other microorganism
(except viruses, bacteria, or other microorganisms on or in living man or other
living animals) which is injurious to health or the environment.
2. "Pest control service" means
any person who for compensation gives advice or engages in work, including
inspection, to prevent, control, or repel pests as defined herein. Such
services shall include, but shall not be limited to, the prevention, control or
repelling of arthropods, mammals, birds, reptiles, wood-damaging or
wood-destroying insects, wood-damaging or wood-destroying fungi, any organisms
that may invade or infest homes, other buildings, or similar structures and
their adjacent grounds as well as arthropods, mammals, birds, reptiles and
plant diseases that may invade, infest, or infect shade trees, shrubs, lawns,
RESPONSIBLE FOR COLLECTING AND REMITTING TAX. The tax shall be collected and
remitted by the seller of the pest control services on the total gross receipts
received by a pest control service provider, including any amounts received for
service contracts, termite contracts, pest control contracts, or any other
contract that provides for inspection, prevention, control, or repelling of
SERVICES EXEMPT FROM TAX.
The tax shall not apply to sales of pest control services performed in the
agricultural production of food or fiber as a business (including the pest
control treatment of livestock and poultry) or the agricultural production of
grass sod or nursery products as a business.
1. Agricultural purposes means any purpose
directly connected with the operation of any farm, including poultry and fish
farms, ranches, orchards or any other operation by which products are grown on
the land in sufficient quantity to constitute a commercial operation.
Agricultural purposes also means the production of flowering, ornamental, or
vegetable plants by a grower in a commercial greenhouse or at another
2. The exemption is not
intended to cover the sale of pesticides for use in private family vegetable
gardens or in protecting ornamental plants used for landscape
3. The tax on pest
control services is not intended to apply to the performance of either
commercial or residential weed control services. However, weed control services
may be taxable as a lawn care service.
E. CHEMICALS AND BUILDING MATERIALS.
Chemicals applied to the customer's premises and used for the treatment,
control, or repelling of pests may be purchased tax free as a sale-for-resale
by the pest control service provider. Building materials that are incorporated
into the customer's premises in the course of repairing damage caused by
termites may be purchased tax free as a sale-for-resale by the pest control
service provider. All items purchased for use or consumption in providing pest
control services are subject to tax.