Home Table of Contents


AR ADC 006.05.202-4Arkansas Administrative Code

West's Arkansas Administrative Code
Title 006. Department of Finance and Administration
Division 05. Division of Revenues
Rule 202. 1989-1 Gross Receipts and Use Tax/Enterprise Zones
Ark. Admin. Code 006.05.202-4
(a) Use of Arkansas Manufacturers and Suppliers - Act 462 of 1989 requires enterprise zone businesses and their contractors to give preference and priority to Arkansas manufacturers, suppliers, contractors, and labor, except where not reasonably possible to do so without added expense or substantial inconvenience or sacrifice in operational efficiency. In considering application for tax refund, special attention will be given to those applicants agreeing to use, purchase, and contract for machinery, supplies and equipment manufactured in Arkansas, or, in the absence of Arkansas manufacturers, sold by residents, and to the use of Arkansas contractors and labor in the construction and operation of proposed facilities.
(b) Contractor Eligibility - A contractor is not eligible to receive the tax credit or refunds afforded by Act 462 of 1989, as amended, unless the contractor is the owner/developer creating permanent new jobs within an eligible zone, or meets the requirements of subsection (c) herein. In such circumstances, the contractor will be considered the business of record and must comply with the regulations as set forth in Section 1 of these regulations.
(c) Refund to Contractors - Contractors performing work on behalf of the business of record (which is eligible for tax credits or refunds) may be permitted to receive a sales tax refund on eligible purchases directly from the State only when the business of record requests to the Department of Finance and Administration, Revenue Division, in writing, that this be permitted and states the basis for this request. Department of Finance and Administration, Revenue Division, will authorize this procedure only when it is satisfied that:
(1) This arrangement is crucial to the success of the business project;
(2) All requirements of the Act and these regulations will be adhered to;
(3) A notarized affidavit (Form EZP 1200) is presented to the Department of Finance and Administration, Revenue Division, from the contractor stating that the cost of sales and use taxes has not, or will not be, passed on to the prime certified business;
(4) A notarized affidavit (Form EZP 1300) is presented to the Department of Finance and Administration, Revenue Division from the prime certified business waiving the right to claim a refund of sales and use taxes, and passing on the right to claim refunds to the contractor.
Current with amendments received through August 15, 2023. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.05.202-4, AR ADC 006.05.202-4
End of Document