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006.05.204-5. DEVELOPERS AND CONTRACTORS.

AR ADC 006.05.204-5Arkansas Administrative Code

West's Arkansas Administrative Code
Title 006. Department of Finance and Administration
Division 05. Division of Revenues
Rule 204. 1993-11 Enterprise Zone Act of 1993
Ark. Admin. Code 006.05.204-5
006.05.204-5. DEVELOPERS AND CONTRACTORS.
Currentness
(a) Developers building a structure for lease to an approved enterprise zone business and contractors performing work for an approved enterprise zone business may be permitted to receive a sales and use tax refund on eligible purchases directly from the state only when the approved enterprise zone business requests the Department of Finance and Administration, Tax Credit/Special Refunds Section, in writing, that this be permitted and states the basis for this request. The 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; and
(2) All requirements of the Act and these regulations will be adhered to; and
(3) A notarized affidavit (Form EZP 1201) is presented to the Department of Finance and Administration, Revenue Division, from the contractor or developer stating the enterprise zone business will receive the benefit of the sales and use tax refunds by having the cost of construction or lease payments reduced by the amount of the tax refund; and
(4) A notarized affidavit (Form EZP 1301) is presented to the Department of Finance and Administration, Revenue Division from the approved enterprise zone business waiving the right to claim a refund of sales and use taxes, and passing on the right to claim refunds to the contractor or developer. The affidavit must state that the enterprise zone business acknowledges that if the enterprise zone business fails to comply with the conditions contained in Section 2(b) of this regulation, that business will be liable for the payment of all sales and use taxes which were refunded to contractors and developers under this section, plus penalty and interest.
(b) An approved enterprise zone business may receive a sales and use tax refund on eligible purchases made by a contractor or developer performing work or building a structure for lease or sale to the approved enterprise zone business provided the enterprise zone business submits to the Department of Finance and Administration, Tax Credits/Special Refunds Section:
(1) A notarized Contractor's/Developer's Waiver of Refund Form (EZP form 1101) completed by the contractor or developer waiving any and all rights to claim a refund of sales and use taxes; and
(2) An Enterprise Zone Business Sales and Use Tax Refund Request Form (EZP 1001), and a Schedule A listing the qualified enterprise zone purchases; and
(3) All other requirements of the Act and this regulation are adhered to.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.05.204-5, AR ADC 006.05.204-5
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