006.05.212-GR-3. DEFINITIONS:
AR ADC 006.05.212-GR-3Arkansas Administrative Code
Ark. Admin. Code 006.05.212-GR-3
006.05.212-GR-3. DEFINITIONS:
For purposes of these rules, unless otherwise required by their context, the following definitions apply:
C. CONSUMER. “Consumer” is synonymous with “user”, “customer”, or “purchaser” and means the person to whom a taxable sale is made, or to whom taxable services are furnished. Contractors are deemed to be the consumers of all tangible personal property or taxable services purchased by them in the performance of a contract. See the definition of “contractor” in this rule. Also, see GR 9.17 regarding the purchase of materials by contractors performing taxable services.
D. CONTRACTOR. “Contractor” means any person who contracts or undertakes to construct, manage or supervise the construction, erection or substantial modification of any building or other improvement or structure affixed to real property. Persons who construct items of tangible personal property are not contractors. (See GR-21.)
F. DOING BUSINESS OR ENGAGING IN BUSINESS. “Doing Business” is synonymous with “engaging in business” and means any and all local activity regularly and persistently pursued by a seller or seller's agents, employees, or representatives, with the object of gain, profit, or advantage, and which results in a sale, delivery, and/or the transfer of the possession of any tangible personal property by the seller to the consumer, at or from any point in Arkansas, whether from warehouse, store, office, storage point, rolling store, motor vehicle, delivery conveyance, or by any method or device under the control of seller effecting such local delivery, without regard to the terms of sale with respect to point of acceptance of the order, point of payment, or any other condition. Doing business, as set out herein, is equally applicable to sellers of services which are subject to the gross receipts tax.
1. “Gross receipts” or “gross proceeds” is synonymous with “sales price” and means the total amount of consideration, including cash, credit, property, and services, for which tangible personal property or services are sold, leased, or rented, valued in money, whether received in money or otherwise. Sales price includes consideration received by the seller from third parties as follows:
(1) The purchaser presents a coupon, certificate, or other documentation to the seller to claim a price reduction or discount where the coupon, certificate, or documentation is authorized, distributed, or granted by a third party with the understanding that the third party will reimburse any seller to whom the coupon, certificate, or documentation is presented;
e. The value of exempt tangible personal property given to the purchaser, if taxable and exempt tangible personal property have been bundled together and sold by the seller as a single product or piece of merchandise (see the definition of “bundled transaction” in this rule and GR-93 for the treatment of bundled transactions); and
I. MACHINE. “Machine” means any device consisting of two (2) or more resistant, relatively constrained parts, which, by a certain predetermined intermotion, may serve to transmit and modify force and motion so as to produce some given effect or to do some desired kind of work. The term “machinery” shall mean mechanical devices or combinations of mechanical powers and devices purchased and used to perform some function and produce a certain effect or result. Hand tools are not machinery. (See GR-55(F).)
J. PERSON. “Person” means any individual, partnership, limited liability company, limited liability partnership, corporation, estate, trust, fiduciary, or any other legal entity. Person includes the state and any county, city, municipality, school district, or any other political subdivision or combination acting as a unit, in the plural or singular number.
K. PREPARED FOOD. “Prepared food” means food sold in a heated state or heated by the seller; food consisting of two (2) or more food ingredients mixed or combined by the seller for sale as a single item; or food sold with an eating utensil provided by the seller. Prepared food does not include food that is only cut, repackaged, or pasteurized by the seller, or eggs, fish, meat, poultry, and foods containing these raw animal foods requiring cooking by the consumer to prevent food-borne illnesses as recommended by the U.S. Food and Drug Administration.
1. “Sale” means any transaction resulting in the transfer of either the title or possession, for a valuable consideration, of tangible personal property or taxable services regardless of the manner, method, instrumentality, or device by which such transfer is accomplished. Sale includes the exchange, barter, lease, or rental of tangible personal property or taxable services, or the sale, exchanging, or other disposition of admissions, dues, or fees to clubs, places of amusement, or recreational or athletic events or for the privilege of having access to or the use of amusement, athletic, or entertainment facilities.
3. In the case of leases or rentals of tangible personal property, including motor vehicles and trailers, for less than thirty (30) days, the tax shall be paid on the basis of rental or lease payments made to the lessor of such tangible personal property during the term of the lease or rental regardless of whether Arkansas gross receipts or compensating use tax was paid by the lessor at the time of the purchase of the tangible personal property. In the case of leases or rentals of tangible personal property, including motor vehicles and trailers, thirty (30) days or more, the tax shall be paid on the basis of rental or lease payments made to the lessor of such tangible personal property during the term of the lease or rental unless Arkansas gross receipts or compensating use tax was paid at the time of purchase of the tangible personal property. (See GR-20.)
4. A financing arrangement which only gives a lender a security interest in tangible personal property will not subject such lender to the tax, if, prior to such financing arrangement, either the Arkansas gross receipts or compensating use tax has been paid on the purchase price of the tangible personal property by one of the parties to the financing arrangement.
S. TRANSPORTATION EQUIPMENT. “Transportation equipment” means any of the following:
2. Trucks and truck-tractors with a Gross Vehicle Weight Rating of 10,001 pounds or greater, trailers, semi-trailers, or passenger buses that are (i) registered through the International Registration Plan; and (ii) operated under authority of a carrier authorized and certificated by the U.S. Department of Transportation or another federal authority to engage in the carriage of persons or property in interstate commerce;
Credits
AUTHORITY: Ark. Code Ann. §§ 26-52-103; 26-52-317; 26-52-521
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.05.212-GR-3, AR ADC 006.05.212-GR-3
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