006.05.212-GR-37. EXEMPTIONS FROM TAX - HOSPITALS AND SANITARIUMS:
AR ADC 006.05.212-GR-37Arkansas Administrative Code
Ark. Admin. Code 006.05.212-GR-37
006.05.212-GR-37. EXEMPTIONS FROM TAX - HOSPITALS AND SANITARIUMS:
B. The gross receipts or gross proceeds derived from the sale of tangible personal property or services to any non-profit organization whose sole purpose is to provide temporary housing to the family members of patients in a hospital or sanitarium are exempt from the tax except for the sale of materials used in the original construction, extension or repair of the temporary housing.
C. The gross receipts or gross proceeds derived from the sale of tangible personal property or services to any other hospital or sanitarium operated for charitable and non-profit purposes are exempt from the tax except the sales of materials used in the original construction, extension or repair of such a hospital or sanitarium shall not be exempt from the tax.
2. “Repair” means substantial modifications or substantial work upon the hospital or sanitarium building itself which are necessary because of some extraordinary occurrence such as fire, earthquake, flood, explosion, or structural failure. Repair does not include the replacement of items or work performed on the hospital or sanitarium building as a result of ordinary wear and tear, depreciation, maintenance, or vandalism. Repair does not include remodeling or refurbishing of any part of the existing hospital or sanitarium facility not necessitated by damage.
F. Materials purchased by the hospital (except for state-owned hospitals) for repairs are subject to sales tax; however, if a contractor purchases repair materials for use in completing a contract with the hospital, the contractor must pay sales tax on all purchases. Materials purchased by a charitable, non-profit, non-state owned hospital for maintenance or routine replacement are exempt.
G. An entity that is affiliated with a hospital, but is a separate legal entity from the hospital and does not itself qualify as a “hospital” or “sanitarium,” may not purchase items exempt from tax if the entity's purchases are paid by the separate entity. For example, a clinic that is a subsidiary or affiliate of a hospital, but that provides “out-patient” services only or otherwise fails to qualify as a hospital, is not exempt from tax on purchases of items paid with the subsidiary or affiliates' own funds.
Credits
AUTHORITY: Ark. Code Ann. § 26-52-401(21)
Current with amendments received through May 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.05.212-GR-37, AR ADC 006.05.212-GR-37
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