006.05.212-GR-50. EXEMPTIONS FROM TAX - SECONDHAND AND USED TANGIBLE PERSONAL PROPERTY:
AR ADC 006.05.212-GR-50Arkansas Administrative Code
Ark. Admin. Code 006.05.212-GR-50
006.05.212-GR-50. EXEMPTIONS FROM TAX - SECONDHAND AND USED TANGIBLE PERSONAL PROPERTY:
1. Used property was traded-in to and accepted by the seller of tangible personal property as part of the purchase price of newly acquired tangible personal property. It is necessary that the gross receipts tax be collected and paid on the total consideration for the sale of the newly acquired tangible personal property in order to qualify for the exemption unless the sale of the newly acquired tangible personal property was otherwise exempt under other provisions of the Arkansas Gross Receipts Act; and
Example: Seller of boats sells a new boat to a customer. The customer trades in his old boat and pays sales tax to seller on the full purchase price of the new boat without any deduction for the trade-in. When seller sells the traded-in used boat, he is not required to collect sales tax.
Example: Seller of farm equipment sells a new tractor to a farmer. The farmer trades in his old tractor that was purchased tax exempt under the gross receipts tax exemption for farm equipment and machinery. When the seller sells the used tractor, he is not required to collect sales tax.
Credits
AUTHORITY: Ark. Code Ann. ยง 26-52-401(22)
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-50, AR ADC 006.05.212-GR-50
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