006.05.212-GR-66. EXEMPTIONS FROM TAX - MANUFACTURING EXEMPTION - POLLUTION CONTROL MACHINERY:
AR ADC 006.05.212-GR-66Arkansas Administrative Code
Ark. Admin. Code 006.05.212-GR-66
006.05.212-GR-66. EXEMPTIONS FROM TAX - MANUFACTURING EXEMPTION - POLLUTION CONTROL MACHINERY:
1. The gross receipts or gross proceeds derived from the sale of catalysts, chemicals, reagents or solutions which are consumed or used by manufacturing or processing plants or facilities, or cities or towns, in this state to prevent or reduce air or water pollution or contamination which might otherwise result from the operation of the facility are exempt from gross receipts tax.
Example: Chlorine used to kill bacteria in wastewater is exempt.
c. “Reagent” means any substance which by reason of its capacity for taking part in certain reactions is used for various purposes, including detecting, examining, or measuring other substances or in preparing materials. A reagent is also a substance used to convert one substance into another by means of the reaction which it causes. To be a reagent for purposes of this exemption, a substance must be primarily used as a reagent.
1. Machinery and equipment used in a city or county wastewater treatment plant are exempt if the machinery and equipment is used to remove contaminants from wastewater. The treatment process begins when solids are first removed from the wastewater and ends when all solids and other contaminants are removed from wastewater.
Examples: pipes, pumps, valves, screens, screen baskets, gates, blowers, fans, skimmers, aerators, diffusers, equalization basins, concrete flumes, conveyor belts, flow meters, grit separators, grit removal equipment, back flow preventers, chlorination equipment, digester equipment, vacuators, and air eductors.
4. The following items are examples of taxable items: materials used in constructing improvements to real estate, housing for machinery, handrails, ladders, paint, lighting equipment, pump stations, lift stations, pipes and equipment utilized in sewage collection outside of the treatment area, machinery and equipment which control the flow of wastewater into the treatment facility, sludge de-watering equipment, machinery and equipment used for measuring, controlling, or testing the treatment process, sludge pumping equipment, and sludge application system.
Credits
AUTHORITY: Ark. Code Ann. §§ 26-52-402; 26-52-401(36)
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-66, AR ADC 006.05.212-GR-66
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