006.05.212-GR-71. TAX COLLECTED BY SELLER - PROHIBITED PRACTICE - TAX DUE ON GROSS RECEIPTS - L...
AR ADC 006.05.212-GR-71Arkansas Administrative Code
Ark. Admin. Code 006.05.212-GR-71
006.05.212-GR-71. TAX COLLECTED BY SELLER - PROHIBITED PRACTICE - TAX DUE ON GROSS RECEIPTS - LOCAL TAXES:
1. Manufacturing Utilities. As of July 1, 2008, the state tax rate on sales of natural gas or electricity to a manufacturer for use directly in the manufacturing process is four percent (4%) of the gross receipts or gross proceeds derived from the sale. From July 1, 2007, through June 30, 2008, the state tax rate on sales of natural gas or electricity to a manufacturer for use directly in the manufacturing process was four and one-half percent (4 ½ %) of the gross receipts or gross proceeds derived from the sale. (See Rule 2007-5.)
a. Computing tax on an item basis. XYZ retailer sells a book and a magazine to Purchaser A. The sales price of the book is $17.95 and the sales price of the magazine is $6.00. The applicable state sales tax rate is six percent (6.0%). XYZ retailer elects to compute the tax due on a per item basis. The state tax on the book is $1.08 (6% of $17.95 = $1.077). The state tax on the magazine is $0.36 (6% of $6.00 = $0.36). The total state tax computed on a per item basis is $1.44.
b. Computing tax on an invoice basis. XYZ retailer sells a book and a magazine to Purchaser A. The sales price of the book is $17.95 and the sales price of the magazine is $6.00. The applicable state sales tax rate is six percent (6.0%). XYZ retailer elects to compute the tax due on an invoice basis. The invoice price before tax is $23.95. The total state tax computed on the invoice basis is $1.44 (6% of $23.95 = $1.437).
E. LOCAL TAXES. Towns, cities, and counties have authority under Arkansas law to levy sales taxes. Taxpayers should contact the Sales and Use Tax Section of the Revenue Division if they have a question as to whether they are within a jurisdiction which requires them to collect and remit a local tax. When the Commissioner is authorized or required to collect or administer a local sales tax, that tax shall be administered in accordance with these rules. See GR-91 for specific rules concerning the administration of local sales taxes.
Credits
AUTHORITY: Ark. Code Ann. §§ 26-52-501; 26-52-508; 26-52-301; 26-52-302; 26-52-103(8); various sections of Title 26, Chapters 73, 74, and 75
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-71, AR ADC 006.05.212-GR-71
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