Arkansas Code § 26-52-307 - Contractors As Consumer Users

(a) (1) Sales of services and tangible personal property, including materials, supplies, and equipment, made to contractors who use them in the performance of any contract are declared to be sales to consumers or users and not sales for resale.

(2) Subsequent transfers of title or possession of the property used in the performance of a contract by contractors are not subject to the tax imposed by this chapter.

(b) Provided that, if the performance of a contract or any portion thereof by a contractor constitutes the performance of a taxable service under the terms of ยง 26-52-301(3), then the entire gross proceeds or gross receipts derived from the performance of the taxable services, including the sale or transfer of title or possession of any materials or supplies used or consumed in performing the taxable services shall be subject to the tax imposed by this chapter.

(c) Contractors shall be entitled to receive a gross receipts tax credit, tax offset, or refund for any gross receipts tax or use tax paid on materials or supplies used or consumed by them which become a part of real estate in performing taxable services.

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Last modified: November 15, 2016