Arkansas Code § 26-52-403 - Farm Equipment and Machinery

(a) As used in this section:

(1) (A) "Farm equipment and machinery" means implements used exclusively and directly in farming.

(B) "Farm equipment and machinery" includes:

(i) Irrigation pipe used to carry water from an irrigation well to the crops produced in farming regardless of whether the irrigation pipe is used above ground or is buried underground; and

(ii) Implements used to harvest crops produced in farming by others.

(C) However, "farm equipment and machinery" shall not include implements used in the production and severance of timber, motor vehicles of a type subject to registration, airplanes, or hand tools; and

(2) "Farming" means the agricultural production of food or fiber as a business or the agricultural production of grass sod or nursery products as a business.

(b) The gross receipts or gross proceeds derived from the sale of new and used farm equipment and machinery are exempt from the Arkansas gross receipts tax levied by this chapter.

(c) The Director of the Department of Finance and Administration shall promulgate rules and prescribe forms for claiming the exemption provided by this section.

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Last modified: November 15, 2016