Arkansas Code § 26-52-441 - Natural Gas and Electricity Used in the Manufacturing of Tires

(a) The gross receipts or gross proceeds derived from the sale of natural gas and electricity used in the manufacturing of tires in this state are exempt from the:

(1) Gross receipts tax levied by this chapter; and

(2) Compensating use tax levied by the Arkansas Compensating Tax Act of 1949, ยง 26-53-101 et seq.

(b) As used in this section:

(1) "Manufacturing of tires" means the manufacturing of new motor vehicle tires and does not include the retreading of tires; and

(2) "Motor vehicle" means any vehicle required to be licensed for highway use under Arkansas law.

(c) The natural gas and electricity subject to the exemption in this section shall be separately metered from the natural gas and electricity used for any other purpose by the manufacturer or as otherwise established in the rules issued under subsection (d) of this section.

(d) The Director of the Department of Finance and Administration shall promulgate rules for the proper administration of this section.

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Last modified: November 15, 2016