Arkansas Code § 26-52-446 - Grain Drying and Storage Facilities

(a) As used in this section, "utility" means electricity, liquefied petroleum gas, and natural gas.

(b) (1) The gross receipts or gross proceeds derived from the sale of a utility used by a grain drying and storage facility are exempt from the gross receipts tax levied by this chapter, and the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq.

(2) A utility sold for a purpose other than the purposes stated in subdivision (b)(1) of this section is subject to the full gross receipts tax levied by this chapter, and the full compensating use tax levied by the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq.

(c) (1) A utility subject to the exemption provided under this section shall be separately metered from a utility used for any other purpose by the taxpayer.

(2) However, the rules promulgated under subsection (e) of this section may establish additional or alternate requirements for the metering of utilities under this section.

(d) Before allowing the exemption of a utility under this section, the Director of the Department of Finance and Administration may require a seller of a utility to obtain a certificate from the taxpayer in the form prescribed by the director, certifying that the taxpayer is eligible for the exemption.

(e) The director shall promulgate rules for the proper administration of this section.

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Last modified: November 15, 2016