006.05.06 Ark. Code R. 005-GR-10.1

Current through Register Vol. 49, No. 10, October, 2024

Rule 006.05.06-005-GR-10.1 - MAILING, WORD PROCESSING, AND DATA PROCESSING SERVICES

A. The gross receipts or gross proceeds derived from sales of the following services are not subject to the tax:

1. The addressing, through the use of a computer or otherwise, of material to be mailed, with names and addresses furnished by the customer or provided by the seller for the customer.

2. The production, through the use of a computer or otherwise, of labels to be affixed to material to be mailed, where the names and addresses are furnished by the customer or provided by the seller for the customer. The tax will not apply regardless of whether the seller affixes the labels to the material to be mailed.

3. The production of multiple copies of letters, manuscripts, or other documents using word processing or data processing equipment.

a. The term "multiple copies" includes form letters produced with a slight variation that personalizes essentially the same letter.

b. The term "word processing equipment or data processing equipment" means computer hardware and software used to produce, create, edit and print original documents. The term "word processing equipment or data processing equipment" does not include photocopying or duplication equipment.

B. A seller providing non-taxable services under this rule must pay tax on any tangible personal property used in providing these services at the time the items are purchased. This includes items such as mailing labels, paper, envelopes, and any other property used by the seller or provided to the customers as part of these mailing, word processing and data processing services.

006.05.06 Ark. Code R. 005-GR-10.1

Ark. Code Ann. § 26-52-301