006.05.06 Ark. Code R. 005-GR-31.1

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

Rule 006.05.06-005-GR-31.1 - EXEMPTION FROM TAX - VOLUNTEER FIRE DEPARTMENTS

A. The gross receipts or gross proceeds derived from the sales of fire protection equipment and emergency equipment to be owned and exclusively used by volunteer fire departments are exempt from all state and local sales or use taxes.

B. The gross receipts or gross proceeds derived from the sales of supplies and materials used in the construction and maintenance of buildings owned by volunteer fire departments, including improvements and fixtures, are exempt from all state and local sales or use taxes.

C. DEFINITIONS.

1. "Protection equipment" means items for human wear and designed as protection of the wearer against injury or disease or as protections against damage or injury of other persons or property, but is not suitable for general use.

2. "Emergency equipment" means any tangible personal property used directly in the performance of emergency services by a volunteer fire department such as fire fighting, hazardous or toxic waste materials response and recovery, search and rescue, and other services which prevent, minimize, or repair injury and damage resulting from major emergencies or from disasters.

3. "Volunteer fire department" means the following:

a. A rural volunteer fire department, including a fire department organized by a city that provides fire protection to areas both within and without the city limits, formed as a subordinate service district of the county or an improvement district, or a subscription fire service department formed as a nonprofit organization for fire protection under the laws of this state;

b. A fire department in which seventy-five percent (75%) or more of the fire fighters employed are volunteer fire fighters, who receive no regular compensation for their services;

c. A fire department with service areas established by the appropriate quorum courts pursuant to Ark. Code Ann. § 14-284-207; and

d. A fire department registered with the Administrator of the Office of Fire Services.

D. COMPENSATION FOR SERVICES. The receipt of appearance fees of less than $20.00 per call by a volunteer is not deemed compensation but as reimbursement for expenses associated with responding to a fire. The waiver of fire protection fees owed by a volunteer firefighter does not constitute compensation.

E. FIRE PROTECTION EQUIPMENT AND EMERGENCY EQUIPMENT - EXAMPLES. Fire protection equipment and emergency equipment include, but are not limited to, the following:

1. Axes;

2. Cascade systems;

3. Communication equipment, including radios, pagers, etc. and batteries for communication equipment;

4. Compressed air, as used in SCBA's;

5. Dry fire hydrants;

6. Fire extinguishers;

7. Fire retardant agents, such as foam;

8. First aid equipment;

9. Generators, as used to power fire protection and emergency equipment;

10. Hazardous/toxic material disposal equipment;

11. Hoses;

12. Individual firefighter's turn out gear, i.e., helmets, visors, boots, gloves, pants, hoods, belts, face shields, or masks etc.;

13. Jaws of life;

14. Ladders;

15. Lights;

16. Motion detectors;

17. Motor vehicles for use in fighting fires, or in the furtherance of other emergency activities, including but not limited to, life saving, first aid, or hazardous substance disposal, and other rescue activities, if the following conditions are satisfied:

a. The Volunteer Fire Department desiring to claim exemption shall obtain an application for registration from the Office of Motor Vehicle Registration, Division of Revenue, Arkansas Department of Finance and Administration. The application must be completed and submitted to that office along with a filing fee; and

b. The vehicle must be painted a distinguishing color and must have conspicuously displayed thereon in letters and figures not less than three inches tall the identity of the volunteer fire department owning such vehicle.

18. Nozzles;

19. Oxygen;

20. SCBA's, Self-contained breathing apparatuses;

21. Sirens;

22. Training aids, such as VCR's, overhead projectors, etc.

23. Water rescue equipment;

24. Winches.

25. Motor oil, grease, antifreeze, and other items used to maintain fire protection and emergency equipment.

F. SUPPLIES AND MATERIALS - EXAMPLES.

1. Supplies and materials include, but are not limited to, the following:

a. Lumber;

b. Roofing materials;

c. Concrete, bricks, mortar, and cinder blocks;

d. Plumbing parts and related fixtures, such as sinks, tubs, and showers;

e. Electrical wire, switches, outlets, circuit breakers and related fixtures, such as vent fans and lights;

f. Heat and air conditioning parts, thermostats, wire, ductwork and related fixtures, such as furnaces, condensing units, and window units;

g. Carpeting; and

h. Windows and doors.

2. Examples of items that are not supplies and materials because the items are not fixtures include, but are not limited to, the following:

a. Household appliances of any type, furniture, rugs, lamps, telephones, etc.;

b. Office equipment, computers, filing cabinets, copiers, fax machines, etc.;

c. Consumable cleaning and maintenance supplies, light bulbs, air filters, floor wax, carpet shampoo, etc.;

d. Landscaping products;

e. Decorative items; and

f. Recreational items.

G. DOCUMENTATION. Sellers must follow the guidelines in GR-79 for sales involving an exemption. Sellers may verify the consumer's registration as a volunteer fire department by calling Fire Services at Arkansas Department of Emergency Management at (501) 683-6700. Seller's are encouraged to obtain indemnification agreements from customers and should maintain adequate records to establish entitlement to this exemption.

H. CONTRACTOR PURCHASES. A contractor may claim the exemption from tax on sales of supplies and materials used in the construction and maintenance of buildings owned by volunteer fire departments, including improvements and fixtures, if:

1. The exempt supplies and materials are separately stated on the purchase invoice; and

2. The contractor provides documentation that the supplies and materials will be used in an exempt volunteer fire department project.

006.05.06 Ark. Code R. 005-GR-31.1

Ark. Code Ann. § 26-52-434