006.05.06 Ark. Code R. 005-GR-69

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

Rule 006.05.06-005-GR-69 - EXEMPTIONS FROM TAX - TEXTBOOKS AND OTHER INSTRUCTIONAL MATERIALS

A. The gross receipts or gross proceeds derived from the sale of textbooks, library books, and other instructional materials are exempt from tax if purchased by:

1. An Arkansas school district or Arkansas public school that receives state funding; or

2. The State of Arkansas for free distribution to Arkansas school districts or Arkansas public schools.

B. The exemption will not apply unless the instructional materials are to be provided to the students free of charge. Private schools and public libraries are not entitled to the exemption.

C. For purposes of the exemption, "instructional materials" means and includes the following:

1. Traditional books, sheet music, and trade books in printed and bound forms;

2. Activity-oriented educational programs that may include manipulatives;

a. "Activity-oriented educational programs" are academic programs that incorporate hands-on learning strategies to enhance learning.

b. "Manipulatives" are tools used in conjunction with an educational activity that allow the student to explore and learn through direct manipulation of physical objects.

3. Hand-held calculators;

4. Technology-based educational materials and electronic software that require the use of electronic equipment in order to be used in the learning process, e.g. software and software licenses;

a. "Technology-based educational materials" does not include the equipment required to make use of these materials, e.g. computer hardware. Computer hardware is taxable.

b. Only software actually used in the learning process qualifies for the exemption. Other software, such as software used for class preparation or administrative purposes, does not qualify for the exemption.

5. Maps, globes, art supplies, workbooks, flash cards, educational blocks, educational models, manipulatives, and charts for classroom use; and

6. Video tapes, DVDs, films, or cassettes containing instructional information designed to be presented to students as part of a course of study.

D. "Instructional materials" does not include the following:

1. Items purchased for use in interscholastic extracurricular activities;

2. Items purchased for use in administration or maintenance of the school including, but not limited to, computer supplies; record keeping, evaluation, or testing supplies; general use furnishings, equipment, and supplies, including photographic or audio visual equipment; or other administrative or maintenance supplies even if these supplies are distributed free of charge to the students; and

3. Construction materials or supplies.

E. This exemption does not apply to colleges, universities, or other post-secondary education facilities.

006.05.06 Ark. Code R. 005-GR-69

Ark. Code Ann. § 26-52-437