006.05.06 Ark. Code R. 005-GR-76
Example: XYZ is a business located in Jacksonville, Arkansas that repairs automobile motors. After repairing the motor, the customer picks-up the motor at the shop in Jacksonville. XYZ will collect the state sales tax, Jacksonville sales tax, and Pulaski County sales tax.
Example 1: XYZ is a business located in Jacksonville, Arkansas that repairs automobile motors. After repairing the motor, XYZ ships the motor by common carrier to Conway, Arkansas. Since the customer took receipt of the service in Conway, XYZ will collect the state sales tax, Conway sales tax, and Faulkner County sales tax.
Example 2: ABC performs a landscaping job in Monticello, Arkansas. ABC will collect the state sales tax, Monticello sales tax, and Drew County sales tax.
Example 1: XYZ is located in Little Rock and leases fork lifts. The payment terms are a down payment and twenty-four (24) monthly payments. The customer picks up the forklift in Little Rock and takes it to the customer's warehouse in North Little Rock. State, Little Rock, and Pulaski County sales taxes apply to the down payment, and state, North Little Rock, and Pulaski County sales taxes apply to the remaining monthly lease payments.
Example 2: XYZ is located in Little Rock and leases fork lifts. The payment terms are a down payment and twenty-four (24) monthly payments. XYZ delivers the forklift to the customer's warehouse in North Little Rock. State, North Little Rock, and Pulaski County sales taxes apply to the down payment and all monthly lease payments.
Example 3: XYZ is located in Little Rock and leases backhoes. XYZ delivers a backhoe to its customer in Jonesboro, Craighead County on January 1, 2008. Two months later, the customer moves to Little Rock. On March 1, 2008, the customer informs XYZ that the backhoe is in Little Rock. State, Jonesboro, and Craighead County sales taxes apply to the lease payments for January and February. State, Little Rock, and Pulaski County sales taxes apply to the lease payments beginning with the March payment.
Example 4: XYZ is located in Little Rock and leases backhoes. XYZ leases a backhoe for six (6) months to its customer for use at a construction site in Tennessee. The customer picks up the backhoe in Little Rock. Because the customer (lessee) receives the equipment in Arkansas, the first payment is subject to Arkansas state and local sales taxes. The remaining lease payments are subject to any applicable Tennessee taxes.
Example 1: XYZ is located in Little Rock and rents tables and chairs for meetings and parties. The customer picks up the tables and chairs at XYZ's business location. State, Little Rock, and Pulaski County sales tax apply, as well as the short-term rental tax.
Example 2: XYZ is located in Little Rock and rents tables and chairs for meetings and parties. XYZ delivers the tables and chairs at the party location in North Little Rock. State, North Little Rock, and Pulaski County sales tax apply, as well as the short-term rental tax.
Example 1: XYZ is located in Little Rock and rents motor vehicles on a short-term basis (less than thirty (30) days). The customer picks up the motor vehicle at XYZ's business location. XYZ should collect state, Little Rock, and Pulaski County sales taxes, as well as state and local shortterm rental vehicle taxes. Use of the motor vehicle outside of Little Rock or Pulaski County does not affect the state or local taxes collected.
Example 2: XYZ is located in Little Rock and rents motor vehicles on a long-term basis (thirty (30) days or more). The customer picks up the motor vehicle at XYZ's business location, but the primary property location of the motor vehicle is in Sherwood, Pulaski County. If sales tax was not paid on the motor vehicle at the time of registration, then XYZ should collect state, Sherwood, and Pulaski County sales taxes, as well as the long-term rental tax. If sales tax was paid on the motor vehicle at the time of registration, then tax is not collected on the period payments.
Example 3: XYZ is located in Little Rock and rents airplanes on a short-term basis (less than thirty (30) days). The customer takes receipt of the airplane in Little Rock. XYZ should collect state, Little Rock, and Pulaski County sales taxes, as well as the short-term rental tax, regardless of whether tax was paid on the airplane at the time of purchase.
Example 4: XYZ is located in Little Rock and rents an airplane for six (6) months to a business (a long-term rental). The primary property location of the airplane is Fayetteville, Washington County. If tax was not paid on the aircraft at the time of purchase, then XYZ will collect state, Fayetteville, and Washington County sales taxes on all payments for the lease of the airplane. If sales tax was paid on the aircraft at the time of purchase, then tax is not collected on the payments for the long-term rental.
006.05.06 Ark. Code R. 005-GR-76
Ark. Code Ann. § 26-52-521