Section 26-52-301 - Tax levied - DefinitionsExcept for food and food ingredients that are taxed under § 26-52-317 and except for used motor vehicles, trailers, and semitrailers that are taxed under § 26-52-324, there is levied an excise tax of three percent (3%) upon the gross proceeds or gross receipts derived from all sales to any person of the following:
(1) The following items: (A) Tangible personal property;(B) Specified digital products sold: (i) To a purchaser who is an end user; and(ii) With the right of permanent use or less than permanent use granted by the seller regardless of whether the use is conditioned on continued payment by the purchaser; and(2) Natural or artificial gas, electricity, water, ice, steam, or any other tangible personal property sold as a utility or provided as a public service;(3) The following services: (A)(i) Service of furnishing rooms, suites, condominiums, townhouses, rental houses, or other accommodations by hotels, apartment hotels, lodging houses, tourist camps, tourist courts, property management companies, accommodations intermediaries, or any other provider of accommodations to transient guests.(ii) As used in subdivision (3)(A)(i) of this section:(a) "Accommodations intermediary" means a person other than the owner, operator, or manager of a room, suite, condominium, townhouse, rental house, or other accommodation;(b) "Furnishing" means brokering, coordinating, making available for, or otherwise arranging for the sale or use of a room, suite, condominium, townhouse, rental house, or other accommodation by a purchaser; and(c) "Transient guests" means individuals who rent accommodations other than their regular place of abode on less than a month-to-month basis;(B)(i) Service of initial installation, alteration, addition, cleaning, refinishing, replacement, and repair of:(c) Farm machinery and implements;(g) Electrical appliances and devices;(l) Household appliances;(m) Televisions and radios;(p) Engineering instruments;(q) Medical and surgical instruments;(r) Machinery of all kinds;(t) Office machines and equipment;(w) Mechanical tools; and(ii) Additionally, the gross receipts tax levied in this section shall not apply to the repair or maintenance of railroad parts, railroad cars, and equipment brought into the State of Arkansas solely and exclusively for the purpose of being repaired, refurbished, modified, or converted within this state.(iii) The General Assembly determines and affirms that the original intent of this subdivision (3) which provides that gross receipts derived from certain services would be subject to the gross receipts tax was not intended to be applicable, nor shall Arkansas gross receipts taxes be collected, with respect to services performed on watches and clocks which are received by mail or common carrier from outside this state and which, after the service is performed, are returned by mail or common carrier or in the repairer's own conveyance to points outside this state.(iv) Additionally, the gross receipts tax levied in this section shall not apply to the repair or remanufacture of industrial metal rollers or platens that have a remanufactured, nonmetallic material covering on all or part of the roller or platen surface which are brought into the State of Arkansas solely and exclusively for the purpose of being repaired or remanufactured in this state and are then shipped back to the state of origin.(v)(a) The gross receipts tax levied in this section shall not apply to the service of alteration, addition, cleaning, refinishing, replacement, or repair of commercial jet aircraft, commercial jet aircraft components, or commercial jet aircraft subcomponents.(b) "Commercial jet aircraft" means any commercial, military, private, or other turbine or turbo jet aircraft having a certified maximum take-off weight of more than twelve thousand five hundred pounds (12,500 lbs.).(vi) The provisions of subdivision (3)(B)(i) of this section shall not apply to the services performed by a temporary or leased employee or other contract laborer on items owned or leased by the employer. The following criteria must be met for a person to be a temporary or leased employee:(a) There must be a written contract with the temporary employment agency, employee leasing company, or other contractor providing the services;(b) The employee, temporary employment agency, employee leasing company, or other contractor must not bear the risk of loss for damages caused during the performance of the contract. The person for whom the services are performed must bear the risk of loss; and(c) The temporary or leased employee or contract laborer is controlled by the employer as if he or she were a full-time permanent employee. "Control" includes, but is not limited to, scheduling work hours, designating work duties, and directing work performance.(vii)(a) Additionally, the gross receipts tax levied in this section shall not apply to the initial installation, alteration, addition, cleaning, refinishing, replacement, or repair of nonmechanical, passive, or manually operated components of buildings or other improvements or structures affixed to real estate, including, but not limited to, the following:(12) Electrical switches and receptacles;(16) Fire and security alarms;(23) Similar components which become a part of real estate after installation, except flooring.(b) A contractor is deemed to be a consumer or user of all tangible personal property, specified digital products, or digital codes used or consumed by the contractor in providing the nontaxable services, in the same manner as when performing any other contract.(c) This subdivision (3)(B)(vii) shall not apply to any services subject to tax pursuant to the terms of subdivision (3)(D) of this section.(viii) The gross receipts tax levied in subdivision (3)(B)(i) of this section shall not apply to the service of initial installation of any property that is specifically exempted from the tax imposed by this chapter;(C)(i) Service of cable television, community antenna television, and any and all other distribution of television, video, or radio services with or without the use of wires provided to subscribers or paying customers or users, including all service charges and rental charges, whether for basic service, premium channels, or other special service, and including installation and repair service charges and any other charges having any connection with the providing of these services.(ii) The tax levied by this section does not apply to services purchased by a radio or television company for use in providing its services.(iii)(a) The tax levied by this section applies to the sale of a subscription for digital audio-visual work and digital audio work to an end user that does not have the right of permanent use granted by the seller and the use is contingent on continued payments by the purchaser.(b) As used in this subdivision (3)(C)(iii):(1) "Digital audio-visual work" means an electronically transferred series of related images that when shown in succession, impart an impression of motion, together with accompanying sounds, if any; and(2) "Digital audio work" means an electronically transferred work that results from the fixation of a series of musical, spoken, or other sounds, including ringtones; and(D)(i) Service of: (a) Providing transportation or delivery of money, property, or valuables by armored car;(b) Providing cleaning or janitorial work;(c) Pool cleaning and servicing;(e) Telephone answering services;(f) Lawn care and landscaping services;(g) Parking a motor vehicle or allowing the motor vehicle to be parked;(h) Storing a motor vehicle;(j) Providing indoor tanning at a tanning salon.(ii) As used in subdivision (3)(D)(i) of this section:(a) "Landscaping" means the installation, preservation, or enhancement of ground covering by planting trees, bushes and shrubbery, grass, flowers, and other types of decorative plants;(b) "Lawn care" means the maintenance, preservation, or enhancement of ground covering of nonresidential property and does not include planting trees, bushes and shrubbery, grass, flowers, and other types of decorative plants; and(c) "Residential" means a single family residence used solely as the principal place of residence of the owner;(4) Printing of all kinds, types, and characters, including the service of overprinting, and photography of all kinds;(5)(A) Tickets or admissions to places of amusement or to athletic, entertainment, or recreational events, or fees for access to or the use of amusement, entertainment, athletic, or recreational facilities.(B) Membership dues paid to a hunting or fishing club that are paid to obtain access to land for the primary purpose of hunting or fishing are excluded from the tax levied in subdivision (5)(A) of this section;(6)(A) Dues and membership fees to:(i) Health spas, health clubs, and fitness clubs; and(ii) Private clubs within the meaning of § 3-9-202 which hold any permit from the Alcoholic Beverage Control Board allowing the sale, dispensing, or serving of alcoholic beverages of any kind on the premises.(B)(i) Except as provided in subdivision (6)(B)(ii) of this section, the gross receipts derived from services provided by or through a health spa, health club, fitness club, or private club shall not be subject to gross receipts tax unless the service is specifically enumerated as a taxable service under this chapter.(ii) The gross receipts derived by a private club from the charges to members for the preparation and serving of mixed drinks or for the cooling and serving of beer and wine shall be subject to gross receipts tax as well as any supplemental taxes as provided by law.(C) Membership dues paid to a hunting or fishing club that are paid to obtain access to land for the primary purpose of hunting or fishing are excluded from the tax levied in subdivision (6)(A) of this section;(7)(A) Contracts, including service contracts, maintenance agreements and extended warranties, which in whole or in part provide for the future performance of or payment for services which are subject to gross receipts tax.(B) The seller of the contract must collect and remit the tax due on the sale of the contract except when the contract is sold simultaneously with a motor vehicle in which case the purchaser of the motor vehicle shall pay gross receipts tax on the purchase of the contract at the time of vehicle registration; and(8) The total gross receipts derived from the retail sale of any device used in playing bingo and any charge for admittance to facilities or for the right to play bingo or other games of chance regardless of whether the activity might otherwise be prohibited by law.Amended by Act 2023, No. 521,§ 1, eff. 10/1/2023.Amended by Act 2021, No. 1013,§ 1, eff. 1/1/2022.Amended by Act 2019, No. 822,§ 21, eff. 10/1/2019.Amended by Act 2019, No. 822,§ 20, eff. 10/1/2019.Amended by Act 2017, No. 141,§ 16, eff. for tax years beginning on and after 1/1/2018.Amended by Act 2017, No. 141,§ 15, eff. for tax years beginning on and after 1/1/2018.Acts 1941, No. 386, § 3; 1945, No. 64, § 1; 1951 (1st Ex. Sess.), No. 8, § 1; 1957, No. 19, § 1; 1959, No. 260, § 1; 1971, No. 214, § 1; 1973, No. 181, § 1; 1977, No. 500, § 1; 1979, No. 585, § 1; 1981, No. 471, § 1; 1981, No. 983, § 1; A.S.A. 1947, §§ 84-1903, 84-1903.4; Acts 1987, No. 27, § 2; 1987, No. 188, § 1; 1989, No. 769, § 1; 1989 (3rd Ex. Sess.), No. 89, § 1; 1992 (1st Ex. Sess.), No. 58, § 2; 1992 (1st Ex. Sess.), No. 61, § 2; 1992 (2nd Ex. Sess.), No. 5, §§ 1, 2; 1993, No. 282, § 1; 1993, No. 1245, § 4; 1995, No. 257, § 1; 1995, No. 284, § 1; 1995, No. 835, § 2; 1995, No. 1040, § 1; 1997, No. 1076, § 2; 1997, No. 1252, § 1; 1997, No. 1263, § 1; 1997, No. 1359, § 32; 1999, No. 1152, § 2; 1999, No. 1348, § 1; 2001, No. 907, § 2; 2001, No. 1064, § 1; 2003, No. 1112, § 1; 2003, No. 1273, § 6; 2003 (2nd Ex. Sess.), No. 107, §§ 5, 6; 2005, No. 1879, § 1; 2007, No. 154, §§ 3, 4; 2007, No. 110, § 3; 2009, No. 384, § 3; 2011, No. 291, § 9.