For Immediate Release
February 6, 2013

Arkansas—Sales and Use Tax: Exemption for Pollution Control Equipment Expanded

Arkansas—Sales and Use Tax: Exemption for Pollution Control Equipment Expanded

Arkansas—Sales and Use Tax: Exemption for Pollution Control Equipment Expanded

Exemptions allow for federal law and regulations to be considered in addition to current state regulations.

Arkansas Code §26-52-402 exempting machinery and equipment used to prevent or reduce air pollution or contamination from state sales and use tax has been expanded to include the following:

  • Federal law or regulation (formerly state only)
  • Cities or towns in the state (formerly manufacturing and processing plants or facilities only)

Under a new provision of (H.B. 1281), the exemption includes:

  • machinery and equipment required by state or federal law to be used in the refining of petroleum-based products to remove sulfur pollutants from the refined product; and
  • any repair parts and repair labor for such machinery or equipment.

EFFECTIVE DATE. Sections 1 and 2 of this act are effective on the first day of the calendar quarter following the effective date of March 1, 2013.

If you would like additional information on this topic or have any questions, please contact the taxdesk@thesaltgroup.com

 

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