Current through Register Vol. 49, No. 9, September, 2024
A. DEFINITIONS.
1. "Manufactured home" means a factory-built
structure produced in accordance with the federal Manufactured Home
Construction and Safety Standards Act and designed to be used as a dwelling
unit.
2. "Mobile home" means a
structure built in a factory prior to the enactment of the federal Manufactured
Home Construction and Safety Standards Act and designed to be used as a
dwelling unit.
3. "Modular home"
means a factory-built structure produced in accordance to state or local
construction codes and standards and designed to be used as a dwelling
unit.
4. "Sales price" means the
purchase price of the new manufactured home or modular home to be paid by the
purchaser as set forth on the actual invoice or bill of sale, excluding
transportation and delivery fees, installation fees, and other items or
services that are to be included as part of the final sale of the manufactured
home by the retailer before the consideration of a trade-in allowance or down
payment in cash or otherwise.
B. RESPONSIBILITY TO COLLECT AND REMIT TAX ON
SALES OF MANUFACTURED HOMES OR MODULAR HOMES. Every seller of new manufactured
homes or modular homes in Arkansas is required to obtain a sales tax permit and
to collect tax from the purchaser. The seller is to report the sale and remit
the tax at the same time and in the same manner as any other taxpayer subject
to the Arkansas gross receipts tax laws. The invoice should clearly distinguish
the sales price of the home from any other nontaxable items that are invoiced
to the customer.
C. CALCULATION OF
TAX DUE.
1. Sales tax shall be calculated on
sixty-two percent (62%) of the sales price of a new manufactured home or
modular home. No tax is due on the sale of mobile homes or on the sale of used
manufactured homes or modular homes.
2. The following are not included in the
sales price for purposes of calculating the sales tax on the sale of new
manufactured homes or modular homes: fees for transporting or delivering the
manufactured home or modular home; installation fees, fees for services
performed by or on behalf of the seller and billed by the seller to the
purchaser, provided such services are not taxable services under Arkansas
law.
3. Items of tangible personal
property that are purchased for use in installing a manufactured or modular
home are taxable, whether the property is purchased by the seller of the
manufactured or modular home, a contractor who installs the home at the
consumer's location, or a different contractor or subcontractor who installs
specific property such as heating and cooling units. Sellers, contractors, or
subcontractors who purchase property used in installation should pay tax to the
seller of the property or self-assess tax as a withdrawal from stock on the
purchase price of the property.
4.
Sales of manufactured homes and modular homes are sourced in accordance with
the sourcing rules provided in Ark. Code Ann. §
26-52-521 and
GR-76.
D. RECORDS. The
seller shall retain copies of the sales documents (invoices, tickets, and bills
of sale) for all sales of new manufactured and modular homes that contain the
following information:
1. The date of the
sale;
2. The purchaser's name and
address;
3. The make, year, model,
serial number, and sales price; and
4. The amount of state and local tax
collected from the purchaser.
Ark. Code Ann. §
26-52-801
et seq.
