Current through Register Vol. 49, No. 9, September, 2024
A. The gross receipts or gross proceeds
derived from the sales of fire protection equipment and emergency equipment to
be owned and exclusively used by volunteer fire departments are exempt from all
state and local sales or use taxes.
B. The gross receipts or gross proceeds
derived from the sales of supplies and materials used in the construction and
maintenance of buildings owned by volunteer fire departments, including
improvements and fixtures, are exempt from all state and local sales or use
taxes.
C. DEFINITIONS.
1. "Protection equipment" means items for
human wear and designed as protection of the wearer against injury or disease
or as protections against damage or injury of other persons or property, but is
not suitable for general use.
2.
"Emergency equipment" means any tangible personal property used directly in the
performance of emergency services by a volunteer fire department such as fire
fighting, hazardous or toxic waste materials response and recovery, search and
rescue, and other services which prevent, minimize, or repair injury and damage
resulting from major emergencies or from disasters.
3. "Volunteer fire department" means the
following:
a. A rural volunteer fire
department, including a fire department organized by a city that provides fire
protection to areas both within and without the city limits, formed as a
subordinate service district of the county or an improvement district, or a
subscription fire service department formed as a nonprofit organization for
fire protection under the laws of this state;
b. A fire department in which seventy-five
percent (75%) or more of the fire fighters employed are volunteer fire
fighters, who receive no regular compensation for their services;
c. A fire department with service areas
established by the appropriate quorum courts pursuant to Ark. Code Ann. §
14-284-207;
and
d. A fire department registered
with the Administrator of the Office of Fire Services.
D. COMPENSATION FOR SERVICES. The
receipt of appearance fees of less than $20.00 per call by a volunteer is not
deemed compensation but as reimbursement for expenses associated with
responding to a fire. The waiver of fire protection fees owed by a volunteer
firefighter does not constitute compensation.
E. FIRE PROTECTION EQUIPMENT AND EMERGENCY
EQUIPMENT - EXAMPLES. Fire protection equipment and emergency equipment
include, but are not limited to, the following:
1. Axes;
2. Cascade systems;
3. Communication equipment, including radios,
pagers, etc. and batteries for communication equipment;
4. Compressed air, as used in
SCBA's;
5. Dry fire
hydrants;
6. Fire
extinguishers;
7. Fire retardant
agents, such as foam;
8. First aid
equipment;
9. Generators, as used
to power fire protection and emergency equipment;
10. Hazardous/toxic material disposal
equipment;
11. Hoses;
12. Individual firefighter's turn out gear,
i.e., helmets, visors, boots, gloves, pants, hoods, belts, face shields, or
masks etc.;
13. Jaws of
life;
14. Ladders;
15. Lights;
16. Motion detectors;
17. Motor vehicles for use in fighting fires,
or in the furtherance of other emergency activities, including but not limited
to, life saving, first aid, or hazardous substance disposal, and other rescue
activities, if the following conditions are satisfied:
a. The Volunteer Fire Department desiring to
claim exemption shall obtain an application for registration from the Office of
Motor Vehicle Registration, Division of Revenue, Arkansas Department of Finance
and Administration. The application must be completed and submitted to that
office along with a filing fee; and
b. The vehicle must be painted a
distinguishing color and must have conspicuously displayed thereon in letters
and figures not less than three inches tall the identity of the volunteer fire
department owning such vehicle.
18. Nozzles;
19. Oxygen;
20. SCBA's, Self-contained breathing
apparatuses;
21. Sirens;
22. Training aids, such as VCR's, overhead
projectors, etc.
23. Water rescue
equipment;
24. Winches.
25. Motor oil, grease, antifreeze, and other
items used to maintain fire protection and emergency equipment.
F. SUPPLIES AND MATERIALS -
EXAMPLES.
1. Supplies and materials include,
but are not limited to, the following:
a.
Lumber;
b. Roofing
materials;
c. Concrete, bricks,
mortar, and cinder blocks;
d.
Plumbing parts and related fixtures, such as sinks, tubs, and
showers;
e. Electrical wire,
switches, outlets, circuit breakers and related fixtures, such as vent fans and
lights;
f. Heat and air
conditioning parts, thermostats, wire, ductwork and related fixtures, such as
furnaces, condensing units, and window units;
g. Carpeting; and
h. Windows and doors.
2. Examples of items that are not supplies
and materials because the items are not fixtures include, but are not limited
to, the following:
a. Household appliances of
any type, furniture, rugs, lamps, telephones, etc.;
b. Office equipment, computers, filing
cabinets, copiers, fax machines, etc.;
c. Consumable cleaning and maintenance
supplies, light bulbs, air filters, floor wax, carpet shampoo, etc.;
d. Landscaping products;
e. Decorative items; and
f. Recreational items.
G. DOCUMENTATION. Sellers must
follow the guidelines in GR-79 for sales involving an exemption. Sellers may
verify the consumer's registration as a volunteer fire department by calling
Fire Services at Arkansas Department of Emergency Management at (501) 683-6700.
Seller's are encouraged to obtain indemnification agreements from customers and
should maintain adequate records to establish entitlement to this
exemption.
H. CONTRACTOR PURCHASES.
A contractor may claim the exemption from tax on sales of supplies and
materials used in the construction and maintenance of buildings owned by
volunteer fire departments, including improvements and fixtures, if:
1. The exempt supplies and materials are
separately stated on the purchase invoice; and
2. The contractor provides documentation that
the supplies and materials will be used in an exempt volunteer fire department
project.
Ark. Code Ann. §
26-52-434
