Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
GROSS RECEIPTS TAX RULES
Rule 006.05.06-005-GR-41 - EXEMPTIONS FROM TAX - RAW FARM PRODUCTS GROWN IN ARKANSAS
Universal Citation: AR Admin Rules 006.05.06-005-GR-41
Current through Register Vol. 49, No. 9, September, 2024
A. The gross receipts or gross proceeds derived from sales of raw products, including Christmas trees, produced or grown at a farm, orchard, or garden in Arkansas are exempt from tax if:
1. The sale of such
products is made by the producer directly to the consumer; and
2. The sale is not from an established
business located off the farm. Farmers' markets that operate from an
established place off the farm or in an established manner off the farm are
deemed to be established businesses. Products sold at farmers' markets off the
farm are not eligible for the exemption.
B. Grass sod is not a raw farm product, and the gross receipts or gross proceeds derived from sales of grass sod are taxable.
C. Sales of flowers or non-edible trees, shrubs, or plants by florists or nurserymen are not exempt from tax.
Ark. Code Ann. § 26-52-401(18)
Disclaimer: These regulations may not be the most recent version. Arkansas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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