Current through Register Vol. 49, No. 9, September, 2024
A. The gross
receipts or gross proceeds derived from the sale of textbooks, library books,
and other instructional materials are exempt from tax if purchased by:
1. An Arkansas school district or Arkansas
public school that receives state funding; or
2. The State of Arkansas for free
distribution to Arkansas school districts or Arkansas public schools.
B. The exemption will not apply
unless the instructional materials are to be provided to the students free of
charge. Private schools and public libraries are not entitled to the
exemption.
C. For purposes of the
exemption, "instructional materials" means and includes the following:
1. Traditional books, sheet music, and trade
books in printed and bound forms;
2. Activity-oriented educational programs
that may include manipulatives;
a.
"Activity-oriented educational programs" are academic programs that incorporate
hands-on learning strategies to enhance learning.
b. "Manipulatives" are tools used in
conjunction with an educational activity that allow the student to explore and
learn through direct manipulation of physical objects.
3. Hand-held calculators;
4. Technology-based educational materials and
electronic software that require the use of electronic equipment in order to be
used in the learning process, e.g. software and software licenses;
a. "Technology-based educational materials"
does not include the equipment required to make use of these materials, e.g.
computer hardware. Computer hardware is taxable.
b. Only software actually used in the
learning process qualifies for the exemption. Other software, such as software
used for class preparation or administrative purposes, does not qualify for the
exemption.
5. Maps,
globes, art supplies, workbooks, flash cards, educational blocks, educational
models, manipulatives, and charts for classroom use; and
6. Video tapes, DVDs, films, or cassettes
containing instructional information designed to be presented to students as
part of a course of study.
D. "Instructional materials" does not include
the following:
1. Items purchased for use in
interscholastic extracurricular activities;
2. Items purchased for use in administration
or maintenance of the school including, but not limited to, computer supplies;
record keeping, evaluation, or testing supplies; general use furnishings,
equipment, and supplies, including photographic or audio visual equipment; or
other administrative or maintenance supplies even if these supplies are
distributed free of charge to the students; and
3. Construction materials or
supplies.
E. This
exemption does not apply to colleges, universities, or other post-secondary
education facilities.
Ark. Code Ann. §
26-52-437
