§ 26-52-403 — Farm equipment and machinery - Definitions

(a) As used in this section: (1) (A) "Farm equipment and machinery" means implements used exclusively and directly in farming. (B) "Farm equipment and machinery" includes: (i) Irrigation pipe used to carry water from an irrigation well to the crops produced in farming regardless of whether the irrigation pipe is used above ground or is buried underground; and (ii) Implements used to harvest crops produced in farming by others. (C) However, "farm equipment and machinery" shall not include implements used in the production and severance of timber, motor vehicles of a type subject to registration, airplanes, or hand tools; and (2) "Farming" means the agricultural production of food or fiber as a business or the agricultural production of grass sod or nursery products as a business. (b) The gross receipts or gross proceeds derived from the sale of new and used farm equipment and machinery are exempt from the Arkansas gross receipts tax levied by this chapter. (c) The Secretary of the Department of Finance and Administration shall promulgate rules and prescribe forms for claiming the exemption provided by this section. (d) (1) If a person claims the exemption provided for in this section for an all-terrain vehicle: (A) The person shall complete a form prescribed by the secretary that includes: (i) The person's name and contact information; (ii) The person's tax identification number; (iii) The make, model, year, and identification number of the all-terrain vehicle; (iv) A signed statement indicating that the person understands that the use of an exemption under this section for the purchase of an all-terrain vehicle may be subject to audit by the Department of Finance and Administration; and (v) Any other information required by the secretary to aid in the administration of this section; and (B) The seller of the all-terrain vehicle shall submit the completed form required under subdivision (d)(1)(A) of this section to the department with the seller's sales tax return for the month in which the all-terrain vehicle was sold. (2) (A) As used in this section, "all-terrain vehicle" means a vehicle that: (i) Has three (3), four (4), or six (6) wheels; (ii) Is fifty inches (50") or less in width; (iii) Is equipped with nonhighway tires; and (iv) Has an engine displacement of no more than one thousand cubic centimeters (1,000 cc). (B) "All-terrain vehicle" does not include a golf cart, riding lawnmower, or lawn or garden tractor.

Legislative History

Amended by Act 2019, No. 819,§ 19, eff. 10/1/2019. Amended by Act 2019, No. 910,§ 3847, eff. 7/1/2019. Acts 1981, No. 432, § 1; A.S.A. 1947, § 84-1904.10; Acts 1987, No. 350, § 1; 1995, No. 587, § 1; 1999, No. 1033, § 1; 2005, No. 1994, § 208; 2007, No. 181, § 20; 2009, No. 655, § 18.