Arkansas’ Financial Focus

Several changes have been made to the Arkansas sales tax that affect farmers and agriculture. Below are a list of new tax law updates. Additional resources and information can be found at www.dfa.arkansas.gov.

Effective August 16, 2013 Act 483:

Allows for the direct shipment of wine by an in-state Arkansas winery or an out-of-state winery to a residence in Arkansas when the purchaser has physically visited the winery and made a purchase. The winery is limited to shipping one (1) case per calendar quarter from the winery location to an Arkansas consumer. A permit issued by Alcoholic Beverage Control is required.

Effective October 1, 2013 Act 1392:

Exempts farmers engaged in commercial farming operations on the purchase of baling twine, net wrap, silage wrap, and other similar products that are used for baling, packaging, tying, wrapping or sealing animal feed products. Animal feed products include hay, straw, grass, fodder and silage.

Effective January 1, 2014 Act 1441:

Exempts utilities used for qualifying agricultural structures and qualifying aquaculture and horticulture equipment. Visit www.dfa.arkansas.gov for definitions and utility eligibility.

Effective July 1, 2014 Act 1401:

Exempts utilities used for commercial grain drying and storage.

Act 1402: Exempts eligible purchases of timber harvesting equipment for state and local sales and use tax. The current exemption is limited to the first $50,000 of the purchase price.

Act 1411: Reduces the state sales and use tax rate for electricity and natural gas used in manufacturing by eligible manufacturers.