26 CAR Part 37 — Sales and Use Tax Exemption for Water Used for Commercial Production of Poultry

Chapter I

Subchapter B

Subpart 1

26 CAR § 37-101 Definitions {#sec-26-car-37-101 omnilex-key=us-ar-regs-official--title-26-part-37--26 CAR § 37-101}

26 CAR § 37-101. Definitions.

As used in this part:

(1) "Commercial poultry water sales tax exemption certificate" or "exemption certificate" means the certificate provided by the purchaser of water for exclusive use in the operation of a poultry farm attesting to the purchaser's entitlement to the exemption;

(2) "Poultry" means:

(A) Chickens;

(B) Turkeys;

(C) Ducks;

(D) Geese; and

(E) Any other domesticated birds that are edible by humans; and

(3) "Poultry farm" means a facility used for the commercial production of poultry, including a:

(A) Broiler or turkey grow-out house;

(B) Laying house;

(C) Hatching unit;

(D) Nursery unit; and

(E) Breeding house.

26 CAR § 37-102 Exemption from tax {#sec-26-car-37-102 omnilex-key=us-ar-regs-official--title-26-part-37--26 CAR § 37-102}

26 CAR § 37-102. Exemption from tax.

(a) The sale of water for exclusive use in the operation of a poultry farm is exempt from the gross receipts tax levied by the Arkansas Gross Receipts Act of 1941, Arkansas Code § 26-52-101 et seq., and the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, Arkansas Code § 26-53-101 et seq., when the conditions of this part are met.

(b) The water must be separately metered by the water utility or provider for the exclusive use of the poultry farm to qualify for the exemption in subsection (a) of this section.

26 CAR § 37-103 Water provider requirements {#sec-26-car-37-103 omnilex-key=us-ar-regs-official--title-26-part-37--26 CAR § 37-103}

26 CAR § 37-103. Water provider requirements.

(a) At or before the installation of the separate meter to comply with 26 CAR § 37-102(b), the water utility or provider must obtain a commercial poultry water sales tax exemption certificate from the purchaser certifying that the poultry farm is eligible for the exemption.

(b)(1) The water utility or provider must retain the exemption certificates provided at the time of the separate metering that certifies each meter is for exclusive use in the commercial production of poultry.

(2) A direct pay permit holder must retain a copy of the exemption certificate required by subsection (a) of this section to claim the exemption for water that is used exclusively in the commercial production of poultry.

26 CAR pt. 37, Appendix A Commercial Poultry Water Sales Tax Exemption Certification {#sec-26-car-pt.-37-appendix-a omnilex-key=us-ar-regs-official--title-26-part-37--26 CAR pt. 37, Appendix A}

Commercial Poultry Water Sales Tax Exemption Certification

I, am engaged in the production of ( purchaser's name - please print ) Poultry as a commercial farming business. The water I am purchasing through the separate meter

No. will be used exclusively in the commercial production of poultry on a poultry farm. I am aware that this claim for exemption will be reviewed by the Department of Finance and Administration. I am also aware that any false representation made by me in an attempt to purchase water free from Arkansas sales tax will result in the assessment of tax, penalty, and interest against me and is punishable as a misdemeanor under Arkansas law.

Signature of Purchaser Date Telephone Number

Address City State