There is a newer version of the Arkansas Code
2010 Arkansas Code
26-52-430. Charitable organizations.
Title 26 - Taxation
Subtitle 5 - State Taxes
Chapter 52 - Gross Receipts Tax
Subchapter 4 - Exemptions
§ 26-52-430 - Charitable organizations.
(a) The exemptions set forth in this subchapter for a charitable organization shall not extend to sales of new tangible personal property by the charitable organization if the sales compete with sales by for-profit businesses.
(b) A sale by a charitable organization does not compete with a sale by a for-profit business if:
(1) The sales transaction is conducted by a member of the charitable organization and not by any franchisee or licensee;
(2) All the proceeds derived from the sales transaction go to the charitable organization;
(3) The sales transaction is not a continuing one and is held not more than three (3) times a year; and
(4) The dominant motive of the majority of purchasers of the items sold is the making of a charitable contribution, with the purchase of an item being merely incidental and secondary to the dominant purpose of making a gift to the charitable organization.
(c) (1) The provisions of this section shall not apply to a sale made by a nonprofit hospital, a cafeteria at a nonprofit hospital, or a gift shop at a nonprofit hospital, whether operated by the hospital, a hospital auxiliary, or other nonprofit organization.
(2) The provisions of this section shall also not apply to a gift shop operated by a charitable organization at a for-profit hospital.
Disclaimer: These codes 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.