2010 Arkansas Code
Title 26 - Taxation
Subtitle 5 - State Taxes
Chapter 52 - Gross Receipts Tax
Subchapter 4 - Exemptions
§ 26-52-430 - Charitable organizations.

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.

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