2010 Arkansas Code
Title 26 - Taxation
Subtitle 5 - State Taxes
Chapter 52 - Gross Receipts Tax
Subchapter 4 - Exemptions
§ 26-52-431 - Timber harvesting equipment.

26-52-431. Timber harvesting equipment.

(a) The first fifty thousand dollars ($50,000) of the purchase price from the sale of machinery or equipment and related attachments that are sold to or used by a person engaged primarily in the harvesting of timber shall be exempt from the taxes levied by this chapter and the Arkansas Compensating Tax Act of 1949, 26-53-101 et seq.

(b) The equipment and related attachments are not exempt unless they are:

(1) Purchased by a person whose primary activity is the harvesting of timber; and

(2) Used exclusively in the off-road activity of harvesting of timber.

(c) The exemption provided in this section shall not apply to a purchase of a repair or replacement part for the equipment.

(d) As used in this section:

(1) "Equipment used in the harvesting of timber" means all off-road equipment and related attachments used in every forestry procedure starting with the severing of a tree from the ground through the point at which the tree or its parts in any form have been loaded in the field in or on a truck or other vehicle for transport to the place of use;

(2) "Machinery or equipment" means only complete systems or units that operate exclusively and directly in the harvesting of timber;

(3) "Off-road equipment" means and includes skidders, feller bunchers, delimbers of all types, chippers of all types, loaders of all types, and bulldozers equipped with grapples used as skidders; and

(4) "Primary activity" means the principal activity in which a person is engaged and to which more than fifty percent (50%) of all the resources of his or her activities are committed.

(e) (1) The exemption provided by this section may be administered as a rebate.

(2) The Director of the Department of Finance and Administration is authorized to promulgate rules to administer this exemption in the form of a rebate.