2014 Arkansas Code
Title 26 - Taxation
Subtitle 5 - State Taxes
Chapter 51 - Income Taxes
Subchapter 3 - Exemptions and Reduced Tax Rates
§ 26-51-303 - Exempt organizations.
(a) The following organizations shall be exempt from taxation under the Income Tax Act of 1929, § 26-51-101 et seq.:
(1) Fraternal benefit societies, orders, or associations:
(A) Operating under the lodge system or for the exclusive benefit of the members of a fraternity itself operating under the lodge system; and
(B) Providing for the payment of life, sick, accident, or other benefits to the members of such society, order, or association or their dependents;
(2) Domestic life and disability insurance companies and foreign insurance companies;
(3) Cemetery corporations;
(4) Business leagues, chambers of commerce, or boards of trade not organized for profit and no part of the net earnings of which inures to the benefit of any private stockholders or individuals;
(5) Civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare;
(6) Farmers' or other mutual hail, cyclone, or fire insurance companies, or other domestic insurance companies writing lines of insurance other than those specified in subdivisions (a)(1) and (2) of this section, mutual ditch or irrigation companies, mutual or cooperative telephone companies, or like organizations of a purely local character, but only if eighty-five percent (85%) or more of the income of the organization consists solely of assessments, dues, and fees collected from members for the sole purpose of meeting losses and expenses;
(7) Farmers', fruit growers', or like organizations organized and operated as sales agent for the purpose of marketing the products of members and turning back to them the proceeds of sales, less the necessary selling expenses, on the basis of the quantity of produce furnished by them;
(8) Labor, agricultural, or horticultural organizations, no part of the net earnings of which inures to the benefit of any private stockholder or member;
(9) Corporations, trusts, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda or otherwise attempting to influence legislation, and which does not participate in, or intervene in, including the publishing or distributing of statements, any political campaign on behalf of or in opposition to any candidate for public office; and
(10) A political organization that does not have political organization taxable income for the tax year under 26 U.S.C. § 527, as in effect on January 1, 2009.
(b) (1) Every organization claiming exemption under the Income Tax Act of 1929 shall notify the Revenue Division of the Department of Finance and Administration of its exempt status.
(2) Each such organization shall provide such additional information as the division shall also reasonably require for verification of the organization's exempt status.
(3) Provided, however, that any organization which is determined to be exempt from income taxation under the provisions of the Internal Revenue Code, 26 U.S.C. § 1 et seq. for any one (1) or more of the purposes set forth in subsection (a) of this section shall verify its exempt status hereunder by delivery to the division of a copy of the document declaring its exempt status under the Internal Revenue Code, 26 U.S.C. § 1 et seq.
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