2014 Arkansas Code
Title 26 - Taxation
Subtitle 5 - State Taxes
Chapter 53 - Compensating Or Use Taxes
Subchapter 1 - Arkansas Compensating Tax Act of 1949
§ 26-53-149 - Partial replacement and repair of certain machinery and equipment. [Effective July 1, 2014.]
(a) The taxes levied under §§ 26-53-106 and 26-53-107 on the privilege of storing, using, distributing, or consuming the following within this state are subject to a refund as provided in this section:
(1) Machinery and equipment purchased to modify, replace, or repair, either in whole or in part, existing machinery or equipment used directly in producing, manufacturing, fabricating, assembling, processing, finishing, or packaging articles of commerce at a manufacturing or processing plant or facility in this state; and
(2) Service relating to the initial installation, alteration, addition, cleaning, refinishing, replacement, or repair of machinery or equipment described in subdivision (a)(1) of this section.
(b) Beginning July 1, 2014, the taxes levied under §§ 26-53-106 and 26-53-107 that are subject to a refund under this section are the taxes in excess of four and seven-eighths percent (4.875%).
(c) The excise tax of one-eighth of one percent (0.125%) levied in Arkansas Constitution, Amendment 75, and the temporary excise tax of one-half percent (0.5%) levied in Arkansas Constitution, Amendment 91, are not subject to refund under this section.
(d) As used in this section:
(1) "Manufacturing" or "processing" means the same as defined under § 26-53-114(b) and includes activities described in subsection (a) of this section, both independently and collectively; and
(2) "Used directly" means the same as defined under § 26-53-114(c).
(e) All existing excise tax exemptions, including without limitation exemptions under §§ 26-52-402 and 26-53-114, remain in full force and effect and are not limited by this section.
(f) To claim the benefit of the tax refund under this section, a taxpayer shall hold a direct pay sales and use tax permit from the Department of Finance and Administration and shall claim the tax refund under the direct pay permit.
(g) The following provisions of the Arkansas Tax Procedure Act, § 26-18-101 et seq., apply to claims for a refund under this section:
(1) The time limitations that apply to claims for a refund of an overpayment of state tax; and
(2) The procedures that apply to the disallowance or proposed disallowance of claims for a refund.
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