2015 Arkansas Code
Title 26 - Taxation
Subtitle 5 - State Taxes
Chapter 52 - Gross Receipts Tax
Subchapter 4 - Exemptions
§ 26-52-431 - Timber harvesting machinery, equipment, and related attachments.

(a) The gross receipts or gross proceeds derived from the sale of machinery, new and used equipment, and related attachments that are sold to or used by a person engaged primarily in the harvesting of timber are exempt from the taxes levied by this chapter and the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq.

(b) The machinery, new or used equipment, and related attachments are exempt under this section only if 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 does not apply to a purchase of a repair or replacement part for the machinery, new or used equipment, or related attachment.

(d) As used in this section:

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

(2) "Harvesting of timber" means the use of off-road equipment and related attachments 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;

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

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

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