2019 Arkansas Code
Title 26 - Taxation
Subtitle 5 - State Taxes
Chapter 52 - Gross Receipts Tax
Subchapter 3 - Imposition of Tax
§ 26-52-322. Withdrawals From Stock - Definition

(a) As used in this section, “withdrawal from stock” means the withdrawal or use of goods, wares, merchandise, or tangible personal property from an established business or from the stock in trade of the established reserves of an established business for consumption or use in the established business or by any other person.

(b)

• (1) The gross receipts tax levied by this chapter and the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq., are levied on a withdrawal from stock.

• (2) For purposes of calculating the gross receipts tax or the compensating use tax under subdivision (b)(1) of this section, the gross receipts or gross proceeds for a withdrawal from stock is:

  • (A) The value of the goods, wares, merchandise, or tangible personal property withdrawn if the goods, wares, merchandise, or tangible personal property:

    • (i) Were withdrawn for consumption or use in the established business; or

    • (ii) Are alcoholic beverages or tobacco products; or

  • (B) Zero dollars ($0.00) if the goods, wares, merchandise, or tangible personal property, other than alcoholic beverages or tobacco products, were withdrawn for consumption or use by a:

    • (i) Nonprofit organization described in 26 U.S.C. § 501(c)(3), as it existed on January 1, 2019;

    • (ii) Public educational institution;

    • (iii) Nonprofit church; or

    • (iv) Private individual who has suffered damage or loss as the result of a natural disaster if:

      • (a) The private individual receiving the goods, wares, merchandise, or tangible personal property resides in an area of the state that the Governor has officially declared to be a disaster area; and

      • (b) A representative of the established business provides a sworn affidavit to the Department of Finance and Administration with the report required under § 26-52-501 describing in detail the goods, wares, merchandise, or tangible personal property withdrawn and the disaster area in which each recipient of the withdrawn goods, wares, merchandise, or tangible personal property resides.

(c) The Secretary of the Department of Finance and Administration may promulgate rules to implement this section.