Arkansas – Exemption for Pollution Control Equipment Expanded

3/6/2013

SALT Report 2221 – The Arkansas General Assembly recently amended Arkansas Code §26-52-402(a)(3) to expand the sales tax exemption for certain machinery and equipment. The regulation now states that the gross receipts for machinery and equipment required by state or federal law or regulations to be installed and utilized by manufacturing and processing plants or facilities, cities or towns in the state to prevent or reduce air or water pollution or contamination that might otherwise result from the plant, facility, city, or town are exempt from sales tax.

Further, the exemption for machinery and equipment has been expanded to include:

  • Machinery and equipment used in the refining of petroleum-based products to remove sulfur pollutants from the refined product, and
  • Any repair parts and repair labor for the exempt machinery or equipment

For Further Information

Arkansas General Assembly – HB 1281 Act 233, Laws 2013