Arkansas – Utilities Used by Grain Drying and Storage Facilities Exempt

SALT Report 2470 – Due to recently passed legislation, sales of electricity, liquefied petroleum gas, and natural gas used by a grain drying and storage facility are exempt from Arkansas sales and use tax. To qualify for the exemption, the utilities used in grain drying and storage facilities must be separately metered from utilities used for other purposes.

The Department has reserved the right to establish additional or alternate requirements for metering these utilities and may require the seller of a utility to certify that the taxpayer is eligible for the exemption.

Additionally, any utility sold and used for purposes other than those stated above will be subject to the full gross receipts tax and the full use tax as allowed by Arkansas law.

This exemption is effective July 1, 2014.

For Further Information

Arkansas General Assembly – Senate Bill 298, Laws 2013