Arkansas – Farm Utility Exemption

SALT Report 2992 – The Arkansas Department of Finance and Administration issued a notice regarding the exemption from sales and use tax for purchases of utilities used in agricultural, aquaculture, and horticulture beginning January 1, 2014.

The exemption applies to separately metered electricity, natural gas, and liquefied petroleum gas used by:

  • Agricultural structures,
  • Aquaculture equipment, and
  • Horticulture equipment

To qualify for the exemption, the farmer must apply for a certificate from the Department.  The certificate must be provided to each utility supplier.

For purposes of the exemption, qualifying agricultural structures are defined as:

  • A poultry or livestock facility used for commercial production, including a broiler or turkey grow-out house, laying house, hatching unit, nursery unit, breeding house, farrowing unit, and feed-out house,
  • A cattle or dairy facility, including a milking parlor, milk collection unit, and refrigeration unit, and
  • A greenhouse used for commercial production

Qualifying aquaculture or horticulture equipment includes:

  • A cooling unit, collection unit, or irrigation equipment used in a commercial horticulture operation,
  • Equipment used to pump and aerate a pond used in a commercial aquaculture operation, and
  • A holding and sorting tank used in a commercial aquaculture operation

For Further Information

Arkansas Department of Finance and Administration – Farm Utility Exemption

What’s New for Sales Tax in 2013