Arkansas – Manufacturing Exemption for Electricity and Natural Gas Effective July 1, 2015

Salt Report 3607 – Arkansas has passed a bill (Act 1411) that reduces the sales and use tax rate on electricity and natural gas for qualifying manufacturing activities.  The next rate reduction for qualifying manufacturers will be effective July 1, 2015 moving to 0.625% from 1.625%.

“The state rate for manufacturers under NAICS code section 31 through 33 and 115111 will have a state rate of 1.625% beginning July 1, 2014 and a tax rate of 0.625% beginning July 1, 2015. Eligible high efficiency generators of electric power will have a reduced state rate of 1.625% beginning January 1, 2015. Eligible taxpayers must obtain a certificate from Sales Tax as provided below in order to claim the reduced rate unless a certificate has already been issued.”

Further Information:

Arkansas What’s New2015