PREVIOUS
26 CAR § 30-502. Services subject to tax — Taxable services
26 CAR § 30-502. Services subject to tax — Taxable services.
(a) Services.
(1)(A) The service of initial installation, alteration, addition, cleaning, refinishing, replacement, and repair of the following items of tangible personal property are subject to the tax:
(i) Motor vehicles;
(ii) Aircraft;
(iii) Farm machinery and farm implements;
(iv) Motors of all kinds;
(v) Tires;
(vi) Batteries;
(vii) Boats;
(viii) Electrical appliances;
(ix) Electrical devices;
(x) Furniture;
(xi) Rugs, including carpets;
(xii) Flooring;
(xiii) Upholstery;
(xiv) Household appliances;
(xv) Television and radio;
(xvi) Jewelry;
(xvii) Watches;
(xviii) Clocks;
(xix) Engineering instruments;
(xx) Medical instruments and surgical instruments;
(xxi) Machinery of all kinds;
(xxii) Bicycles;
(xxiii) Office machines;
(xxiv) Office equipment;
(xxv) Shoes;
(xxvi) Tin and sheet metal;
(xxvii) Mechanical tools; and
(xxviii) Shop equipment.
(B) See also 26 CAR §§ 30-519, 30-1103, 30-1115, and 30-1141.
(2) The tax applies to the enumerated services performed on the items listed in 26 CAR § 30-502(a)(1) whether or not the items are affixed to real property.
(b) Additional services. Additional services subject to gross receipts tax include:
(1) Service of providing transportation or delivery of money, property, or valuables by armored car;
(2) Service of pool cleaning and servicing;
(3) Pager services;
(4) Telephone answering services;
(5) Service of parking a motor vehicle or allowing a motor vehicle to be parked;
(6) Service of storing a motor vehicle;
(7) Service of storing furs;
(8) Service of providing indoor tanning at a tanning salon;
(9) Lawn care and landscaping services (see 26 CAR § 30-504);
(10) Service of providing cleaning or janitorial work (see 26 CAR § 30-506);
(11) Wrecker and towing services (see 26 CAR § 30-507);
(12) Collection and disposal of solid wastes (see 26 CAR § 30-508);
(13) Cleaning of parking lots and gutters (see 26 CAR § 30-509);
(14) Dry cleaning and laundry services and industrial laundry services (see 26 CAR § 30-510);
(15) Mini-warehouse and self-storage rental services (see 26 CAR § 30-511);
(16) Body piercing, tattooing, and electrolysis services (see 26 CAR § 30-512);
(17) Pest control services (see 26 CAR § 30-513);
(18) Security and alarm monitoring services (see 26 CAR § 30-514);
(19) Boat storage and docking fees (see 26 CAR § 30-515);
(20) Furnishing of camping spaces or trailer spaces at public or private campgrounds (see 26 CAR § 30-516);
(21) Locksmith services (see 26 CAR § 30-517); and
(22) Pet grooming and kennel services (see 26 CAR § 30-518).
(c) Dues and fees. Dues and fees paid to health spas, health clubs, and fitness clubs are subject to gross receipts tax.
(d) Service contracts, maintenance agreements, and extended warranties.
(1)(A) Sales tax shall apply to the gross receipts derived from the sale of contracts, including service contracts, maintenance agreements, and extended warranties that in whole or in part provide for the future performance of or payment for services that are subject to gross receipts tax, including home warranty contracts that provide for repair or replacement of appliances, devices, machinery, or any other items included in the contract.
(B) The seller of the contract must collect and remit the tax due on the sale of the contract except when the contract is sold simultaneously with a motor vehicle in which case the purchaser of the vehicle shall pay sales tax on the purchase of the contract at the time of vehicle registration.
(2) Sales tax shall not be collected from the consumer on labor or parts used in the performance of services covered by a taxable service contract, maintenance agreement, or extended warranty or home warranty contract.
Example 1: Consumer purchases a new vehicle and an extended
warranty at the same time. When customer registers the vehicle,
he or she will pay sales tax on the purchase price of the vehicle and
the purchase price of the extended warranty. Service and parts
provided under the warranty will not be subject to sales tax.
Example 2: Consumer purchases a new computer and a service
contract. The seller of the computer collects sales tax on the purchase
price of the computer and the service contract. Service and parts
provided under the warranty will not be subject to sales tax.
Example 3: Consumer purchases a home warranty contract in
connection with the purchase of a residence. The purchase price
of the home warranty contract may be collected with the closing
costs of the real estate transaction or may be paid directly by the
real estate purchaser to the person or entity designated by the seller
of the contract. The seller of the contract, or the seller’s designated
agent, collects sales tax on the purchase price of the home warranty
contract. Labor and tangible personal property provided under the
warranty will not be subject to sales tax.
(3) If the seller of a taxable contract allows the purchaser to pay for the contract in monthly or other periodic installments, then the seller may report and remit sales tax on the periodic payments.
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<p class="cs705B9938"><span class="cs28647B32"> </span><span class="cs23477F2D">26 CAR § 30-502. Services subject to tax — Taxable services. </span></p><p class="cs705B9938"><span class="cs28647B32"> (a) </span><span class="cs23477F2D">Services.</span></p><p class="cs705B9938"><span class="cs28647B32"> (1)(A) The service of initial installation, alteration, addition, cleaning, refinishing, replacement, and repair of the following items of tangible personal property are subject to the tax: </span></p><p class="cs705B9938"><span class="cs28647B32"> (i) Motor vehicles; </span></p><p class="cs705B9938"><span class="cs28647B32"> (ii) Aircraft; </span></p><p class="cs705B9938"><span class="cs28647B32"> (iii) Farm machinery and farm implements; </span></p><p class="cs705B9938"><span class="cs28647B32"> (iv) Motors of all kinds; </span></p><p class="cs705B9938"><span class="cs28647B32"> (v) Tires; </span></p><p class="cs705B9938"><span class="cs28647B32"> (vi) Batteries; </span></p><p class="cs705B9938"><span class="cs28647B32"> (vii) Boats; </span></p><p class="cs705B9938"><span class="cs28647B32"> (viii) Electrical appliances; </span></p><p class="cs705B9938"><span class="cs28647B32"> (ix) Electrical devices; </span></p><p class="cs705B9938"><span class="cs28647B32"> (x) Furniture; </span></p><p class="cs705B9938"><span class="cs28647B32"> (xi) Rugs, including carpets; </span></p><p class="cs705B9938"><span class="cs28647B32"> (xii) Flooring; </span></p><p class="cs705B9938"><span class="cs28647B32"> (xiii) Upholstery; </span></p><p class="cs705B9938"><span class="cs28647B32"> (xiv) Household appliances; </span></p><p class="cs705B9938"><span class="cs28647B32"> (xv) Television and radio; </span></p><p class="cs705B9938"><span class="cs28647B32"> (xvi) Jewelry; </span></p><p class="cs705B9938"><span class="cs28647B32"> (xvii) Watches; </span></p><p class="cs705B9938"><span class="cs28647B32"> (xviii) Clocks; </span></p><p class="cs705B9938"><span class="cs28647B32"> (xix) Engineering instruments; </span></p><p class="cs705B9938"><span class="cs28647B32"> (xx) Medical instruments and surgical instruments; </span></p><p class="cs705B9938"><span class="cs28647B32"> (xxi) Machinery of all kinds; </span></p><p class="cs705B9938"><span class="cs28647B32"> (xxii) Bicycles; </span></p><p class="cs705B9938"><span class="cs28647B32"> (xxiii) Office machines; </span></p><p class="cs705B9938"><span class="cs28647B32"> (xxiv) Office equipment; </span></p><p class="cs705B9938"><span class="cs28647B32"> (xxv) Shoes; </span></p><p class="cs705B9938"><span class="cs28647B32"> (xxvi) Tin and sheet metal; </span></p><p class="cs705B9938"><span class="cs28647B32"> (xxvii) Mechanical tools; and </span></p><p class="cs705B9938"><span class="cs28647B32"> (xxviii) Shop equipment. </span></p><p class="cs705B9938"><span class="cs28647B32"> (B) See also 26 CAR §§ 30-519, 30-1103, 30-1115, and 30-1141.</span></p><p class="cs705B9938"><span class="cs28647B32"> (2) The tax applies to the enumerated services performed on the items listed in 26 CAR § 30-502(a)(1) whether or not the items are affixed to real property.</span></p><p class="cs705B9938"><span class="cs28647B32"> (b) </span><span class="cs23477F2D">Additional services.</span><span class="cs28647B32"> Additional services subject to gross receipts tax include: </span></p><p class="cs705B9938"><span class="cs28647B32"> (1) Service of providing transportation or delivery of money, property, or valuables by armored car; </span></p><p class="cs705B9938"><span class="cs28647B32"> (2) Service of pool cleaning and servicing; </span></p><p class="cs705B9938"><span class="cs28647B32"> (3) Pager services; </span></p><p class="cs705B9938"><span class="cs28647B32"> (4) Telephone answering services; </span></p><p class="cs705B9938"><span class="cs28647B32"> (5) Service of parking a motor vehicle or allowing a motor vehicle to be parked; </span></p><p class="cs705B9938"><span class="cs28647B32"> (6) Service of storing a motor vehicle; </span></p><p class="cs705B9938"><span class="cs28647B32"> (7) Service of storing furs; </span></p><p class="cs705B9938"><span class="cs28647B32"> (8) Service of providing indoor tanning at a tanning salon; </span></p><p class="cs705B9938"><span class="cs28647B32"> (9) Lawn care and landscaping services (see 26 CAR § 30-504); </span></p><p class="cs705B9938"><span class="cs28647B32"> (10) Service of providing cleaning or janitorial work (see 26 CAR § 30-506); </span></p><p class="cs705B9938"><span class="cs28647B32"> (11) Wrecker and towing services (see 26 CAR § 30-507); </span></p><p class="cs705B9938"><span class="cs28647B32"> (12) Collection and disposal of solid wastes (see 26 CAR § 30-508); </span></p><p class="cs705B9938"><span class="cs28647B32"> (13) Cleaning of parking lots and gutters (see 26 CAR § 30-509); </span></p><p class="cs705B9938"><span class="cs28647B32"> (14) Dry cleaning and laundry services and industrial laundry services (see 26 CAR § 30-510); </span></p><p class="cs705B9938"><span class="cs28647B32"> (15) Mini-warehouse and self-storage rental services (see 26 CAR § 30-511); </span></p><p class="cs705B9938"><span class="cs28647B32"> (16) Body piercing, tattooing, and electrolysis services (see 26 CAR § 30-512); </span></p><p class="cs705B9938"><span class="cs28647B32"> (17) Pest control services (see 26 CAR § 30-513); </span></p><p class="cs705B9938"><span class="cs28647B32"> (18) Security and alarm monitoring services (see 26 CAR § 30-514); </span></p><p class="cs705B9938"><span class="cs28647B32"> (19) Boat storage and docking fees (see 26 CAR § 30-515); </span></p><p class="cs705B9938"><span class="cs28647B32"> (20) Furnishing of camping spaces or trailer spaces at public or private campgrounds (see 26 CAR § 30-516); </span></p><p class="cs705B9938"><span class="cs28647B32"> (21) Locksmith services (see 26 CAR § 30-517); and </span></p><p class="cs705B9938"><span class="cs28647B32"> (22) Pet grooming and kennel services (see 26 CAR § 30-518).</span></p><p class="cs705B9938"><span class="cs28647B32"> (c) </span><span class="cs23477F2D">Dues and fees.</span><span class="cs28647B32"> Dues and fees paid to health spas, health clubs, and fitness clubs are subject to gross receipts tax.</span></p><p class="cs705B9938"><span class="cs28647B32"> (d) </span><span class="cs23477F2D">Service contracts, maintenance agreements, and extended warranties. </span></p><p class="cs705B9938"><span class="cs28647B32"> (1)(A) Sales tax shall apply to the gross receipts derived from the sale of contracts, including service contracts, maintenance agreements, and extended warranties that in whole or in part provide for the future performance of or payment for services that are subject to gross receipts tax, including home warranty contracts that provide for repair or replacement of appliances, devices, machinery, or any other items included in the contract. </span></p><p class="cs705B9938"><span class="cs28647B32"> (B) The seller of the contract must collect and remit the tax due on the sale of the contract except when the contract is sold simultaneously with a motor vehicle in which case the purchaser of the vehicle shall pay sales tax on the purchase of the contract at the time of vehicle registration.</span></p><p class="cs705B9938"><span class="cs28647B32"> (2) Sales tax shall not be collected from the consumer on labor or parts used in the performance of services covered by a taxable service contract, maintenance agreement, or extended warranty or home warranty contract.</span></p><p class="cs705B9938"><span class="cs28647B32"> </span></p><p class="cs705B9938"><span class="cs23477F2D"> Example 1: </span><span class="cs28647B32">Consumer purchases a new vehicle and an extended <br/> warranty at the same time. When customer registers the vehicle, <br/> he or she will pay sales tax on the purchase price of the vehicle and <br/> the purchase price of the extended warranty. Service and parts <br/> provided under the warranty will not be subject to sales tax.</span></p><p class="cs705B9938"><span class="cs28647B32"> </span></p><p class="cs705B9938"><span class="cs23477F2D"> Example 2:</span><span class="cs28647B32"> Consumer purchases a new computer and a service <br/> contract. The seller of the computer collects sales tax on the purchase <br/> price of the computer and the service contract. Service and parts <br/> provided under the warranty will not be subject to sales tax.</span></p><p class="cs705B9938"><span class="cs28647B32"> </span></p><p class="cs705B9938"><span class="cs23477F2D"> Example 3:</span><span class="cs28647B32"> Consumer purchases a home warranty contract in <br/> connection with the purchase of a residence. The purchase price <br/> of the home warranty contract may be collected with the closing <br/> costs of the real estate transaction or may be paid directly by the <br/> real estate purchaser to the person or entity designated by the seller <br/> of the contract. The seller of the contract, or the seller’s designated <br/> agent, collects sales tax on the purchase price of the home warranty <br/> contract. Labor and tangible personal property provided under the <br/> warranty will not be subject to sales tax.</span></p><p class="cs705B9938"><span class="cs28647B32"> </span></p><p class="cs705B9938"><span class="cs28647B32"> (3) If the seller of a taxable contract allows the purchaser to pay for the contract in monthly or other periodic installments, then the seller may report and remit sales tax on the periodic payments.</span></p>
"Source: Ark. Code Ann. §§ 26-52-301(3); 26-52-301(6); 26-52-301(7); 26-52-316"