Certain Utilities Exempt

ARKANSAS – Sales of electricity, liquefied petroleum gas and natural gas used by a qualifying agricultural structure and by qualifying aquaculture or horticulture equipment are exempt, starting January 1, 2014, from sales and use tax. A utility cover by this exemption must be separately metered.

Qualifying agricultural structure means:
• A poultry or livestock facility used for commercial production;
• A cattle and dairy facility;
• A greenhouse used for commercial production.

Qualifying aquaculture or horticulture equipment means
• 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;
• A holding and sorting tank used in a commercial aquaculture operation.

Additional or alternate requirements may be established by the Department of Finance and Administration for metering utilities. A seller of a utility may be required to certify that the taxpayer is eligible for the exemption.

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