Rate on Natural Gas and Electricity Used by Manufacturers Reduced
The state sales and use tax rate on natural gas and electricity used by manufacturers directly in manufacturing will be reduce to 1% starting July 1, 2014 and then reduced to 0% starting July 1, 2015.
Such sales of natural gas and electricity to manufacturers will remain subject to the 0.125% excise tax under Amendment 75 to the Arkansas Constitution and to the temporary 0.5% excise tax under Amendment 91, effective July 1, 2013.
ELECTRIC POWER GENERATOR
The state sales and use tax rate on natural gas and electricity used by an electric power generator to operate a new or existing facility using combined-cycle gas turbine technology will decrease to 1% starting January 1, 2015 from the 2014 rate of 2.65%