• No Gross Sales Receipt Tax
  • Gross Receipts Taxes - Taxpayer ID
  • How to Calculate Gross Receipt Taxes in Arizona | …

Does a contractor offering services such as drywall, concrete, paving, etc. have to pay this gross receipts tax also on the services? Thanks!

Arkansas Sales Tax - or Gross Receipts Tax?

It imposes a gross receipts tax

The Business Income & Receipts Tax (BIRT) is based on both gross receipts and net income
You must pay the $15.00 excise tax collected from your customer to a licensed distributor with whom you have a business relationship. The sales tax is due on your total gross receipts, which includes the excise tax. You must report and pay the $9.20 in sales tax on the quarterly sales and use tax return you file with the CDTFA.

What is the Miscellaneous Gross Receipts Tax


Arkansas does not provide a deduction for incoming freight as that generally is part of the cost of goods for producing an article of commerce. The tax would be collected when the article of commerce is sold.
Arkansas is a Gross Receipts tax state and as such if the freight (outgoing to the customer) is listed on the vendor's invoice along with the item or separately billed for a taxable item, the freight is considered part of the total consideration for the item purchased or taxable service rendered.

 

What Is a Texas Gross Receipt Tax


Buddy,
Sorry for the delay in response to your question. The state of Arkansas is a Gross Receipts state which means the IN-STATE VENDOR is liable for the collection and remittance of Gross Receipts/Sales tax. The customer is NOT the taxpayer. So if you purchased the item from an IN-STATE VENDOR, it is not your problem to deal with the collection and remittance of tax.


Some cities have enacted measures requiring that cannabis businesses located in their jurisdictions pay a cannabis business tax. If you add a separate amount to your customers' invoices or receipts to cover your cannabis business tax, sales tax applies to the business tax amount.


Gross Receipts Tax - Alamogordo, New Mexico

If you are located in Arkansas and ONLY deal with in-state Dentists, then you would charge Arkansas Gross Receipts Tax on both the Repair (per Arkansas Rule GR-9) and the Freight (per Arkansas Rule GR-3 Total Consideration).

Directive 08-7: Gross Receipts-Based Taxes ..

Second, Gross Receipts Tax (commonly referred to Sales Tax) is one of a multitude of Excise Taxes imposed by the State of Arkansas. A Contractor who works on Tangible Personal Property (such as machinery of all kinds, motors of all kinds, etc) must retain a Sale for Resale Permit from the State of Arkansas.

AUDIT 44AB TURNOVER SALES GROSS RECEIPT ..

If you have collected any amount of excise tax in excess of the amount due from a retailer, you may refund the excess tax directly to the retailer. This may occur if you used the incorrect wholesale cost or mark-up rate when calculating the amount of excise tax due from a retailer in an arm's length transaction. You may claim a credit for that amount of excise tax that was collected in excess, remitted to CDTFA, and returned to the retailer on a future quarterly tax return (provided the credit is claimed on a return no later than three years from the date of the overpayment). CDTFA staff may request documentation to support the credit that is claimed on the return. Examples of documentation that are acceptable include, but are not limited to, a copy of the receipt or invoice listing the amount of excise tax collected and subsequently returned to the retailer, along with the retailer's acknowledgement that the excess tax collected was returned to him/her.

Tax Topics by Category - Tax Resources

To reiterate your question:
If I pay the sales tax (gross receipts tax) on the inventory when I purchase it, is it legal for me to not charge my customers tax on their rental payments?
SHORT ANSWER is “YES”; however, there are stipulations in the law that must be followed in order to qualify as a “long term rental”.