Ark. Code Ann. § 26-52-307 (2020)
Contractors as consumer users
History. Acts 1941, No. 386, § 3; 1945, No. 64, § 1; 1959, No. 260, § 1; 1977, No. 500, § 1; A.S.A. 1947, § 84-1903; Acts 1995, No. 835, § 3; 2017, No. 141, § 19.
Amendments. The 2017 amendment, in (a)(1), inserted “specified digital products, digital codes” and substituted “a contract” for “any contract”.
Effective Dates. Acts 2017, No. 141, § 63, as amended by Acts 2017, No. 596, § 1: “Sections 2 through 61 of this act are effective for tax years beginning on and after January 1, 2018.”
Case Notes
Constitutionality.
Collection of sales tax on sale of materials by contractor to builder involved in contract made prior to effective date of sales tax law was not unconstitutional as impairing the obligation of the contract. Wiseman v. Gillioz, 192 Ark. 950, 96 S.W.2d 459 (1936) (decision under prior law).
Federal Contracts.
Equipment purchased by private contractors as agents of the U.S. Navy under a contract with the Navy to build an ammunition depot was not subject to the Arkansas sales tax. Parker v. Kern-Limerick, Inc., 221 Ark. 439, 254 S.W.2d 454 (1953), rev'd, Kern-Limerick, Inc. v. Scurlock, 347 U.S. 110, 74 S. Ct. 403, 98 L. Ed. 546 (1954); See also, Parker v. Kern-Limerick, Inc., 223 Ark. 464, 266 S.W.2d 298 (1954).
Materials.
General Assembly intended to impose the tax on materials, such as gravel to be used in the construction of a temporary road to an oil-extraction project, at the time of the sale between the supplier and the contractor, but the materials cannot again be taxed when the contractor bills his customers for constructing the roads on the sites. Ragland v. Dumas, 292 Ark. 515, 732 S.W.2d 119 (1987).
Cited: U-Drive-'Em Serv. Co. v. Hardin, 205 Ark. 501, 169 S.W.2d 584 (1943); Comm'r of Revenues v. Belote, 226 Ark. 295, 289 S.W.2d 665 (1956); Republic Steel Corp. v. McCastlain, 240 Ark. 979, 403 S.W.2d 90 (1966); Pledger v. Featherlite Precast Corp., 308 Ark. 124, 823 S.W.2d 852.