Exemptions from tax — Dairy, livestock (including domesticated fish), and poultry products

(a) The gross receipts or gross proceeds derived from the sale of baby chickens in Arkansas are exempt from the tax.
(b)(1) The gross receipts or gross proceeds derived from the sale of livestock, including domesticated fish, by producers at special livestock sales are exempt from the tax.

(2) The term “livestock” includes:

(A) Cattle;

(B) Horses;

(C) Mules;

(D) Sheep;

(E) Hogs; and

(F) Any other animals kept for commercial use or profit.

(c) The gross receipts or gross proceeds derived from the sale of dairy products by a dairy product producer who owns fewer than six (6) dairy cows are exempt from the tax if the:

(1) Dairy products are produced in Arkansas;

(2) Dairy products are sold by the producer directly to the consumer; and

(3) Sale is not from an established business located off the farm.

(d) The gross receipts or gross proceeds derived from sale of poultry products are exempt from the tax if the poultry or poultry products are:

(1) Produced in Arkansas; and

(2) Sold on the producer’s farm and not from an established business.