Exemptions from tax — Newspapers, publications, and billboards

# (a) Definitions

(a) Definitions. As used in this section:

(1) “Advertising space” means:

(A) Space located within the body of a newspaper or publication containing advertisements that are printed concurrently with the news, articles, features, or other attractions in the newspaper or publication; and

(B) The classified advertising section;

(2) “Advertising supplement” means a publication in sheet form, other than the usual classified advertising section of a newspaper, printed in Arkansas by a newspaper publisher or job printer, containing advertising only and that is not physically attached to a newspaper, but which may be distributed with a newspaper or by other means;

(3) “Billboard advertising services” means any and all services rendered in connection with the rental or lease of advertising space on a structure that is affixed to the land for the purpose of posting advertising messages;

(4) “Newspaper” means a publication in sheet form containing reports of current events and articles of general interest to the public, published regularly in short intervals such as daily, weekly, or bi-weekly, and intended for general circulation;

(5) “Publication” means any pamphlet, magazine, journal, or periodical, other than a newspaper, designed for the information or entertainment of the general public or any segment thereof; and

(6) “Regular subscription” means the purchase by advance payment of a specified number (two (2) or more) of issues of a publication over a certain period of time and delivered to the subscriber by mail or otherwise.

(b) The gross receipts or gross proceeds derived from the sale of newspapers are exempt from the tax.
(c)(1) The gross receipts or gross proceeds derived from the sale or rental of advertising space in newspapers and publications are exempt from the tax.

(2) Advertising supplements are not exempt from the tax.

(3) The printer, whether a newspaper publisher or job printer, must collect the tax on the gross receipts or gross proceeds derived from the sale of the advertising supplements to the advertiser, even though the advertising supplement may be distributed by insertion in a newspaper for the convenience of the advertiser.
(d)(1) The gross receipts or gross proceeds derived from the sale of advertising space in advertising supplements or other publications distributed free of charge are exempt from tax.

(2) The printer, whether a newspaper publisher or job printer, must collect tax on the gross receipts or gross proceeds derived from the sale of the advertising supplements to the distributor.

(3) If the printer is also the distributor, the printer should pay tax on the retail price that the printer would have charged to a customer who purchased the advertising supplements or publications from the printer in an arm’s-length transaction.

(e) The gross receipts or gross proceeds derived from the sale of billboard advertising services are exempt from the tax.

(f) The gross receipts or gross proceeds derived from the sale of any publication through regular subscription are exempt.

(g) The gross receipts or gross proceeds derived from the sale of any nonsubscription magazines or publications other than newspapers are subject to the tax.

(h) The gross receipts or gross proceeds derived from the sale of machinery and equipment to newspaper publishers are exempt from the tax if they satisfy the requirements set forth in 26 CAR § 30-1136.