Special events — Exception to isolated sales exemption

(a)(1) The isolated sale exemption does not apply to items sold at special events.

(2) Promoters or organizers of special events must register with the Department of Finance and Administration and obtain either a sales tax permit (if they do not already have one) or a sales tax reporting number.
(3)(A) The department will then provide the promoter with packets of materials that are to be handed out to each vendor at the beginning of the special event.

(B) The packets will include:

(i) A sales tax report schedule;

(ii) A list of cities and counties with local sales and use tax (along with the applicable tax rates); and

(iii) An envelope for sales tax remittance.
(4)(A) Vendors that do not have a retail sales tax permit must collect sales tax on all sales and report and pay the tax to the promoter at the end of the event.

(B) The promoter should always make certain that he or she has provided each vendor with his or her name and address.

(C) The vendor must make his or her check payable to the department and place the check, along with the reporting form, into the envelope provided by the promoter.

(D) The envelope is then turned in to the promoter who will forward the report and payment to the department by the twentieth of the month following the month in which the event ends.

(b) Special event vendors who hold sales tax permits will continue to report their sales to the Sales and Use Tax Section and by providing their permit number to the promoter will not be required to report and pay the tax to the promoter.
(c)(1) Vendors who are a church or nonprofit charitable organization are not required to collect the tax under this provision.

(2) However, charitable organizations whose sales compete with for-profit businesses are required to collect the tax.

(3) See 26 CAR § 30-1128(c).

# (d) Definitions

(d) Definitions. As used in this section:

(1) “Promoter” or “organizer” means a person who organizes or promotes a special event that results in the rental, occupation, or use of any structure, lot, tract of land, motor vehicle, sample or display case, table, or any other similar items for the exhibition and sale of tangible personal property by special events vendors;
(2)(A) “Special event” means an entertainment, amusement, recreation, or marketing event that occurs at a single location on an irregular basis and where tangible personal property is sold.

(B) Such special events include:

(i) Auto shows;

(ii) Boat shows;

(iii) Gun shows;

(iv) Knife shows;

(v) Craft shows;

(vi) Flea markets;

(vii) Carnivals;

(viii) Circuses;

(ix) Bazaars;

(x) Fairs;

(xi) Art; or

(xii) Other merchandise displays or exhibits.

(C) Special events do not include any county, district, or state fair or the Four States Livestock Show that has been approved, pursuant to the rules of the Arkansas Board of Animal Health, to receive state funds; and

(3) “Special event vendor” means a person making sales of tangible personal property at a special event.