Amount and nature of tax

(a)(1) The tax levied by the Arkansas Compensating Tax Act of 1949, Arkansas Code § 26-53-101 et seq., is six percent (6%) of the sales price of tangible personal property or taxable services purchased for storage, use, consumption, or distribution in this state.

# (2) Manufacturing utilities

(2) Manufacturing utilities.

(A) As of July 1, 2008, the state tax rate on natural gas or electricity purchased by a manufacturer for use directly in the manufacturing process is four percent (4%) of the sales price.

(B) From July 1, 2007, through June 30, 2008, the state tax rate on natural gas or electricity purchased by a manufacturer for use directly in the manufacturing process was four and one-half percent (4 1/2%) of the sales price.

(C) See 26 CAR pt. 32, Reduced Sales Tax Rate for Natural Gas or Electricity Used Directly in the Manufacturing Process.

# (3) Food and food ingredients

(3) Food and food ingredients.

(A) As of July 1, 2007, the state tax rate on food and food ingredients purchased for storage, use, consumption, or distribution in this state is three percent (3%) of the sales price.

(B) See 26 CAR pt. 31, Special Rules for Sales of Food and Food Ingredients and Prepared Food.
(b)(1) The tax shall be collected from every person in this state for the privilege of storing, using, consuming, or distributing any article of tangible personal property or taxable services in this state.

(2) The tax will not apply with respect to the storage, use, consumption, or distribution of any article of tangible personal property or taxable services purchased, produced, or manufactured outside this state until the transportation of such article has finally come to rest within this state or until such article has become comingled with the general mass of property of this state.