§ 15-4-3105 - Sales and use tax refund. - Arkansas Statutes

15-4-3105. Sales and use tax refund.

(a) (1) An application for a sales and use tax refund under this subchapter shall be filed with the Arkansas Economic Development Commission and shall include an endorsement resolution from the governing authority of a municipality or county where the nonprofit organization is or will be located.

(2) The resolution shall:

(A) Endorse the applicant's participation in the sales and use tax refund program; and

(B) Authorize the refund of any sales and use tax levied by the municipality or county.

(b) (1) The Director of the Department of Finance and Administration shall authorize a sales and use tax refund of state and local sales and use taxes, excepting the sales and use tax dedicated to the Educational Adequacy Fund, as authorized by 19-5-1227, and the Conservation Tax Fund, as authorized by 19-6-484, on the purchases by the nonprofit organization of the material used in the construction of a building or buildings or any addition, modernization, or improvement for housing any new or expanding nonprofit organization and machinery and equipment to be located in or in connection with a building.

(2) To qualify for the sales and use tax refund under this section, a qualified nonprofit organization shall spend in excess of two hundred fifty thousand dollars ($250,000) on buildings, machinery, and equipment in the new or improved facility.

(3) A refund shall not be authorized for:

(A) Routine operating expenditures; or

(B) The purchase of items previously purchased as part of a project under this section unless the items previously purchased are necessary for the implementation or completion of the project.

(c) Subject to the approval of the commission, a program participant may make changes in a project by written amendment to the project plan filed with the commission, provided that the amendment complies with 15-4-3107(h)(2).

(d) All claims for sales and use tax refunds under this section shall be denied unless they are filed with the Revenue Division of the Department of Finance and Administration within three (3) years from the date of the qualified purchase or purchases.