Farmers Need to Certify Utility Meters for Sales Tax Exemption
Farmers who are eligible for the sales tax exemption on utilities detailed in Act 1441 of 2013 (HB 1039) that was passed during the 2013 legislative session will need to get their utility accounts and meters certified by the Arkansas Department of Finance and Administration in order to receive their exemption. Farmers will submit their paperwork to DF&A for certification. The agency will then send farmers a certificate that farmers provide to their utility companies. The exemption starts January 1, 2014 but utility providers will not apply the exemption without proper documentation.
DF&A’s goal is to start sending certificates in late November or early December.
Act 1441 of 2013 provides an exemption from state and local sales taxes for electricity, natural gas, and liquefied petroleum gas used by qualifying agricultural structures and qualifying aquaculture and horticulture equipment beginning January 1, 2014.
The eligible utility must be separately metered and used only for the purpose of the exemption. If a utility is sold for any other purpose, it will not be eligible for the exemption. Multiple use meters that provide the utility services for both eligible farm structures and facilities and for other types of structures, facilities or equipment are not eligible for the exemption. Before the exemption is allowed, the farmer seeking the exemption must obtain a certificate from DFA to provide to the utility supplier.
Fact Sheet on who qualifies for Act 1441
The forms to obtain the necessary certificate are linked here.
(Save PDF form locally to your computer then open with Adobe Reader, it will not open in an internet browser)
To complete the forms, you will need the federal NAICS code for your business. We have prepared an abbreviated list of NAICS codes to help. If you do not see your code it can be found at http://www.census.gov/cgi-bin/sssd/naics/naicsrch?chart_code=11&search=2012 NAICS Search
Upon completion, they need to be returned to Sales and Use Tax Section, P O Box 3566, Little Rock, AR 72203-3566
If you have questions about the forms, you can call DF&A at 501-682-7105 or email them through the website www.dfa.arkansas.gov
If a farmer does not have their meters certified by January 1, 2014,
there are ways to reclaim those tax dollars. This process applies only
to Act 1441. Farmers eligible for Act 1401 (sales tax exemption for
utilities used in grain storage and drying) will complete a similar
process next spring. Act 1401 does not take effect until July 1, 2014.
DF&A does not have that paperwork quite ready yet and is not ready
to process those requests.
WRRDA passes the U.S. House
H.R. 3080, the Water Resources Reform and Development Act (WRRDA) of 2013 passed the House by a strong bipartisan vote of 417 to 3 on October 24.
Included in H.R. 3080 are provisions that reform the project delivery processes of the U.S. Army Corps of Engineers, create a prioritization of authorized improvements based upon risk of failure and economic return, and provide needed adjustments to the Inland Waterways Trust Fund (IWTF).
WRRDA sets target expenditures from the Harbor Maintenance Trust Fund (HMTF), increasing each year so that by Fiscal Year 2020 and beyond, no less than 80 percent of the funds collected go to operation and maintenance activities.
H.R. 3080 authorizes about $8 billion in spending for 23 projects, but deauthorizes around $12 billion in projects authorized before the 2007 WRDA bill. Environmental reviews are also streamlined to a three-year limit and a $3 million cap for Army Corps’ feasibility studies.
Passage of a WRRDA bill is a strategic action issue for Farm Bureau. Next step is to conference with the Senate, who in May passed their version of the Water Resources Development Act on an 83-14 vote.
Notification Requirements of the Affordable Care Act
The Affordable Care Act requires all employers with more than
$500,000 in annual gross receipts to provide their employees with an
“Exchange Notice” by October 1. The notice must be provided to all
current and new full-time and part-time employees, including H2A
workers, and seasonal employees. This notice is required regardless of
whether or not an employer offers health insurance to their employee(s).
The fact sheet below has been developed for farm employers, offering
guidance on how to comply with this new and ongoing requirement. Also
below are sample forms that employers can use to provide the required
With the pending deadline quickly approaching, we wanted to take this
opportunity to remind our members of this requirement. More information
is also available through the U.S. Department of Labor.
Fact Sheet for Farm Employers.pdf
Sample Notice Form for Employers NOT Providing Coverage.pdf
Sample Notice Form for Employers Providing Coverage.pdf
Sample Notice No. 3
Legislative Summary for the first session of the Eighty-ninth General Assembly
The 89th General Assembly wrapped up officially on May 17. Farm Bureau has prepared a summary on issues impacting agriculture and rural Arkansas. The legislature dealt with a huge volume of bills and issues so the summary is in no way comprehensive. Many of the issues that were in the headlines are not covered in the summary simply because they were adequately covered elsewhere.
Arkansas Farm Bureau Legislative Summary
The legislature passed a number of tax cuts during the 2013 session. We have prepared a spreadsheet that lists the agriculture related cuts and their effective dates.
Agriculture Tax Cuts.pdf
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