3/20/2014 at 4:02 p.m.
Farmers who do on-farm grain storage or drying may now fill out paperwork to gain a sales tax exemption for certain utilities. Act 1401 of 2013 provides an exemption from state and local sales taxes for electricity, natural gas and liquefied petroleum gas used by qualifying grain drying and storage facilities beginning July 1, 2014. The bill that created the exemption was sponsored by State Sen. Jonathan Dismang of Searcy during the 2013 legislative session.
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 grain drying and storage facilities and for other types of structures, facilities or equipment are not eligible for the exemption. Before the exemption is allowed, those claiming the exemption must obtain a certificate from DFA to provide to the utility supplier. The exemption does not
include utilities used in irrigation. Dyed diesel is taxed at a per-gallon rate thanks to Act 87 of 2007, also supported by Arkansas Farm Bureau Federation.
Here is the form (Right click, "save link" locally to your computer, then open with Acrobat Reader. It will not open in an internet browser).
The file is also available at http://www.arfb.com/legislation-regulations/issue_update/default.aspx