Tax Applies to Mowers and Chainsaws Not Used Directly in Farming in Arkansas

Wednesday, January 2nd, 2019

 
 
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Arkansas
General

The Arkansas Department of Finance and Administration recently ruled that sales tax applies to a lawn mower and chainsaw used for general farm maintenance. The taxpayer was a farmer in Arkansas that bought a lawn mower and chainsaw. The equipment was utilized for business and personal use, but was not used for the purpose of producing food. The taxpayer claimed the farming exemption on the purchase. However, when an audit was conducted on this transaction, it was determined that the purchases were taxable.

Farm equipment and machinery means property that is used exclusively and directly in farming. "Farming" means the agricultural production of food or fiber as a business. The ruling determined that the lawn mower and chainsaw were not used directly to produce food or fiber. As a result, the equipment was found to be taxable.

https://www.ttrus.com/Mowers_and_Chainsaws


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TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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