Arkansas Gift Store Owed Tax on Wrapping Paper and Bags

Thursday, March 24th, 2016

 
 
A wrapping paper station.
Share
Link
Arkansas
Retail

The Arkansas Department of Finance and Administration ("Department") ruled that a gift store owed tax on wrapping materials.

The taxpayer was a gift store that sold jewelry, watches, and other gifts. It purchased bags, wrapping paper, tissue paper, ribbon, jewelry pads, risers, and liners. It used these items to wrap and package the gifts its customers bought.

Arkansas does not tax items purchased for resale in the regular course of business. However, the Department ruled that the gift store did not resell the wrapping materials. The store did not charge separately for the materials. It also did not allocate the cost of materials to certain items of merchandise. As a result, the store used the materials - it did not resell them.

https://www.ark.org/dfa-act896/index.php/api/document/download/16-014.pdf


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

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.

Washington Provides Guidance on Lodging Tax for Online...

Friday, October 12th, 2018 -The Washington Department of Revenue released updated guidance that provides tax reporting information for bed...

Economic Nexus in West Virginia

Wednesday, October 10th, 2018 -The West Virginia State Tax Department announced that it will require remote sellers to begin collecting sales...

Idaho Provides Guidance on the Exemption for Medical...

Monday, October 8th, 2018 -The Idaho State Tax Commission recently released guidance that explains Idaho's sales and use tax laws for buy...

Arkansas Does Not Follow Federal Law on Foreign Income

Friday, October 5th, 2018 -The Arkansas Department of Taxation and Finance recently released an opinion that says the state does not conf...

South Dakota Provides Guidance on the Taxation of Churches

Wednesday, October 3rd, 2018 -The South Dakota Department of Revenue (DOR) recently released guidance that provides information about how sa...

Mowing Services to Keep Right of Way Clear Taxable in...

Monday, October 1st, 2018 -The Arkansas Department of Finance and Administration recently ruled that lawn-mowing services to keep a right...