(1)    Beginning January 1, 2008, sellers of timber harvesting equipment will begin collecting state and local sales taxes on the full sales price of the equipment.  Sellers will no longer apply the $50,000 exemption amount to sales of the equipment and will also no longer apply local sales tax caps.  State and local sales taxes are to be collected at the full rate on the total invoiced amount.

Beginning January 1, 2008, the exemption provide by Arkansas Code Annotated Section 26-52-431 for the first $50,000 of the purchase price from the sale of machinery and equipment and related attachments that are used in the harvesting of timber will be administered as a rebate directly to the purchaser of the equipment by the Department of Finance and Administration (DF & A)  The seller of the equipment is to collect state and local sales tax on the total sales price of the equipment and DF & A will work with the purchaser for claiming the exemption benefit.  Eligible purchasers will apply for refunds of tax paid to sellers on the first $50,000 of the sales price of eligible equipment using DF & A’s Claim for Refund Form 2004-6.  Rebates of local sales tax paid to the seller on the taxable portion of the sales invoice that exceeds $2,500 (after the DF & A rebate of all state and local sales tax on the first $50,000 of the purchase) is also eligible for rebate to the purchaser.  Purchasers requesting information or needing assistance in claiming rebates should contact the Sales and Use Tax Section at (501) 682-7104.

Regarding collection of local sales tax on merchandise delivered or shipped to the customer, equipment dealers will collect the local city and county tax based on the point of delivery of the equipment. 

According to DF&A, this change was made to comply with the Streamlined Sales Tax Project requirements and to ensure that Arkansas can become a full participant in the Streamlined Sales Tax Program beginning January 1, 2008.  This change is applicable to all businesses operating in Arkansas and not just timber harvesting equipment dealers and purchasers.    


(2)    Act  637 of 2007, effective January 1, 2008, requires the State of Arkansas to create and maintain a database of all positive drug and alcohol test results, and refusals to submit a specimen for a drug or alcohol screening test.

Arkansas Code Annotated Section 27-23-205 requires employers of commercial drivers to report any positive alcohol test results, or refusal to provide a specimen for an alcohol test, to the Office of Driver Services within three (3) business days.  Medical review officers are required to submit a valid positive drug test result, the refusal to provide a specimen for a drug test, or the submission of an adulterated, diluted, or substituted specimen for a drug test performed, to the Office of Driver Services within three (3) business days.

Arkansas Code Annotated Section 27-23-207 requires employers to request information from the Commercial Driver Alcohol and Drug Testing Database for each employee who is employed in, or has submitted an application for employment for a safety sensitive transportation job for which drug and alcohol tests are required under the Federal Motor Carrier Safety Regulations, 49 C.F.R Section 350-399, as in effect on January 1, 2007.  Information in the Commercial Driver Alcohol and Drug Testing Database is confidential and shall only be released with written consent from the employee.

    Contact Anita Gottsponer, Driver Services, DF&A at (501) 682-7211 for information and assistance.