El enfoque de las instituciones en los estudios sobre la deuda pública

A. GENERALLY. Funeral homes or funeral directors must collect and pay the tax upon the gross receipts or gross proceeds of all sales of tangible personal property sold by them in connection with the services they offer.

B. INVOICING. Where the funeral home or funeral director separately states the charges for items of tangible personal property on his bill or invoice, then the tax should be collected and remitted on the gross receipts or gross proceeds derived from the sale of the items of tangible personal property.

C. SHIPMENT. Where a corpse is shipped by one funeral home located in Arkansas to another funeral home located in Arkansas, the tax must be collected and remitted on the gross receipts or gross proceeds derived from the sale of the casket, shipping case, shipping box and freight, by the selling funeral home. If, however, the body is shipped outside the State of Arkansas, then see GR-5 for applicable rules.

D. CONSUMERS. Funeral homes and funeral directors are considered the consumers of preparation room supplies and equipment, display room equipment, chapel furnishings and equipment, and cemetery equipment, and must pay the tax to the suppliers of these goods at the time of purchase.

E. PREPAID FUNERAL CONTRACTS.

1. When tangible personal property is sold through a pre-paid funeral plan, the funeral home or funeral director has the following options:

a. Remitting gross receipts tax when the property is provided to the customer. The tax shall be calculated at the rate in effect when the property is provided; or

b. Remitting gross receipts tax on the date the contract is purchased. The tax shall be calculated at the rate in effect when the contract is purchased.

2. If the funeral home elects to pay gross receipts tax on the date the contract is purchased, the gross receipts tax must be reported on the sales tax report for the month in which the contract is purchased. Those funeral homes who have received approval from the Director of Revenue to pay tax on a cash basis should remit the gross receipts tax as outlined in GR-78.

F. SOURCING. The state and local sales or use tax due is determined by Ark. Code Ann. § 26-52-521 and GR-76.

1. Tangible personal property sold in connection with the services offered by funeral homes and funeral directors, such as caskets, clothing, or similar items, are deemed received at the location where the remains are placed in the casket. 2. The tax applicable to the sale of burial vaults and other items purchased for

delivery is determined by the location of delivery.

Example: If the burial vault is delivered to a cemetery, then the applicable local tax is that of the cemetery location.

GR-23. RADIO, VIDEO AND TELEVISION TAPES AND FILMS: Retail sales

of radio, video and television tapes and films containing commercial or other messages, including CDs, DVDs, and any digital image media, are subject to the tax. Producers must collect and remit the tax from their clients or customers on the total receipts from the production of tapes, films, and other such media without deducting any production costs attributable to the tapes, films, or media. The sale of a tape, film, or media is complete when the client is billed, even though the seller may retain possession of the tape, film, or media, or may deliver it directly to a radio or television station for the convenience of the client. The tax does not apply to the sale of broadcasting time, or to any other service which does not contribute to the production of an article of tangible personal property by the seller, nor does it apply to a tape, film, or media prepared by an advertising agency for its client as part of an advertising campaign. (See GR-46.)

Example 1: Producer is directed to videotape one or more events, sites, persons, or other occurrence. Producer delivers the videotape to its customer. Producer must collect tax on the total amount of the consideration that it receives from the customer for the videotape.

Example 2: Producer is directed to videotape a commercial and deliver the tape to a television station for broadcast. Producer does not otherwise assist the customer in planning and implementing the advertising program of which the videotaped commercial is a part. Producer must collect tax on the total consideration it receives for the videotape.

Source: Ark. Code Ann. § 26-52-301

GR-24. SPECIAL RULES FOR FUNDRAISING AND OTHER INFREQUENT

SALES:

A. PTA/PTOs or OTHER SCHOOL ORGANIZATIONS. A PTA/PTO or other school organization that conducts fundraising activities must pay tax on purchases for resale but does not have to collect tax on the sales of the items. However, if the vendor provides order forms that are distributed to the students and the students take orders for the vendor, the vendor is responsible for sales tax on the sales made by the students. The students are permitted to collect tax on the vendor’s behalf. However, if the students do not collect the tax for the vendor, the vendor must remit the total tax due to the state. Tax is due on the gross receipts received by the students from the purchaser.

B. EXEMPT ORGANIZATIONS. Exempt organizations may purchase items exempt from tax. For a list of organizations that are statutorily exempt from tax on their purchases, see GR-31. Exempt organizations are not specifically exempt from tax on sales made by the organizations. An exempt organization that operates as an established business is required to collect tax on its sales.

C. CHARITABLE NONPROFIT ORGANIZATIONS. Charitable organizations that are not engaged in business for profit are not generally required to collect tax on sales made by the charitable organization. However, if a charitable organization makes sales of new tangible personal property and competes with sales by for-profit businesses, then the sales by the charitable organization are taxable. See GR-39(C) for information regarding whether sales are considered to compete with those of for- profit businesses.

GR-25. PERSONS REQUIRED TO COLLECT AND REMIT TAX – SPECIFIC