LITTLE ROCK, AR - Industries who want to cut the sales tax they pay on purchase of electricity, water and natural gas can apply now to get the reduction. The Arkansas Dept. of Finance and Administration says it's accepting applications from manufacturers to carry out the terms of a new law approved by lawmakers this year.
The Dept. said it had adopted the rules for the $20.2 million tax cut, which goes into effect July 1. Under the cut signed into law earlier this year, the current six percent sales tax on manufacturers' natural gas and electricity purchases drops to 4.5 percent on July 1. In July of 2008, the sales tax will drop to four percent.
Eligible manufacturers must register with the state to purchase natural gas or electricity at the reduced rate. Tom Atchley says DFA is mailing information on the tax cut to 4,000 companies.