HB1737 Summary

• Exempts delivery charges from sales and use tax under the Arkansas Gross Receipts Act of 1941 and from Arkansas Special Excise Taxes

• Defines "delivery charge" as a seller's charge for preparation and delivery to a purchaser's designated location, including transportation, shipping, postage, handling, crating, and packing

• When a shipment contains both tax-exempt and taxable property, the seller pays tax only on the percentage of the delivery charge allocated to taxable property using either total sales price comparison or total weight comparison

• Removes delivery charges from the definition of "gross receipts," "gross proceeds," and "sales price" under the Gross Receipts Act of 1941, Compensating Tax Act of 1949, and Special Excise Taxes

• Effective on the first day of the calendar quarter following the bill's effective date