1. (a) The gross receipts or gross proceeds derived from sales to the United States Government are exempt from the tax.
2. (b) Contractors purchasing tangible personal property or taxable services pursuant to a contract with the United States Government are the consumers of such property or services and must pay the tax when they purchase the property or services.
3. (c) Sales to United States Government employees who pay for the articles purchased with their own funds are not exempt.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules contained a footnote as follows: "Source: Ark. Code Ann. § 26-52-401(5)"