1. (a) Concrete mixers and batch plants.

   1. (1) Concrete mix trucks and ready-mix concrete batch plants are not machinery and equipment used directly in manufacturing and do not qualify for the manufacturing exemption.

   2. (2)

      1. (A) “Batch” means the quantity:

2. (i) Produced as the result of one (1) operation; or

   1. (ii) Needed for one (1) operation.

      1. (B) A concrete batch plant combines cement, water, and other raw components for delivery of “wet” concrete to a consumer’s construction site.

3. (b) Saw mills and lumber mills.

   1. (1) Machinery and equipment used directly in the manufacturing of a finished lumber product by sawmills and lumber mills will be exempt from the tax.
   2. (2) A finished lumber product includes any new article of commerce created by sawmills or lumber mills.
   3. (3) Items such as portable chain saws, hand tools, buildings, storage facilities, and all other similar items will be subject to the tax.
   4. (4) In all events, the machinery and equipment purchased and used by sawmills must satisfy the requirements of 26 CAR § 30-1136.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules contained a footnote as follows: "Source: Ark. Code Ann. § 26-52-402"