1. (a)

   1. (1) In addition to the state and local sales or use tax, a one percent (1%) short-term rental tax is to be collected by the lessor on short-term rentals of tangible personal property regardless of whether Arkansas gross receipts or use tax was paid by the lessor at the time of purchase.
   2. (2) See 26 CAR § 30-1002.

2. (b) The short-term rental tax does not apply to the following:

   1. (1) Farm machinery or equipment leased or rented for a commercial purpose;
   2. (2) Motor vehicles, trailers, semitrailers, or other vehicles required to be licensed for highway use under Arkansas law;
   3. (3) A diesel truck leased or rented for commercial shipping; and

   4. (4)

      1. (A) Short-term rentals of tangible personal property that are subject to the two percent (2%) tourism tax.
      2. (B) See Arkansas Code § 26-63-401 et seq., and 26 CAR § 30-1407.
3. (c) Vehicles not otherwise exempt and that are not required to be registered for highway use are subject to the short-term rental tax.

4. (d)

   1. (1) Lessors must maintain sufficient records to establish the intended term of the rental.
   2. (2) In the absence of adequate documentation, payment by the lessee for rental charges for periods of less than thirty (30) days shall be evidence that the term of the rental was for less than thirty (30) days.

5. (e)

   1. (1) Aircraft rented for a period of less than thirty (30) days is subject to the short-term rental tax.
   2. (2) The short-term rental tax does not apply to charter rentals.
   3. (3) See 26 CAR § 30-705.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules contained a footnote as follows: "Source: Ark. Code Ann. § 26-63-301"