1. (a)

   1. (1) The gross receipts or gross proceeds derived from charges for the receipt and delivery of incoming facsimiles are not subject to gross receipts tax.
   2. (2) Charges for the receipt and delivery of a facsimile are separate and distinct from the telecommunications service used in transmitting a facsimile.

2. (b)

   1. (1) The paper on which the fax is received is an item of tangible personal property that is deemed incidental to the telephone transmission of the message.
   2. (2) Gross receipts tax is to be paid by the seller on any paper or other items purchased for use to deliver the fax transmission to the ultimate consumer.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules contained a footnote as follows: "Source: Ark. Code Ann. § 26-52-315"