1. (a) Services.

   1. (1)

      1. (A) The service of initial installation, alteration, addition, cleaning, refinishing, replacement, and repair of the following items of tangible personal property are subject to the tax:

2. (i) Motor vehicles;

   1. (ii) Aircraft;

      1. (iii) Farm machinery and farm implements;

         1. (iv) Motors of all kinds;
         2. (v) Tires;
         3. (vi) Batteries;
         4. (vii) Boats;
         5. (viii) Electrical appliances;
         6. (ix) Electrical devices;
         7. (x) Furniture;
         8. (xi) Rugs, including carpets;
         9. (xii) Flooring;
         10. (xiii) Upholstery;
         11. (xiv) Household appliances;
         12. (xv) Television and radio;
         13. (xvi) Jewelry;
         14. (xvii) Watches; (xviii) Clocks;
         15. (xix) Engineering instruments;
         16. (xx) Medical instruments and surgical instruments;
         17. (xxi) Machinery of all kinds;
         18. (xxii) Bicycles; (xxiii) Office machines;
         19. (xxiv) Office equipment;
         20. (xxv) Shoes;
         21. (xxvi) Tin and sheet metal; (xxvii) Mechanical tools; and (xxviii) Shop equipment.
      2. (B) See also 26 CAR §§ 30-519, 30-1103, 30-1115, and 30-1141.
   2. (2) The tax applies to the enumerated services performed on the items listed in 26 CAR § 30-502(a)(1) whether or not the items are affixed to real property.

3. (b) Additional services. Additional services subject to gross receipts tax include:

   1. (1) Service of providing transportation or delivery of money, property, or valuables by armored car;
   2. (2) Service of pool cleaning and servicing;
   3. (3) Pager services;
   4. (4) Telephone answering services;
   5. (5) Service of parking a motor vehicle or allowing a motor vehicle to be parked;
   6. (6) Service of storing a motor vehicle;
   7. (7) Service of storing furs;
   8. (8) Service of providing indoor tanning at a tanning salon;
   9. (9) Lawn care and landscaping services (see 26 CAR § 30-504);
   10. (10) Service of providing cleaning or janitorial work (see 26 CAR § 30-506);
   11. (11) Wrecker and towing services (see 26 CAR § 30-507);
   12. (12) Collection and disposal of solid wastes (see 26 CAR § 30-508);
   13. (13) Cleaning of parking lots and gutters (see 26 CAR § 30-509);
   14. (14) Dry cleaning and laundry services and industrial laundry services (see 26 CAR § 30-510);
   15. (15) Mini-warehouse and self-storage rental services (see 26 CAR § 30-511);
   16. (16) Body piercing, tattooing, and electrolysis services (see 26 CAR § 30-512);
   17. (17) Pest control services (see 26 CAR § 30-513);
   18. (18) Security and alarm monitoring services (see 26 CAR § 30-514);
   19. (19) Boat storage and docking fees (see 26 CAR § 30-515);
   20. (20) Furnishing of camping spaces or trailer spaces at public or private campgrounds (see 26 CAR § 30-516);
   21. (21) Locksmith services (see 26 CAR § 30-517); and

   22. (22) Pet grooming and kennel services (see 26 CAR § 30-518).

       1. (c) Dues and fees. Dues and fees paid to health spas, health clubs, and fitness clubs are subject to gross receipts tax.

          1. (d) Service contracts, maintenance agreements, and extended warranties.

   23. (1)

       1. (A) Sales tax shall apply to the gross receipts derived from the sale of contracts, including service contracts, maintenance agreements, and extended warranties that in whole or in part provide for the future performance of or payment for services that are subject to gross receipts tax, including home warranty contracts that provide for repair or replacement of appliances, devices, machinery, or any other items included in the contract.
       2. (B) The seller of the contract must collect and remit the tax due on the sale of the contract except when the contract is sold simultaneously with a motor vehicle in which case the purchaser of the vehicle shall pay sales tax on the purchase of the contract at the time of vehicle registration.
   24. (2) Sales tax shall not be collected from the consumer on labor or parts used in the performance of services covered by a taxable service contract, maintenance agreement, or extended warranty or home warranty contract. Example 1: Consumer purchases a new vehicle and an extended warranty at the same time. When customer registers the vehicle, he or she will pay sales tax on the purchase price of the vehicle and the purchase price of the extended warranty. Service and parts provided under the warranty will not be subject to sales tax. Example 2: Consumer purchases a new computer and a service contract. The seller of the computer collects sales tax on the purchase price of the computer and the service contract. Service and parts provided under the warranty will not be subject to sales tax. Example 3: Consumer purchases a home warranty contract in connection with the purchase of a residence. The purchase price of the home warranty contract may be collected with the closing costs of the real estate transaction or may be paid directly by the real estate purchaser to the person or entity designated by the seller of the contract. The seller of the contract, or the seller’s designated agent, collects sales tax on the purchase price of the home warranty contract. Labor and tangible personal property provided under the warranty will not be subject to sales tax.
   25. (3) If the seller of a taxable contract allows the purchaser to pay for the contract in monthly or other periodic installments, then the seller may report and remit sales tax on the periodic payments.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules contained a footnote as follows: "Source: Ark. Code Ann. §§ 26-52-301(3); 26-52-301(6); 26-52-301(7); 26-52-316"