(a)
- (1) A vending device operator that does not meet the requirements of a permitted vending device operator may not purchase vending device goods exempt from sales and use tax as a sale for resale.
- (2) Purchases of these goods from an Arkansas seller are subject to state and local sales tax.
- (3) Purchases of these goods from an out-of-state seller are subject to state and local use tax.
- (b) Sales and use tax must be paid on all vending device goods purchases unless notification in writing to the Sales and Use Tax Section of the Revenue Division of the Department of Finance and Administration is made indicting an election to pay the wholesale vending tax.
- (c) The election will be effective on the first day of the month following the month in which the notice is given. Example: Company B has a sales tax permit for its retail furniture sales and also operates vending machines in its stores. Company B has elected to pay sales and use tax on vending device goods rather than the wholesale vending tax. Company B must pay sales and use tax on all purchases. If Company B later decides to pay the wholesale vending tax, it must first notify the Sales and Use Tax Section in writing of its intent to change its election.