Sales Tax Exemptions

Arkansas

Low-Income Sales Tax Exemption

Families with an annual income of $12,000 or less are eligible to claim an exemption from sales tax on the first 500 kilowatt-hours of electricity used each month (Ark. Code Ann. § 26-52-416(a)).

To receive this exemption, please complete the exemption claim form and submit it to the Cooperative.

 Please email or mail the completed exemption form to:

Carroll Electric Cooperative
Attn: Billing Department
PO Box 4000
Berryville, AR 72616

NOTE:  If you are already receiving the sales tax exemption, you do not need to refile the exemption form. Once the exemption has been claimed, you will continue to receive the exemption until your annual household income exceeds $12,000 or your account is disconnected. It is your responsibility to notify the Cooperative when you no longer qualify for the exemption. Notification must be given to Carroll Electric if the previous year's annual household income exceeded $12,000.  

Farm Utility Sales Tax Exemption

Act 1441:  Exempts utilities used for qualifying agricultural structures and qualifying aquaculture and horticulture equipment. Aquaculture means the active cultivation of domesticated fish. Horticulture means the initial production of fruits, vegetables, trees, shrubs, vines, and florist stock unless the cultivation of these items are at a retail or wholesale facility from which the items are sold. A qualifying agriculture structure means a poultry or livestock facility used for commercial production; a cattle or dairy facility; and a greenhouse used for commercial production. Utilities eligible for the exemption are electricity; liquefied petroleum gas; and natural gas. The utilities eligible for the exemption must be separately metered from a utility used for any other purpose. Eligible purchasers will need to obtain a certificate from the Arkansas Department of Finance and Administration to provide to utilities in order to claim the exemption. 

Acct 1401:  Exempts utilities used for commercial grain drying and storage. The utilities exempted are electricity, liquefied petroleum gas, and natural gas which are separately metered from a utility used for any other purpose. Eligible purchasers will need to obtain a certificate from the Arkansas Department of Finance and Administration to provide to utilities in order to claim the exemption. 

Sales Tax Reduction for Manufacturers

Act 1441:  Reduces sales tax on electricity used directly in the manufacturing process. Eligible purchasers will need to obtain a certificate from the Arkansas Department of Finance and Administration to provide to utilities in order to claim the exemption. 

For additional information or to view a list of all Arkansas sales tax exemptions for electricity purchases, please visit www.dfa.arkansas.gov.

Missouri

Generally, Missouri taxes all retail sales of tangible personal property and certain taxable services. However, there are a number of exemptions and exclusions from Missouri's sales and use tax laws. For additional information or to view a list of Missouri sales tax exemptions for electricity purchases, please visit https://dor.mo.gov/taxation. 

To complete a Missouri Sales and Use Tax Exemption Certificate (Form 149), click here. 

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