Rule 006.05.98-011 - Amendment to Gross Receipts Regulation Gr-3(c) - Manufacturers' Buydowns

Arkansas Gross Receipts Tax Regulation GR-3(C) is amended to add two new paragraphs, to be paragraphs (4)(a) and (4)(b), to read as follows;

"(4)

(a) Manufacturers' buydowns shall not be considered a part of the gross proceeds or gross receipts paid by consumers for products on which buydowns have been paid. The provisions of this regulation do not affect sales of property involving the use of manufacturer's or retailer's coupons. Sales involving the use of such coupons shall be governed by Gross Receipts Tax Regulation GR-18.

(b) For purposes of this regulation, a "buydown" is a cash payment made to a retailer by a manufacturer as an incentive to the retailer to reduce the retail price of the manufacturer's products for the purpose of increasing sales of such products. A buydown is a transaction between the manufacturer and the retailer, to which the consumer is not a party."