LITTLE ROCK (AP) - The Arkansas Department of Finance and Administration said Monday it will begin accepting applications from manufacturers who want to take a cut in the taxes they pay on utility costs.
The Department said it had adopted the rules for the $20.2 million tax cut, which goes into effect July 1. Under the cut signed into law earlier this year, the 6 percent sales tax on manufacturers' natural gas and electricity purchases drops to 4.5 percent on July 1. The following July, the sales tax would drop to 4 percent.
Eligible manufacturers must register with the state to purchase natural gas or electricity at the reduced rate, and the manufacturers will be issued a certificate listing each meter for which the reduced rate is available and the percentage of that meter's billing that is taxed at the reduced rate.
Tom Atchley, excise tax administrator, said he did not know how many manufacturers would apply for the tax cut but said the department is mailing information on the tax cut to 4,000 different companies.