INSTRUCTIONS: ARKANSAS COMMERCIAL FARMING MACHINERY & EQUIPMENT SALES TAX EXEMPTION CERTIFICATE (Form ST-403)

Arkansas state code allows for an exemption on sales tax in the purchase of new or used farming machinery and equipment that will be used exclusively and directly in the agricultural production of food as a retail business. Note that all terrain vehicles are not considered eligible for this type of sales tax exemption. Other examples of non-exempt farming machinery and equipment would include those used to produce food or fibers primarily for the consumption of the commercial farmer or expenses such as repair and labor costs. This document can be obtained from the website maintained by the Arkansas Department of Finance and Administration. Additional assistance can be obtained by calling the number given in the instructions printed on the form.

Arkansas Commercial Farming Machinery & Equipment Sales Tax Exemption Certificate ST-403 Step 1: On the first blank line, print the name of the purchaser.

Arkansas Commercial Farming Machinery & Equipment Sales Tax Exemption Certificate ST-403 Step 2: On the second blank line, print the name of the products grown or raised by the purchaser.

Arkansas Commercial Farming Machinery & Equipment Sales Tax Exemption Certificate ST-403 Step 3: On the third blank line, the purchaser should sign their name.

Arkansas Commercial Farming Machinery & Equipment Sales Tax Exemption Certificate ST-403 Step 4: On the fourth blank line, enter the date.

Arkansas Commercial Farming Machinery & Equipment Sales Tax Exemption Certificate ST-403 Step 5: On the fifth blank line, enter the telephone number of the purchaser, including their area code.

Arkansas Commercial Farming Machinery & Equipment Sales Tax Exemption Certificate ST-403 Step 6: On the sixth blank line, enter the street address, city, state and zip code of the purchaser.

Arkansas Commercial Farming Machinery & Equipment Sales Tax Exemption Certificate ST-403 Step 7: Once completed by the purchaser, this form should be submitted to the seller. The seller is then required to certify to the Arkansas Department of Finance and Administration that the contract price of the farming machinery and equipment in question was accordingly reduced.

Arkansas Commercial Farming Machinery & Equipment Sales Tax Exemption Certificate ST-403 Step 8: It is the responsibility of the seller to maintain this certificate in their records for six years from the date of the sale in case it must be examined as part of an audit.