§ 15-11-511 - Special rules -- Qualified amusement parks.
15-11-511. Special rules -- Qualified amusement parks.
(a) As used in this section, "qualified amusement park" means a commercial recreational activity that:
(1) Operates at least three (3) consecutive months during a calendar year;
(2) Offers rides, shows, games, and other diversions;
(3) Otherwise qualifies as an approved company under 15-11-503(2);
(4) Operates within a designated area of not less than one hundred (100) acres; and
(5) Has annual gross receipts from paid admissions of at least four million dollars ($4,000,000) during a calendar year.
(b) (1) A qualified amusement park may claim the sales tax credit provided in 15-11-507 against its liability for:
(A) Gross receipts tax levied under the Arkansas Gross Receipts Act of 1941, 26-52-101 et seq.; and
(B) Tourism gross receipts tax levied under 26-63-401 et seq.
(2) A qualified amusement park may not claim the sales tax credit against any other taxes collected by the state other than as provided in this section.
(3) An approved company other than a qualified amusement park may only claim the sales tax credit provided in 15-11-507 against the gross receipts tax levied under the Arkansas Gross Receipts Act of 1941, 26-52-101 et seq.
(4) The sales tax credit provided in this section to a qualified amusement park may be carried forward and used in the same manner as provided in 15-11-507(c).
(c) A qualified amusement park entitled to any unused sales tax credits on March 1, 2005, may use the sales tax credits to offset its liability for:
(1) Gross receipts tax levied under the Arkansas Gross Receipts Act of 1941, 26-52-101 et seq., for the remaining carry-forward period as provided in 15-11-507(c) and calculated from the date of original issuance of the sales tax credit memorandum; and
(2) (A) Tourism gross receipts tax levied under 26-63-401 et seq. for a period of ten (10) years beginning on March 1, 2005.
(B) At the end of the ten-year period, the qualified amusement park shall not be allowed to use any unused credits against tourism gross receipts tax levied under 26-63-401 et seq.
(d) (1) Notwithstanding the other provisions of this subchapter, a qualified amusement park that on or after January 1, 2006, enters into an agreement that provides that the qualified amusement park shall expend approved costs of more than one million dollars ($1,000,000) shall be entitled to a sales tax credit if the qualified amusement park certifies to the Director of the Department of Finance and Administration that it has expended at least one million dollars ($1,000,000) in approved costs and the Director of the Arkansas Economic Development Commission certifies that the qualified amusement park is in compliance with this subchapter.
(2) The Director of the Department of Finance and Administration shall then issue a sales tax credit memorandum to the qualified amusement park equal to twenty-five percent (25%) of the approved costs. The sales tax credit memorandum may be used to offset the liability of the qualified amusement park for:
(A) Gross receipts tax levied under the Arkansas Gross Receipts Act of 1941, 26-52-101 et seq.; and
(B) Tourism gross receipts tax levied under 26-52-1001 et seq.
(3) The Director of the Department of Finance and Administration may require proof of expenditures.
(4) Additional credit memoranda may be issued as the qualified amusement park certifies additional expenditures of approved costs.
(5) (A) No sales tax credit memorandum shall be issued for any approved costs expended after the expiration of two (2) years from the date the agreement was signed by the Director of the Arkansas Economic Development Commission and the qualified amusement park.
(B) However, the Director of the Department of Finance and Administration, with the advice and consent of the Director of the Arkansas Economic Development Commission, may authorize sales tax credits for approved costs expended up to four (4) years from the date the agreement was signed if the Director of the Arkansas Economic Development Commission determines that the failure to complete the tourism attraction project within two (2) years resulted from:
(i) Unanticipated and unavoidable delay in the construction of the tourism attraction project;
(ii) The tourism attraction project, as originally planned, will require more than two (2) years to complete; or
(iii) A change in business ownership or business structure resulting from a merger or an acquisition.
(6) The credit memorandum issued pursuant to subdivision (d)(2) of this section may be used to offset one hundred percent (100%) of the reported state tax liability as provided in subdivision (d)(2) of this section of the qualified amusement park for all sales tax reporting periods following the issuance of the credit memorandum, subject to the following limitations:
(A) Unused credits may be carried forward for a period of nine (9) years; and
(B) All issued credit memoranda shall expire at the end of the month following the expiration of the agreement as provided in 15-11-506.
(7) The approved company shall have no obligation to refund or otherwise return any amount of this credit to the person from whom the sales tax was collected.
(8) By April 1 of each year, the Director of the Department of Finance and Administration shall certify to the Director of the Arkansas Economic Development Commission the state sales tax liability of the qualified amusement parks receiving inducements under this section and the amount of state sales tax credits taken during the preceding calendar year.