The Arkansas Department of Finance and Administration (DFA) Sept. 9 determined in a letter ruling the calculation of the gross receipt tax and the application of the tax cap. Taxpayer enquired whether a purchaser of tangible personal property or service in a line of business should calculate the tax on the full rate or by applying the tax cap of $2500. The DFA clarified that: 1) Taxpayer must calculate the tax on the entire purchase price without consideration of the local sales and use tax cap; 2) the tax cap applies only to the purchase of a motor vehicle, aircraft,...