Daily Tax Report: State

Arkansas Finance Department Determines Sales and Use Taxability of Dietary Supplements

Sept. 11, 2019, 9:33 PM

The Arkansas Department of Finance and Administration (DFA) Sept. 30 determined in a letter ruling that the sales of dietary supplements were subject to gross receipts tax. Taxpayer sold nutritional, dietary, and skincare products as a multi-level marketer. Taxpayer filed consolidated sales or excise tax return instead of each independent distributor filing a separate return with their state. Taxpayer sought confirmation on the taxability of their reformulated product, which was a “mental clarity” dietary supplement in powder form. In Arkansas, the term “food and food ingredients” doesn’t include “dietary supplements.” The DFA noted: 1) the “mental clarity” dietary supplement had...

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