 The State of Arkansas has exempted certain items from sales and use tax. Within BASIS, we have an indicator to exempt the item from sales/use tax with a reason code as to why the item is exempt.  Possible values include: ◦ D = Prescription drugs ◦ S = Feed, seed, & fertilizer ◦ F = Farm machinery ◦ N = Items for resale ◦ G = Gasoline ◦ O = Other exempt items ◦ E = Organization is exempt ◦ X = Tax exemption must be determined by Purchasing  The tax exempt codes are maintained on our commodity code table. All tax exempt commodities are coded with one of above the values.

Commodity Code Screen

Requisition Line

Commodity Code Screen – Another Example