LITTLE ROCK, Ark. (AP) - A Texas-based company is asking Arkansas’ highest court to require the state to return more than $1.3 million in taxes it collected on sand that was used in natural gas drilling.
Attorneys for the Arkansas Department of Finance and Administration and Weatherford Artificial Lift Systems Inc. in Texas appeared before the state Supreme Court Thursday over a Pulaski County judge’s ruling that the state improperly charged taxes on the sand. DFA is appealing the judge’s ruling that sand qualifies as equipment, meaning taxes can’t be collected.
Lawmakers last year approved changing state law to exempt from sales taxes sand that is used in natural gas drilling. The case pending before the high court is focusing on whether the sand was already exempt before that legislation was approved.
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