Arkansas Senate Bill SB215

Arkansas 2023 Regular Session

• Introduced: 2/7/23
• Refer: 2/8/23
• Failed: 5/1/23

Caption

To Provide A Sales And Use Tax Exemption For Working Horses And Fencing Used In A Commercial Agricultural Production.

Impact

The introduction of SB215 represents a significant shift in state tax policy concerning agriculture. By exempting the purchase of working horses and essential fencing from sales tax, the bill is expected to encourage investment in the agricultural sector, potentially aiding farmers in increasing productivity and sustainability. The implications of this change could be far-reaching, potentially revitalizing interest in commercial farming and improving the state's overall agricultural economy.

Summary

Senate Bill 215 proposes a sales and use tax exemption for certain tangible personal property directly related to agricultural production. Specifically, the bill aims to exempt sales tax on working horses, which are defined as horses primarily used for work in commercial agricultural production, and fencing meant for containing livestock. This exemption is intended to support agricultural businesses by reducing the financial burden associated with acquiring necessary tools and animals for production.

Contention

There might be some contention surrounding the bill based on its definitions and the scope of the exemption. Critics could argue about the effectiveness of such tax exemptions in genuinely supporting the agricultural community or whether they primarily benefit a small percentage of agricultural producers. There may also be discussions on whether the criteria set for qualifying as a ‘working horse’ are too narrow, which could exclude some producers from benefitting from the exemption. Furthermore, questions about the bill's long-term impact on state tax revenue may arise among lawmakers and stakeholders.