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Arkansas House Bill HB1319

Arkansas 2025 Regular Session

Arkansas House Bill HB1319 Compare Versions

Only one version of the bill is available at this time.
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11 Stricken language would be deleted from and underlined language would be added to present law.
22 *JLL132* 01/30/2025 9:42:34 AM JLL132
33 State of Arkansas 1
44 95th General Assembly A Bill 2
55 Regular Session, 2025 HOUSE BILL 1319 3
66 4
77 By: Representatives Crawford, Barnes, S. Berry, Breaux, John Carr, C. Cooper, Duffield, Ennett, D. 5
88 Garner, Gonzales Worthen, Gramlich, Hollowell, Hudson, L. Johnson, Lynch, McClure, McCullough, M. 6
99 McElroy, McGruder, Nazarenko, J. Richardson, Richmond, Rose, Rye, Steimel 7
1010 By: Senators J. Boyd, A. Clark 8
1111 9
1212 For An Act To Be Entitled 10
1313 AN ACT TO AMEND THE LAW CONCERNING TAX BENEFITS 11
1414 PROVIDED TO DISABLED VETERANS; TO PROVIDE AN 12
1515 EXEMPTION FROM STATE SALES TAX FOR DISABLED VETERANS, 13
1616 SPOUSES OF DISABLED VETERANS, AND SURVIVING SPOUSES 14
1717 OF DISABLED VETERANS; AND FOR OTHER PURPOSES. 15
1818 16
1919 17
2020 Subtitle 18
2121 TO PROVIDE AN EXEMPTION FROM STATE SALES 19
2222 TAX FOR DISABLED VETERANS, SPOUSES OF 20
2323 DISABLED VETERANS, AND SURVIVING SPOUSES 21
2424 OF DISABLED VETERANS. 22
2525 23
2626 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
2727 25
2828 SECTION 1. Arkansas Code Title 26, Chapter 52, Subchapter 4, is 26
2929 amended to add an additional section to read as follows: 27
3030 26-52-457. Disabled veteran, spouse of disabled veteran, and surviving 28
3131 spouse of disabled veteran. 29
3232 (a) As used in this section, "disabled veteran" means a person who 30
3333 qualifies for a property tax exemption under § 26 -3-306. 31
3434 (b)(1) The gross receipts and gross proceeds derived from the sale of 32
3535 tangible personal property, specified digital products, a digital code, or 33
3636 services to a disabled veteran, a spouse of a disabled veteran, or a 34
3737 surviving spouse of a disabled veteran if the surviving spouse has not 35
3838 remarried are exempt from the gross receipts tax levied by this chapter. 36 HB1319
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4141 (2) The exemption provided in this section: 1
4242 (A) Applies only to sales made at a physical location in 2
4343 the state; and 3
4444 (B) Does not apply to: 4
4545 (i) A sales and use tax levied by a local 5
4646 government; or 6
4747 (ii) The compensating use tax levied by the Arkansas 7
4848 Compensating Tax Act of 1949, § 26 -53-101 et seq. 8
4949 (c) To claim the exemption allowed under this section: 9
5050 (1) A disabled veteran shall: 10
5151 (A) Obtain an identification card from the Department of 11
5252 Veterans Affairs; and 12
5353 (B) Present the identification card obtained under 13
5454 subdivision (c)(1)(A) of this section at the time of an exempt purchase; and 14
5555 (2) The surviving spouse of a deceased disabled veteran shall 15
5656 submit a letter to the Department of Finance and Administration from the 16
5757 United States Department of Veterans Affairs certifying that he or she is the 17
5858 unremarried surviving spouse of a disabled veteran. 18
5959 (d)(1) The maximum amount that may be claimed in a calendar year by a 19
6060 taxpayer as an exemption under this section is five thousand dollars 20
6161 ($5,000). 21
6262 (2) The Department of Finance and Administration may request a 22
6363 person claiming an exemption under this section to provide a statement 23
6464 executed under oath that the amount of the exemption claimed under this 24
6565 section has not exceeded the limitation provided in subdivision (d)(1) of 25
6666 this section. 26
6767 (3) If a taxpayer claiming an exemption under this section 27
6868 exceeds the limitation provided in subdivision (d)(1) of this section, the 28
6969 amount claimed as exempt in excess of the limitation shall be treated as a 29
7070 direct sales tax liability, and the Department of Finance and Administration 30
7171 may recover the sales tax, including any applicable penalties and interest, 31
7272 by the use of any method authorized by law. 32
7373 (e) A seller accepting an identification card under this section to 33
7474 process an exempt transaction shall: 34
7575 (1) Use the serial number on the identification card to process 35
7676 the exempt transaction; and 36 HB1319
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7979 (2) Include each serial number used under subdivision (e)(1) of 1
8080 this section on the sales tax report submitted under this chapter. 2
8181 (f)(1) The Department of Veterans Affairs, in coordination with the 3
8282 Department of Finance and Administration, shall issue an identification card 4
8383 to each eligible person who applies for an identification card under this 5
8484 section. 6
8585 (2) An identification card issued under this subsection shall 7
8686 include without limitation: 8
8787 (A) A photograph of the disabled veteran to whom the 9
8888 identification card is issued; and 10
8989 (B) A unique serial number for purposes of verifying the 11
9090 exemption allowed under this section. 12
9191 (g) A person who claims an exemption under this section with a purpose 13
9292 to defraud upon conviction is guilty of a Class C misdemeanor. 14
9393 (h) The Department of Veterans Affairs and the Department of Finance 15
9494 and Administration shall: 16
9595 (1) Adopt rules to implement and administer this section; and 17
9696 (2) Collaborate to: 18
9797 (A) Ensure the secure issuance of identification cards to 19
9898 disabled veterans; and 20
9999 (B) Manage the exemption provided under this section. 21
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101101 SECTION 2. Arkansas Code § 26 -73-113(a)(1)(A), concerning the 23
102102 alternative local sales and use tax, is amended to read as follows: 24
103103 (a)(1)(A) In lieu of using all or a portion of its authority to levy a 25
104104 sales and use tax solely to pay bonded debt under § 14 -164-327, the governing 26
105105 body of any municipality or county may adopt an ordinance levying a tax in 27
106106 the amount of one-fourth of one percent (0.25%), one -half of one percent 28
107107 (0.5%), three-fourths of one percent (0.75%), or one percent (1%) upon all 29
108108 taxable sales of property and services subject to the tax levied by the 30
109109 Arkansas Gross Receipts Act of 1941, § 26 -52-101 et seq., upon the sales of 31
110110 property and services exempt from the gross receipts tax under § 26 -52-457, 32
111111 and upon the privilege of storing, using, distributing, or consuming within 33
112112 this state any tangible personal property which is subject to the Arkansas 34
113113 Compensating Tax Act of 1949, § 26 -53-101 et seq. The ordinance or ordinances 35
114114 must specify that the tax is being levied under this law. 36 HB1319
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117117 1
118118 SECTION 3. Arkansas Code § 26 -74-212(a), concerning the applicability 2
119119 of the county sales tax levied for capital improvements, is amended to read 3
120120 as follows: 4
121121 (a) A county sales tax levied under this subchapter or in § 26 -74-301 5
122122 et seq. shall be applicable to sales of items and services sold by a 6
123123 business, including items and services exempt from the Arkansas Gross 7
124124 Receipts Act of 1941, § 26 -52-101 et seq., under § 26 -52-457, and the tax 8
125125 shall be administered under the Arkansas Gross Receipts Act of 1941, § 26 -52-9
126126 101 et seq., and the Arkansas Compensating Tax Act of 1949, § 26 -53-101 et 10
127127 seq. 11
128128 12
129129 SECTION 4. Arkansas Code § 26 -74-312(b), concerning the administration 13
130130 and collection of the county sales and use tax for capital improvements, is 14
131131 amended to read as follows: 15
132132 (b) In addition to the state gross receipts tax, the secretary shall 16
133133 collect an additional tax under the authority of this subchapter on the gross 17
134134 receipts from the sale of all items and services that are subject to the 18
135135 Arkansas Gross Receipts Act of 1941, § 26 -52-101 et seq., and the Arkansas 19
136136 Compensating Tax Act of 1949, § 26 -53-101 et seq., and all items and services 20
137137 exempt from the Arkansas Gross Receipts Act of 1941, § 26 -52-101 et seq., 21
138138 under § 26-52-457. 22
139139 23
140140 SECTION 5. Arkansas Code § 26 -75-214(b), concerning the administration 24
141141 and collection of the municipal sales and use tax for capital improvements, 25
142142 is amended to read as follows: 26
143143 (b) In addition to the state gross receipts tax and compensating tax, 27
144144 the secretary shall collect an additional tax under the authority of this 28
145145 subchapter on the receipts from the sale at retail or on the sale price or 29
146146 lease or rental price on the storage, use, distribution, or other consumption 30
147147 of all taxable items and services subject to the Arkansas Gross Receipts Act 31
148148 of 1941, § 26-52-101 et seq., and the Arkansas Compensating Tax Act of 1949, 32
149149 § 26-53-101 et seq., and all items and services exempt from the Arkansas 33
150150 Gross Receipts Act of 1941, § 26 -52-101 et seq., under § 26 -52-457. 34
151151 35
152152 SECTION 6. Arkansas Code § 26 -75-405(a), concerning the items subject 36 HB1319
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155155 to the temporary municipal sales and use tax for the acquisition, 1
156156 construction, or improvement of parks, is amended to read as follows: 2
157157 (a) When any city or town levies a sales and use tax pursuant to the 3
158158 authority granted in this subchapter, the tax shall be levied upon the same 4
159159 sales and the same items and services as are subject to taxation under the 5
160160 Arkansas Gross Receipts Act of 1941, § 26 -52-101 et seq., and the Arkansas 6
161161 Compensating Tax Act of 1949, § 26 -53-101 et seq., and upon the items and 7
162162 services exempt from the Arkansas Gross Receipts Act of 1941, § 26 -52-101 et 8
163163 seq., under § 26-52-457. 9
164164 10
165165 SECTION 7. Arkansas Code § 26 -75-502(a), concerning the authority to 11
166166 levy a municipal gross receipts tax, is amended to read as follows: 12
167167 (a) Any city of the first class or city of the second class having a 13
168168 population of not more than forty thousand (40,000) persons according to the 14
169169 most recent federal census and that has been or may in the future be 15
170170 designated as a model city under the Demonstration Cities and Metropolitan 16
171171 Development Act of 1966, 42 U.S.C. § 3301 et seq., by an ordinance passed by 17
172172 its governing body, may levy a tax for the benefit of the city of not to 18
173173 exceed one percent (1%) on gross proceeds or gross receipts derived from 19
174174 sales, as such sales and gross proceeds or gross receipts are defined in the 20
175175 Arkansas Gross Receipts Act of 1941, § 26 -52-101 et seq., and the Arkansas 21
176176 Compensating Tax Act of 1949, § 26 -53-101 et seq., and on sales of property 22
177177 and services exempt from the Arkansas Gross Receipts Act of 1941, § 26 -52-101 23
178178 et seq., under § 26-52-457. 24
179179 25
180180 SECTION 8. Arkansas Code § 26 -81-104(a)(1), concerning the amount of a 26
181181 tax levied under the Multicounty Airport and Riverport Financing Act, is 27
182182 amended to read as follows: 28
183183 (a)(1) Any tax levied pursuant to the authority of this chapter shall 29
184184 be a tax equal to one percent (1%) on the sales price on items of personal 30
185185 property and services sold or to be used in the levying county to the extent 31
186186 of and subject to the exemptions with respect to the gross receipts tax and 32
187187 compensating use tax as set forth in the Arkansas Gross Receipts Act of 1941, 33
188188 § 26-52-101 et seq., and the Arkansas Compensating Tax Act of 1949, § 26 -53-34
189189 101 et seq., respectively , except that personal property and services exempt 35
190190 from the Arkansas Gross Receipts Act of 1941, § 26 -52-101 et seq., under § 36 HB1319
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193193 26-52-457 are subject to the tax levied under this section . 1
194194 2
195195 SECTION 9. Arkansas Code § 26 -82-102(9), concerning the definitions to 3
196196 be used under the Local Sales and Use Tax Economic Development Project 4
197197 Funding Act, is amended to read as follows: 5
198198 (9) “Local sales and use tax” means a tax levied under this 6
199199 chapter on the gross proceeds or gross receipts derived from sales within a 7
200200 city or county of all items that are : subject 8
201201 (A) Subject to taxation under the Arkansas Gross Receipts 9
202202 Act of 1941, § 26-52-101 et seq., or the Arkansas Compensating Tax Act of 10
203203 1949, § 26-53-101 et seq.; and 11
204204 (B) Exempt from the Arkansas Gross Receipts Act of 1941, § 12
205205 26-52-101 et seq., under § 26 -52-457; 13
206206 14
207207 SECTION 10. DO NOT CODIFY. EFFECTIVE DATE. Sections 1-9 of this act 15
208208 are effective on the first day of the calendar quarter following the 16
209209 effective date of this act. 17
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