AR
Arkansas House Bill HB1671

Arkansas 2025 Regular Session

Arkansas House Bill HB1671 Compare Versions

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11 Stricken language would be deleted from and underlined language would be added to present law.
2-Act 1007 of the Regular Session
3-*CEB024* 04-14-2025 09:14:29 CEB024
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5-State of Arkansas As Engrossed: H4/7/25 H4/14/25 1
2+*CEB024* 03/04/2025 2:03:39 PM CEB024
3+State of Arkansas 1
64 95th General Assembly A Bill 2
75 Regular Session, 2025 HOUSE BILL 1671 3
86 4
97 By: Representative L. Johnson 5
10-By: Senator J. Boyd 6
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1210 For An Act To Be Entitled 8
1311 AN ACT TO AMEND THE LAW CONCERNING THE GROSS RECEIPTS 9
1412 TAX; TO CREATE A GENERAL SALES AND USE TAX EXEMPTION 10
1513 FOR SALES TO QUALIFIED NONPROFIT ORGANIZATIONS; AND 11
1614 FOR OTHER PURPOSES. 12
1715 13
1816 14
1917 Subtitle 15
2018 TO AMEND THE LAW CONCERNING THE GROSS 16
2119 RECEIPTS TAX; AND TO CREATE A GENERAL 17
2220 SALES AND USE TAX EXEMPTION FOR SALES TO 18
2321 QUALIFIED NONPROFIT ORGANIZATIONS. 19
2422 20
2523 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 21
2624 22
2725 SECTION 1. Arkansas Code Title 26, Chapter 52, Subchapter 4, is 23
2826 amended to add an additional section to read as follows: 24
2927 26-52-457. Sales to qualified nonprofit organization — Definition. 25
3028 (a) As used in this section, "qualified nonprofit organization" means 26
3129 an organization described in 26 U.S.C. § 501(c)(3), as it existed on January 27
3230 1, 2025, that: 28
3331 (1) Has an annual operating budget of less than two hundred 29
3432 thousand dollars ($200,000); and 30
3533 (2) Performs charitable community -based services in the state to 31
3634 benefit residents of the state that are in need of assistance. 32
3735 (b) The gross receipts or gross proceeds derived from the sale of 33
3836 tangible personal property, specified digital products, a digital code, or 34
3937 services are exempt from the gross receipts tax levied by this chapter and 35
40-the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, 36 As Engrossed: H4/7/25 H4/14/25 HB1671
38+the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, 36 HB1671
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4541 § 26-53-101 et seq., if: 1
4642 (1) The sale is made to a qualified nonprofit organization; and 2
47- (2) If the sale is of tangible personal property, the tangible 3
48-personal property sold to the qualified nonprofit organization is not: 4
49- (A) A motor vehicle; 5
50- (B) A motorboat; 6
51- (C) An aircraft or airplane; 7
52- (D) An alcoholic beverage; 8
53- (E) Tobacco; 9
54- (F) A computer; 10
55- (G) A material used to construct a residential or 11
56-commercial structure; 12
57- (H) A household appliance; 13
58- (I) A mobile telephone or cellular telephone; 14
59- (J) An all-terrain vehicle; or 15
60- (K) A television. 16
61- (c) A nonprofit organization requesting recognition as a qualified 17
62-nonprofit organization shall file with the Secretary of the Department of 18
63-Finance and Administration an application as prescribed by the secretary 19
64-verifying the facts upon which the nonprofit organization claims the 20
65-exemption under this section. 21
66- (d)(1) Upon receipt of an application described in subsection (c) of 22
67-this section, the secretary shall respond in writing within a reasonable time 23
68-after the filing of the application either issuing an exemption certificate 24
69-to the qualified nonprofit organization or denying the application. 25
70- (2) If an application is denied, an explanation of the reason 26
71-for denial shall accompany the denial. 27
72- (3) If the secretary finds that a nonprofit organization no 28
73-longer meets the conditions to be a qualified nonprofit organization, the 29
74-secretary shall revoke an exemption certificate. 30
75- (e) The secretary may promulgate rules to implement this section, 31
76-including but not limited to rules regarding: 32
77- (1) An application process; and 33
78- (2) A reverification process. 34
79- (f) The secretary shall report annually to the Legislative Council the 35
80-number of exemption certificates that have been issued to qualified nonprofit 36 As Engrossed: H4/7/25 H4/14/25 HB1671
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85-organizations during the prior one (1) year period. 1
86- 2
87- SECTION 2. EFFECTIVE DATE. Section 1 of this act is effective on the 3
88-first day of the calendar quarter following the effective date of this act. 4
89- 5
90-/s/L. Johnson 6
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93-APPROVED: 4/22/25 9
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43+ (2) The total gross receipts or gross proceeds paid for the item 3
44+or transaction is not more than two thousand dollars ($2,000). 4
45+ (c) A nonprofit organization requesting recognition as a qualified 5
46+nonprofit organization shall file with the Secretary of the Department of 6
47+Finance and Administration an application as prescribed by the secretary 7
48+verifying the facts upon which the nonprofit organization claims the 8
49+exemption under this section. 9
50+ (d)(1) Upon receipt of an application described in subsection (c) of 10
51+this section, the secretary shall respond in writing within a reasonable time 11
52+after the filing of the application either issuing an exemption certificate 12
53+to the qualified nonprofit organization or denying the application. 13
54+ (2) If an application is denied, an explanation of the reason 14
55+for denial shall accompany the denial. 15
56+ (3) If the secretary finds that a nonprofit organization no 16
57+longer meets the conditions to be a qualified nonprofit organization, the 17
58+secretary shall revoke an exemption certificate. 18
59+ (e) The secretary may promulgate rules to implement this section, 19
60+including but not limited to rules regarding: 20
61+ (1) An application process; and 21
62+ (2) A reverification process. 22
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64+ SECTION 2. EFFECTIVE DATE. Section 1 of this act is effective on the 24
65+first day of the calendar quarter following the effective date of this act. 25
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