| 1 | 1 | | Stricken language would be deleted from and underlined language would be added to present law. |
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| 2 | 2 | | *JLL292* 03/11/2025 8:38:12 AM JLL292 |
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| 3 | 3 | | State of Arkansas 1 |
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| 4 | 4 | | 95th General Assembly A Bill 2 |
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| 5 | 5 | | Regular Session, 2025 HOUSE BILL 1738 3 |
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| 6 | 6 | | 4 |
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| 7 | 7 | | By: Representatives Crawford, Barnes, S. Berry, Breaux, John Carr, C. Cooper, Duffield, Ennett, D. 5 |
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| 8 | 8 | | Garner, Gonzales Worthen, Gramlich, Hollowell, Hudson, L. Johnson, Lynch, McClure, McCullough, M. 6 |
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| 9 | 9 | | McElroy, McGruder, Nazarenko, J. Richardson, Richmond, Rose, Rye, Steimel 7 |
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| 10 | 10 | | By: Senators J. Boyd, A. Clark 8 |
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| 11 | 11 | | 9 |
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| 12 | 12 | | For An Act To Be Entitled 10 |
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| 13 | 13 | | AN ACT TO AMEND THE LAW CONCERNING BENEFITS PROVIDED 11 |
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| 14 | 14 | | TO DISABLED VETERANS; TO PROVIDE A SALES AND USE TAX 12 |
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| 15 | 15 | | EXEMPTION FOR DISABLED VETERANS AND CERTAIN HOUSEHOLD 13 |
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| 16 | 16 | | MEMBERS OF DISABLED VETERANS; AND FOR OTHER PURPOSES. 14 |
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| 17 | 17 | | 15 |
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| 18 | 18 | | 16 |
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| 19 | 19 | | Subtitle 17 |
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| 20 | 20 | | TO PROVIDE A SALES AND USE TAX EXEMPTION 18 |
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| 21 | 21 | | FOR DISABLED VETERANS. 19 |
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| 22 | 22 | | 20 |
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| 23 | 23 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 21 |
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| 24 | 24 | | 22 |
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| 25 | 25 | | SECTION 1. Arkansas Code Title 26, Chapter 52, Subchapter 4, is 23 |
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| 26 | 26 | | amended to add an additional section to read as follows: 24 |
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| 27 | 27 | | 26-52-457. Disabled veterans — Definition. 25 |
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| 28 | 28 | | (a) As used in this section, "disabled veteran" means a person who 26 |
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| 29 | 29 | | qualifies for a property tax exemption under § 26 -3-306. 27 |
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| 30 | 30 | | (b)(1) The gross receipts or gross proceeds from the sale of tangible 28 |
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| 31 | 31 | | personal property, specified digital products, a digital code, or a service 29 |
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| 32 | 32 | | to the following are exempt from the gross receipts tax levied by this 30 |
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| 33 | 33 | | chapter and the compensating use tax levied by the Arkansas Compensating Tax 31 |
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| 34 | 34 | | Act of 1949, § 26-53-101 et seq.: 32 |
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| 35 | 35 | | (1) A disabled veteran; or 33 |
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| 36 | 36 | | (2) A member of a disabled veteran's household who is authorized 34 |
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| 37 | 37 | | to make purchases on behalf of and for the benefit of the disabled veteran in 35 |
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| 38 | 38 | | the disabled veteran's absence. 36 HB1738 |
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| 39 | 39 | | |
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| 40 | 40 | | 2 03/11/2025 8:38:12 AM JLL292 |
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| 41 | 41 | | (c) To qualify for the exemption under this section, a disabled 1 |
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| 42 | 42 | | veteran shall submit to the Department of Finance and Administration a letter 2 |
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| 43 | 43 | | from the United States Department of Veterans Affairs certifying that he or 3 |
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| 44 | 44 | | she is a disabled veteran under § 26 -3-306. 4 |
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| 45 | 45 | | (d)(1) The maximum total amount of sales that qualify for an exemption 5 |
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| 46 | 46 | | under this section is twenty -five thousand dollars ($25,000) per year for 6 |
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| 47 | 47 | | each disabled veteran. 7 |
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| 48 | 48 | | (2) The Department of Finance and Administration may request a 8 |
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| 49 | 49 | | taxpayer claiming an exemption under this section to provide a statement 9 |
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| 50 | 50 | | executed under oath that the total amount of sales subject to the exemption 10 |
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| 51 | 51 | | provided under this section has not exceeded the limitation provided in 11 |
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| 52 | 52 | | subdivision (d)(1) of this section. 12 |
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| 53 | 53 | | (3) If a taxpayer claims an exemption under this section on a 13 |
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| 54 | 54 | | sale that exceeds the limitation provided in subdivision (d)(1) of this 14 |
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| 55 | 55 | | section, the amount claimed as exempt in excess of the limitation shall be 15 |
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| 56 | 56 | | treated as a direct sales tax liability, and the Department of Finance and 16 |
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| 57 | 57 | | Administration may recover the sales and use tax, including any applicable 17 |
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| 58 | 58 | | penalties and interest, by the use of any method authorized by law. 18 |
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| 59 | 59 | | (e) The Department of Finance and Administration shall issue an 19 |
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| 60 | 60 | | exemption card to each disabled veteran who qualifies for an exemption card 20 |
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| 61 | 61 | | under this section and each member of a disabled veteran's household who is 21 |
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| 62 | 62 | | authorized to make purchases on behalf of and for the benefit of the disabled 22 |
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| 63 | 63 | | veteran in the disabled veteran's absence. 23 |
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| 64 | 64 | | (f) A person who claims an exemption under this section with a purpose 24 |
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| 65 | 65 | | to defraud upon conviction is guilty of a Class C misdemeanor. 25 |
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| 66 | 66 | | (g) The Department of Finance and Administration shall promulgate 26 |
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| 67 | 67 | | rules to implement and administer this section. 27 |
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| 68 | 68 | | 28 |
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| 69 | 69 | | SECTION 2. DO NOT CODIFY. EFFECTIVE DATE. Section 1 of this act is 29 |
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| 70 | 70 | | effective on the first day of the calendar quarter following the effective 30 |
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| 71 | 71 | | date of this act. 31 |
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