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