| 3 | 2 | | *JLL334* 03/19/2025 11:45:01 AM JLL334 |
|---|
| 4 | 3 | | State of Arkansas 1 |
|---|
| 5 | 4 | | 95th General Assembly A Bill 2 |
|---|
| 6 | 5 | | Regular Session, 2025 HOUSE BILL 1851 3 |
|---|
| 7 | 6 | | 4 |
|---|
| 8 | 7 | | By: Representative Jean 5 |
|---|
| 9 | 8 | | By: Senator Crowell 6 |
|---|
| 10 | 9 | | 7 |
|---|
| 11 | 10 | | For An Act To Be Entitled 8 |
|---|
| 12 | 11 | | AN ACT TO AMEND THE SALES TAX EXEMPTION FOR FOOD, 9 |
|---|
| 13 | 12 | | FOOD INGREDIENTS, AND PREPARED FOOD SOLD IN A PUBLIC, 10 |
|---|
| 14 | 13 | | COMMON, HIGH SCHOOL, OR COLLEGE CAFETERIA OR DINING 11 |
|---|
| 15 | 14 | | FACILITY; AND FOR OTHER PURPOSES. 12 |
|---|
| 16 | 15 | | 13 |
|---|
| 17 | 16 | | 14 |
|---|
| 18 | 17 | | Subtitle 15 |
|---|
| 19 | 18 | | TO AMEND THE SALES TAX EXEMPTION FOR 16 |
|---|
| 20 | 19 | | FOOD, FOOD INGREDIENTS, AND PREPARED 17 |
|---|
| 21 | 20 | | FOOD SOLD IN A PUBLIC, COMMON, HIGH 18 |
|---|
| 22 | 21 | | SCHOOL, OR COLLEGE CAFETERIA OR DINING 19 |
|---|
| 23 | 22 | | FACILITY. 20 |
|---|
| 24 | 23 | | 21 |
|---|
| 25 | 24 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22 |
|---|
| 26 | 25 | | 23 |
|---|
| 27 | 26 | | SECTION 1. DO NOT CODIFY. Legislative findings and intent. 24 |
|---|
| 28 | 27 | | (a) The General Assembly finds that the Arkansas Gross Receipts Act of 25 |
|---|
| 29 | 28 | | 1941, as originally enacted, included an exemption for the sale of food in 26 |
|---|
| 30 | 29 | | public school, high school, and college cafeterias and lunchrooms operated 27 |
|---|
| 31 | 30 | | primarily for teachers and pupils and not operated for profit. 28 |
|---|
| 32 | 31 | | (b) The General Assembly intends for this act to update the exemption 29 |
|---|
| 33 | 32 | | provided for the sale of food in public school, high school, and college 30 |
|---|
| 34 | 33 | | cafeterias and lunchrooms to be consistent with the current prevailing school 31 |
|---|
| 35 | 34 | | food service and management practices, in accordance with the legislative 32 |
|---|
| 36 | 35 | | intent of the exemption as it was originally enacted. 33 |
|---|
| 37 | 36 | | 34 |
|---|
| 38 | 37 | | SECTION 2. Arkansas Code § 26 -52-401(3), concerning sales tax 35 |
|---|
| 39 | 38 | | exemptions provided for various products and services, is amended to read as 36 HB1851 |
|---|
| 40 | 39 | | |
|---|
| 41 | 40 | | 2 03/19/2025 11:45:01 AM JLL334 |
|---|
| 42 | 41 | | follows: 1 |
|---|
| 43 | 42 | | (3)(A) Gross receipts or gross proceeds derived from the sale of 2 |
|---|
| 44 | 43 | | food, food ingredients, or prepared food in public, common, high school, or 3 |
|---|
| 45 | 44 | | college cafeterias and lunch rooms dining facilities operated primarily for 4 |
|---|
| 46 | 45 | | teachers and pupils, not operated primarily for the public and not operated 5 |
|---|
| 47 | 46 | | for profit. 6 |
|---|
| 48 | 47 | | (B) A public, common, high school, or college cafeteria or 7 |
|---|
| 49 | 48 | | dining facility that contracts for services or management from a third party 8 |
|---|
| 50 | 49 | | that operates for profit is not considered to be operated for profit for 9 |
|---|
| 51 | 50 | | purposes of the exemption provided under subdivision (3)(A) of this section 10 |
|---|
| 52 | 51 | | solely because a for -profit third party provides services or management for 11 |
|---|
| 53 | 52 | | the public, common, high school, or college cafeteria or dining facility ; 12 |
|---|
| 54 | 53 | | 13 |
|---|
| 55 | 54 | | SECTION 3. EFFECTIVE DATE. Section 2 of this act is effective on the 14 |
|---|
| 56 | 55 | | first day of the calendar quarter following the effective date of this act. 15 |
|---|
| 57 | 56 | | 16 |
|---|
| 58 | 57 | | 17 |
|---|