Stricken language would be deleted from and underlined language would be added to present law.
Act 714 of the Regular Session
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1851 3
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By: Representative Jean 5
By: Senator Crowell 6
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For An Act To Be Entitled 8
AN ACT TO AMEND THE SALES TAX EXEMPTION FOR FOOD, 9
FOOD INGREDIENTS, AND PREPARED FOOD SOLD IN A PUBLIC, 10
COMMON, HIGH SCHOOL, OR COLLEGE CAFETERIA OR DINING 11
FACILITY; AND FOR OTHER PURPOSES. 12
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Subtitle 15
TO AMEND THE SALES TAX EXEMPTION FOR 16
FOOD, FOOD INGREDIENTS, AND PREPARED 17
FOOD SOLD IN A PUBLIC, COMMON, HIGH 18
SCHOOL, OR COLLEGE CAFETERIA OR DINING 19
FACILITY. 20
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22
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SECTION 1. DO NOT CODIFY. Legislative findings and intent. 24
(a) The General Assembly finds that the Arkansas Gross Receipts Act of 25
1941, as originally enacted, included an exemption for the sale of food in 26
public school, high school, and college cafeterias and lunchrooms operated 27
primarily for teachers and pupils and not operated for profit. 28
(b) The General Assembly intends for this act to update the exemption 29
provided for the sale of food in public school, high school, and college 30
cafeterias and lunchrooms to be consistent with the current prevailing school 31
food service and management practices, in accordance with the legislative 32
intent of the exemption as it was originally enacted. 33
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SECTION 2. Arkansas Code § 26 -52-401(3), concerning sales tax 35
exemptions provided for various products and services, is amended to read as 36 HB1851
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follows: 1
(3)(A) Gross receipts or gross proceeds derived from the sale of 2
food, food ingredients, or prepared food in public, common, high school, or 3
college cafeterias and lunch rooms dining facilities operated primarily for 4
teachers and pupils, not operated primarily for the public and not operated 5
for profit. 6
(B) A public, common, high school, or college cafeteria or 7
dining facility that contracts for services or management from a third party 8
that operates for profit is not considered to be operated for profit for 9
purposes of the exemption provided under subdivision (3)(A) of this section 10
solely because a for -profit third party provides services or management for 11
the public, common, high school, or college cafeteria or dining facility ; 12
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SECTION 3. EFFECTIVE DATE. Section 2 of this act is effective on the 14
first day of the calendar quarter following the effective date of this act. 15
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APPROVED: 4/16/25 18
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