| 3 | 2 | | *TNL045* 02/05/2025 1:50:02 PM TNL045 |
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| 4 | 3 | | State of Arkansas 1 |
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| 5 | 4 | | 95th General Assembly A Bill 2 |
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| 6 | 5 | | Regular Session, 2025 SENATE BILL 200 3 |
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| 7 | 6 | | 4 |
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| 8 | 7 | | By: Senator K. Hammer 5 |
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| 9 | 8 | | By: Representative Hawk 6 |
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| 10 | 9 | | 7 |
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| 11 | 10 | | For An Act To Be Entitled 8 |
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| 12 | 11 | | AN ACT TO INCLUDE TEXTBOOKS AND OTHER INSTRUCTIONAL 9 |
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| 13 | 12 | | MATERIALS THAT ARE LEASED IN THE EXEMPTION FROM THE 10 |
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| 14 | 13 | | GROSS RECEIPTS TAX; AND FOR OTHER PURPOSES. 11 |
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| 15 | 14 | | 12 |
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| 16 | 15 | | 13 |
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| 17 | 16 | | Subtitle 14 |
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| 18 | 17 | | TO INCLUDE TEXTBOOKS AND OTHER 15 |
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| 19 | 18 | | INSTRUCTIONAL MATERIALS THAT ARE LEASED 16 |
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| 20 | 19 | | IN THE EXEMPTION FROM THE GROSS RECEIPTS 17 |
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| 21 | 20 | | TAX. 18 |
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| 22 | 21 | | 19 |
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| 23 | 22 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 20 |
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| 24 | 23 | | 21 |
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| 25 | 24 | | SECTION 1. Arkansas Code § 26 -52-437(a)(2), concerning the definition 22 |
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| 26 | 25 | | of "instructional materials" as it relates to the exemption of textbooks and 23 |
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| 27 | 26 | | other instructional materials from the gross receipts tax, is amended to read 24 |
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| 28 | 27 | | as follows: 25 |
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| 29 | 28 | | (2) “Instructional materials” does not include: 26 |
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| 30 | 29 | | (A) Items purchased or leased for use in: 27 |
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| 31 | 30 | | (i) Interscholastic extracurricular activities; or 28 |
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| 32 | 31 | | (ii) Administration or maintenance of a school; or 29 |
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| 33 | 32 | | (B) Construction materials or supplies. 30 |
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| 34 | 33 | | 31 |
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| 35 | 34 | | SECTION 2. Arkansas Code § 26 -52-437(b), concerning the conditions 32 |
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| 36 | 35 | | under which textbooks and other instructional materials are exempt from the 33 |
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| 37 | 36 | | gross receipts tax, is amended to read as follows: 34 |
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| 38 | 37 | | (b) Textbooks, library books, and other instructional materials shall 35 |
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| 39 | 38 | | be exempt from the gross receipts tax levied by this chapter if purchased or 36 SB200 |
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| 40 | 39 | | |
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| 41 | 40 | | 2 02/05/2025 1:50:02 PM TNL045 |
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| 42 | 41 | | leased by: 1 |
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| 43 | 42 | | (1) An Arkansas public school district or Arkansas public school 2 |
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| 44 | 43 | | that receives state funding; or 3 |
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| 45 | 44 | | (2) The State of Arkansas for free distribution to Arkansas 4 |
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| 46 | 45 | | public school districts or Arkansas public schools. 5 |
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| 47 | 46 | | 6 |
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| 48 | 47 | | 7 |
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