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 SENATE BILL 289 3
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By: Senator J. Dotson 5
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For An Act To Be Entitled 8
AN ACT TO CUT THE STATEWIDE SALES TAX RATE BY ONE -9
EIGHTH PERCENT TO REDUCE THE SURPLUS FUNDS COLLECTED 10
FROM ARKANSAS TAXPAYERS; TO AMEND THE SALES AND USE 11
TAX RATE; AND FOR OTHER PURPOSES. 12
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Subtitle 15
TO CUT THE STATEWIDE SALES TAX RATE BY 16
ONE-EIGHTH PERCENT TO REDUCE THE SURPLUS 17
FUNDS COLLECTED FROM ARKANSAS TAXPAYERS. 18
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 20
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SECTION 1. DO NOT CODIFY. Legislative findings. 22
The General Assembly finds that: 23
(1) Arkansas has the third highest combined state and local 24
sales tax rate in the nation; 25
(2) One (1) of the reasons Arkansas has a high sales tax rate is 26
because the state levies more sales tax than is required to fund the Property 27
Tax Relief Trust Fund, which has a growing balance; and 28
(3) It is necessary to provide relief from sales tax for all 29
Arkansans. 30
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SECTION 2. Arkansas Code § 26 -52-302(c)(1), concerning the additional 32
sales tax levied to fund property tax relief, is amended to read as follows: 33
(c)(1) Except for food and food ingredients that are taxed under § 26 -34
52-317 and except for used motor vehicles, trailers, and semitrailers that 35
are taxed under § 26 -52-324, there is levied an additional excise tax of one-36 SB289
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half of one percent (0.5%) three-eighths percent (3/8%) upon all taxable 1
sales of property, specified digital products, digital codes, and services 2
subject to the tax levied by this chapter. 3
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SECTION 3. Arkansas Code § 26 -53-107(c)(1), concerning the additional 5
use tax levied to fund property tax relief, is amended to read as follows: 6
(c)(1) There is levied an additional excise tax of one-half of one 7
percent (0.5%) three-eighths percent (3/8%) upon all tangible personal 8
property, specified digital products, digital codes, and taxable services 9
subject to the tax levied by this subchapter except for food and food 10
ingredients that are taxed under § 26 -53-145 and except for used motor 11
vehicles, trailers, and semitrailers that are taxed under § 26 -53-150. 12
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SECTION 4. EFFECTIVE DATE. Sections 2 and 3 of this act are effective 14
on the first day of the calendar quarter following the effective date of this 15
act. 16
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