AR
Arkansas Senate Bill SB419

Arkansas 2025 Regular Session

Arkansas Senate Bill SB419

Introduced
3/10/25  

Caption

To Create A Sales And Use Tax Exemption For Certain Sales To A Cultivation Facility.

Impact

If enacted, SB 419 would adjust the Arkansas Code to include these tax exemptions, which could significantly reduce operational costs for businesses involved in the medical marijuana industry. By exempting specific purchases from taxation, the bill is expected to encourage growth and sustainability within the sector, facilitating the overall aim of improving access to medical marijuana for patients in need. It reflects the state's fiscal approach to supporting the agricultural cultivation of marijuana products deemed necessary for medical purposes.

Summary

Senate Bill 419 aims to create a sales and use tax exemption for specific sales made to cultivation facilities associated with medical marijuana production in Arkansas. The bill defines 'cultivation facility' according to the state constitution and outlines the types of sales that will be exempt from both gross receipts and compensating use taxes. This includes items such as seeds for marijuana cultivation, equipment specifically used in marijuana production, packaging for finished goods, and utilities that are utilized in the operations of these facilities.

Contention

Although the bill promotes economic development within the medical marijuana industry, it may raise questions and concerns among fiscal conservatives regarding potential revenue losses from state taxes. Critics might argue that such tax exemptions could set a precedent for other sectors seeking similar treatment, leading to a lack of uniformity in tax policy. Additionally, the discussion surrounding the broader implications of marijuana regulation and its intersection with state law remains a contentious issue, particularly as it relates to public health and safety.

Companion Bills

No companion bills found.

Previously Filed As

AR SB530

To Create A Sales And Use Tax Exemption For Certain Sales To A Cultivation Facility.

AR SB441

To Amend The Sales And Use Tax Laws Concerning Exemptions Related To Certain Machinery And Equipment; And To Allow A Sales And Use Tax Exemption For Certain Machinery And Equipment Placed In Inventory.

AR SB256

To Include Machinery And Equipment Used In Research And Development In The Sales And Use Tax Exemption For Certain Machinery And Equipment Used In Manufacturing.

AR HB1190

To Provide A Sales And Use Tax Exemption For Certain Utilities Used By A Swine Farm.

AR HB1654

To Provide Sales And Use Tax Exemptions For Data Centers; And To Provide A Sales And Use Tax Exemption For Data Center Equipment, Data Center Costs, Certain Services Provided To A Data Center, And Electricity Used By A Data Center.

AR HB1740

To Create A Sales And Use Tax Exemption For Sales To The Young Men's Christian Association.

AR HB1490

To Create A Sales And Use Tax Exemption For The Arkansas Museum Of Fine Arts.

AR SB541

To Create A Sales And Use Tax Exemption For Certain Items And Services Sold To A Cemetery.

AR HB1476

To Create A Sales And Use Tax Exemption For Electricity Sold To A Data Center; And To Declare An Emergency.

AR HB1814

To Create An Income Tax Check-off Program For The Arkansas Veterans Cemetery Foundation; And To Create A Sales And Use Tax Exemption For Sales To The Arkansas Veterans Cemetery Foundation.

Similar Bills

No similar bills found.