AR
Arkansas Senate Bill SB441

Arkansas 2023 Regular Session

Arkansas Senate Bill SB441

Introduced
3/16/23  
Refer
3/16/23  
Report Pass
4/3/23  
Engrossed
4/3/23  
Refer
4/3/23  
Report Pass
4/4/23  
Enrolled
4/6/23  
Chaptered
4/11/23  

Caption

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.

Impact

The amendments proposed by SB441 will directly affect statutes related to the sales and use tax on machinery and equipment in Arkansas. The bill allows for exemptions on machinery and equipment that are used in the manufacturing process, including repairs and replacements, as well as exemptions for machinery placed in inventory. This could significantly reduce operational costs for manufacturers by encouraging investment in new and replacement equipment, facilitating a modernized manufacturing landscape that could enhance economic activity in the state.

Summary

Senate Bill 441 aims to amend the existing sales and use tax laws in Arkansas to provide exemptions related to specific machinery and equipment. It seeks to clarify definitions and processes pertaining to what constitutes machinery that is 'used directly' in manufacturing, thus enabling businesses to enhance their operations without bearing the financial burden of taxes on certain equipment purchases. By expanding the criteria for tax exemptions, the bill is designed to support the manufacturing sector by minimizing costs associated with maintaining and upgrading machinery.

Sentiment

The overall sentiment surrounding SB441 appears to be highly supportive among business and manufacturing circles, as many stakeholders view the tax exemptions as crucial to fostering growth and competitiveness. Advocates are optimistic that these adjustments will lead to job creation and retention, while providing businesses with the necessary tools to thrive. However, there are concerns regarding potential impacts on state revenue, highlighting a tension between promoting business interests and ensuring adequate funding for public services.

Contention

Notably, some discussions around SB441 have raised questions about the potential for abuse of tax exemptions, with critics arguing that without strict regulations, the bill could lead to the misuse of exemptions intended for genuine manufacturing processes. Moreover, there are debates over the balance between encouraging business growth and maintaining necessary state revenues, which may require careful monitoring to ensure that the bill's intended benefits do not come at too great a cost to public funding.

Latest SB441 Activity

Companion Bills

No companion bills found.

Previously Filed As

AR HR1009

To Authorize The Introduction Of A Nonappropriation Bill To Amend The Arkansas Data Centers Act Of 2023 And To Prohibit Foreign-party-controlled Ownership Of A Digital Asset Mining Business.

AR SR5

To Authorize The Introduction Of A Nonappropriation Bill To Amend The Arkansas Data Centers Act Of 2023 And To Prohibit Foreign-party-controlled Ownership Of A Digital Asset Mining Business.

AR SB78

To Amend The Arkansas Data Centers Act Of 2023; To Prohibit Foreign-party-controlled Ownership Of A Digital Asset Mining Business; And To Declare An Emergency.

AR SB79

To Amend The Arkansas Data Centers Act Of 2023; To Provide For The Regulation Of Digital Asset Mining Businesses; And To Declare An Emergency.

AR SR16

To Authorize The Introduction Of A Nonappropriation Bill To Amend The Arkansas Data Centers Act Of 2023 And To Amend The Requirements For A Digital Asset Mining Business Or Business Using A Blockchain Network.

AR HR1015

To Authorize The Introduction Of A Nonappropriation Bill To Amend The Arkansas Data Centers Act Of 2023 And To Amend The Requirements For A Digital Asset Mining Business Or Business Using A Blockchain Network.

AR HR1020

To Authorize The Introduction Of A Nonappropriation Bill To Amend The Arkansas Data Centers Acts Of 2023, To Regulate Digital Asset Mining Businesses And Businesses Utilizing A Blockchain Network, And To Declare An Emergency.

AR SR17

To Authorize The Introduction Of A Nonappropriation Bill To Amend The Arkansas Data Centers Acts Of 2023, To Regulate Digital Asset Mining Businesses And Businesses Utilizing A Blockchain Network, And To Declare An Emergency.

AR SR2

To Authorize The Introduction Of A Nonappropriation Bill Amending The Revenue Stabilization Law, Creating Funds, Repealing Funds, And Making Transfers To And From Funds And Fund Accounts.

AR HR1011

To Authorize The Introduction Of A Nonappropriation Bill Amending The Revenue Stabilization Law, Creating Funds, Repealing Funds, And Making Transfers To And From Funds And Fund Accounts.

Similar Bills

AR HB1521

To Repeal Certain Unused, Underused, Or Unfunded Tax Incentives.

RI S3027

Levy And Assessment Of Local Taxes

RI H8220

Levy And Assessment Of Local Taxes

RI H6676

Levy And Assessment Of Local Taxes

MN HF893

Sales and use tax provisions modified, and sales tax exemption expanded for capital equipment purchases.

MN SF2124

Sales tax exemption expansion for certain capital equipment purchases

MN SF1378

Sales tax exemption expansion for certain meals and drinks

MN HF706

Sales and use tax provisions modified, sales tax exemption for meals and drinks expanded, and sales tax exemption for capital equipment purchases expanded.