To Create The Grocery Tax Relief Act; To Amend The Law Concerning The Sales And Use Taxes Levied On Food And Food Ingredients, As Affirmed By Referred Act 19 Of 1958; And To Exempt Groceries From State Sales And Use Taxes.
Impact
If passed, this legislation would significantly alter the existing framework of sales tax laws in Arkansas. The changes would directly affect the overall tax liabilities of Arkansas residents, particularly benefiting low- and moderate-income families who often bear a heavier burden from sales taxes on essential goods. Furthermore, the bill could influence market dynamics by potentially lowering grocery prices and fostering increased competition among retailers. The effective date of the bill is set for January 1, 2026, allowing for a transition period for implementation.
Summary
House Bill 1685, known as the Grocery Tax Relief Act, seeks to amend the existing sales and use tax laws concerning food and food ingredients in Arkansas. The bill aims to exempt food and food ingredients from state sales and use taxes, aligning with the legislative intent to relieve grocery expenses for residents. The bill highlights a focus on essential commodities, ensuring that residents can access affordable food items without the added burden of state taxes. However, municipal and county taxes will still apply, allowing local governments to retain some level of taxation authority over groceries.
Contention
Key points of contention surrounding HB 1685 center on potential fiscal impacts. While proponents argue that it will aid families by lowering grocery costs, critics raise concerns about the implications for state revenue. The ongoing need for funding essential services, particularly in education and healthcare, could be jeopardized if substantial tax revenue is lost due to the exemptions proposed in the bill. There may be clashes among state and local stakeholders over how to balance tax relief with sufficient funding for public services.
To Create A Sales And Use Tax Exemption For The Purchase Of A Business Vehicle By A Food Pantry; And To Create A One-time Rebate Of State Sales And Use Tax For The Purchase Of A Business Vehicle In 2022 By A Food Pantry.
To Increase The Sales And Use Tax Exemption For Used Motor Vehicles; And To Repeal The Special Rate Of Tax For Certain Used Motor Vehicles, Trailers, And Semitrailers.
To Increase The Sales And Use Tax Exemption For Used Motor Vehicles; And To Amend The Reduced Sales And Use Tax Rate Applicable To Purchases Of Used Motor Vehicles.
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.
To Exempt A Manufacturer's Rebate On A Motor Vehicle From Sales And Use Tax; And To Exclude A Manufacturer's Rebate On A Motor Vehicle From The Definition Of "sales Price" Used For Purposes Of Determining Sales And Use Taxes.
To Create The Grocery Tax Relief Act; To Amend The Law Concerning The Sales And Use Taxes Levied On Food And Food Ingredients, As Affirmed By Referred Act 19 Of 1958; And To Exempt Groceries From State Sales And Use Taxes.
To Increase The Sales And Use Tax Exemption For Used Motor Vehicles; And To Repeal The Special Rate Of Tax For Certain Used Motor Vehicles, Trailers, And Semitrailers.
To Amend The Law Concerning The Collection Of Sales And Use Tax On Motor Vehicles, Trailers, Semitrailers, And Motorboats, As Affirmed By Referred Act 19 Of 1958; And To Subject Certain Used Motorboats To A Special Rate Of Tax.
Increasing the annual license fees of electric and hybrid passenger vehicles, trucks and electric motorcycles and distributing the fees to the state highway fund and the special city and county highway fund, modifying the threshold limit for allowing quarterly payments of certain truck and truck tractor annual vehicle registration fees and eliminating the two-quarter grace period for truck or truck tractor owners that have delinquent quarterly payments before certain penalties apply.