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
The implications of SB377 are extensive, particularly regarding state tax law and local government finances. Upon the enactment of this bill, while state sales taxes will effectively be removed for grocery items, local municipalities and counties will retain the authority to apply their own sales taxes on these transactions, as stipulated in existing frameworks. As such, the bill strives to balance the need for revenue generation at the local level while easing the financial constraints on residents purchasing essential food items. This dual structure may further prompt local discussions or reforms regarding how they tax groceries and other essential goods.
Summary
Senate Bill 377, titled the Grocery Tax Relief Act, proposes significant amendments to the sales and use taxes levied on food and food ingredients in Arkansas. The primary objective of the bill is to exempt gross receipts from the sale of these items from state-level sales and use taxes, thereby reducing the overall tax burden on constituents who purchase groceries. This legislative move follows a historical context rooted in the Referred Act 19 of 1958, which established the foundational sales tax framework regarding food items. Strictly speaking, the bill aims to alleviate financial pressure on families, particularly in the face of rising food prices and inflation.
Contention
Despite the apparent benefits, the bill is not without its points of contention. Critics may raise concerns regarding the potential impact on fiscal revenues, particularly at the state level, where the removal of grocery taxes could lead to a reduction in funding for critical state services such as education and public health. Proponents of the bill assert that the economic benefits of increased disposable income for families will stimulate local economies and offset any potential loss in state revenue. Debates surrounding SB377 will likely center on these opposing views, as lawmakers consider the broader economic ramifications of tax relief measures against individual and community needs.
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 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 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 Exempt Over-the-counter Drugs Prescribed By A Medical Professional From Sales And Use Tax; And To Clarify Which Medical Professionals May Prescribe Drugs That Are Exempt From Sales And Use Tax.
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.