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