A quick update of tax bills that are making their way through the assembly. We will be updating over the next few weeks to keep you informed.
The 94th Arkansas Legislative is in full swing and the several bills have been filed in regards to exemptions for sales and use taxes. Some are “pet projects” but many are taxpayer friendly. I have included the bill and notes of where we at SALT Group of Arkansas think this is headed and implications in reporting.
1. HB 1046—exempts a new or used wheelchair-accessible motor vehicle and aftermarket accommodation services from sales tax—See an easy pass on this one as very little impact or loss of tax revenue.
2. HB 1089 Exempts Morgan Nick Foundation from sales and use tax—Easy pass as well, another addition to GR-31 exempt organizations
3. HB 1172 Exempts the sale of new our used mortality composting device used in commercial production of livestock or poultry—We see this as a long overdue exemption and a do-pass
4. HB 1190 Provides a sales tax exemption for water used on a facility used for the commercial production of swine—water is already exempt in the production of poultry and just an expansion to the swine industry, so this should pass as well.
5. HB 1194 Exempts a manufacturer's rebate on a motor vehicle from sales tax—Our opinion is this will die in committee or be sacrificed to pass SB 233
6. HB 1195 Exempts residential cleaning or janitorial work from sales tax—We at SALT Group believe this will die in committee.
7.
There are several other bills in progress, but these are progressing more quickly than others. A complete up guide is provided by the Arkansas State Chamber of Commerce at:
www.arkansasstatechamber.com/governmental-affairs/legislative-tracking/