AR HB2064

Reduces sales and use tax rates on utilities (liquefied petroleum gas, natural gas, and electricity) used by qualifying agricultural structures and agriculture/horticulture/aquaculture equipment for commercial purposes, effective July 1, 2011.

Sets initial tax rate at 4% beginning July 1, 2011, reducing to 2.625% beginning July 1, 2012, replacing standard gross receipts and compensating use tax rates.

Defines qualifying agricultural structures as confinement housing for poultry or livestock and commercial milking facilities; defines qualifying equipment as cooling units, irrigation equipment, pond aeration equipment, grain dryers, and holding/sorting tanks used commercially.

Distributes collected taxes with 76.6% to general revenues, 8.5% to Property Tax Relief Trust Fund, and 14.9% to Educational Adequacy Fund.

Requires utilities to be separately metered from other uses and may require taxpayers to obtain certificates of eligibility; taxes remain subject to constitutional excise tax and municipal/county gross receipts taxes.