AR HB2143

Exempts sales and use taxes on construction materials purchased with publicly funded bonds for public road construction projects initiated by the state or political subdivisions.

Defines "eligible construction materials" as tangible personal property used directly in public road projects that either remain part of the completed project or are consumed during construction, excluding equipment, tools, motor vehicle fuel, and similar items.

Applies the exemption only to the portion of road construction projects that are paid for with publicly funded bonds, covering construction, restoration, reconstruction, renovation, or repair of roads, highways, streets, bridges, overpasses, interchanges, or rights-of-way.

Exempts eligible construction materials from Arkansas Gross Receipts Tax (§ 26-52-101 et seq.) and compensating use tax (§ 26-53-101 et seq.).

Director of the Department of Finance and Administration shall promulgate rules for implementation, with the exemption effective on the first day of the calendar quarter following the act's effective date.