AR SB262

Exempts tangible personal property (except alcoholic beverages) donated by sellers from gross receipts tax and compensating use tax if donated to charitable organizations or for charitable causes.

Defines "charitable organization" as entities created for philanthropic, educational, humanitarian, or religious pursuits, including nonprofits organized under state law or qualified under 26 U.S.C. § 501(c)(3).

Defines "charitable cause" as philanthropic purposes benefiting unrelated private individuals who either use donated property to recover from natural disasters (tornado, earthquake, flood, storm, fire) or are indigent/disabled and use property for purposes otherwise served by charitable organizations.

Requires donated individuals to have no family relation within one degree of consanguinity to the seller or seller's employees.

Director of the Department of Finance and Administration may promulgate rules to implement the exemption, effective the first day of the second calendar month after the act becomes law.