AR SB298

Adds new Arkansas Code section 26-52-446 establishing a sales and use tax exemption for electricity, liquefied petroleum gas, and natural gas used by grain drying and storage facilities.

Exempts utilities used for grain drying and storage from the Arkansas Gross Receipts Act of 1941 and the Arkansas Compensating Tax Act of 1949, while utilities sold for other purposes remain fully taxable.

Requires utilities subject to the exemption to be separately metered from utilities used for other purposes, though the Director of the Department of Finance and Administration may establish alternate metering requirements through promulgated rules.

Authorizes the Director of the Department of Finance and Administration to require sellers of utilities to obtain an eligibility certificate from taxpayers before allowing the exemption.

Takes effect on July 1, 2014.