AR HB1259

Adds Arkansas Code § 26-52-451 to create a sales and use tax exemption for parts purchased to modify, replace, or repair existing agricultural machinery and equipment used in commercial agricultural production in the state.

Exempts parts including aviation machinery and equipment from both the gross receipts tax under the Arkansas Gross Receipts Act of 1941 and the compensating use tax under the Arkansas Compensating Tax Act of 1949.

Exempts services related to initial installation, alteration, addition, cleaning, refinishing, replacement, or repair of agricultural machinery and equipment, including aviation machinery and equipment, used in commercial agricultural production in the state.

Takes effect January 1, 2016.