AR HB1428

Exempts electricity, liquefied petroleum gas, and natural gas used by irrigation wells or rice wells from Arkansas gross receipts tax and compensating use tax.

Utilities sold for purposes other than irrigation or rice well operation remain subject to full gross receipts tax and compensating use tax.

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

Allows the Director of the Department of Finance and Administration to require sellers to obtain certificates from taxpayers certifying eligibility for the exemption.

Takes effect on the first day of the calendar quarter following the effective date of the act.