AR SB332

Amends Arkansas Code § 26-52-447(f) to allow taxpayers to claim tax refunds on partial replacement and repair of manufacturing machinery using either a direct pay or limited direct pay sales and use tax permit.

Establishes a new "limited direct pay" permit option under § 26-52-509(a) that allows eligible consumers to accrue and remit gross receipts and compensating use taxes directly to the Department of Finance and Administration on qualifying purchases.

Defines "eligible purchases" as property or services subject to refund under §§ 26-52-447 and 26-53-149, and restricts limited direct pay permits to persons eligible for those specific tax refunds.

Makes similar amendments to § 26-53-149(f) for use tax refunds on manufacturing machinery and equipment using the same direct pay or limited direct pay permit requirements.

Declares an emergency effective date, citing that Arkansas ranks worst among southeastern states on manufacturing machinery taxation and is losing competitiveness and jobs to surrounding states with more favorable tax treatment.