AR HB1965

Creates the "Arkansas 21st Century Fund" as a miscellaneous state fund to hold revenues authorized by law and carry forward annual balances for use by the General Assembly for any purposes it deems appropriate.

Repeals Arkansas Code § 26-51-201(e), which previously directed that sales and use tax revenues from remote sellers exceeding $70,000,000 be used to reduce the state income tax rate of 4.5%.

For fiscal year 2017-2018, deposits all revenues from specified sales and use taxes exceeding $2,441,100,000 into the Arkansas 21st Century Fund instead of directing them to other designated uses.

Modifies provisions regarding food and food ingredients sales tax to consolidate conditions for tax elimination, with the Director determining if federal law authorizes collection from remote sellers and if certain revenue thresholds are met.

Declares an emergency effective upon Governor's approval or expiration of veto period, citing the need to establish an orderly method for handling anticipated additional tax collections from remote sellers.