HB2280 Summary

• Amends Arkansas Code § 26-52-319 to levy a zero percent (0%) gross receipts tax on natural gas, coal, and electricity sold to manufacturers for direct use in the manufacturing process, effective July 1, 2015.

• Natural gas, coal, and electricity used by manufacturers remain subject to constitutional excise taxes of one-eighth of one percent (1/8 of 1%) under Amendment 75 and one-half percent (½%) under Amendment 91.

• Distributes collected taxes as follows: 76.6% to general revenues, 8.5% to the Property Tax Relief Trust Fund, and 14.9% to the Educational Adequacy Fund.

• Establishes that manufacturers must separately meter or store reduced-rate energy from other uses, and sellers may require certification that purchasers are eligible for the reduced excise tax rate.

• Makes substantially identical amendments to Arkansas Code § 26-53-148 for the compensating use tax, with all provisions effective July 1, 2018.