AR SB523

Amends Arkansas Code §§ 26-52-317 and 26-53-145 to establish conditions under which the state can reduce sales and use taxes on food and food ingredients to zero percent (0%).

Director of Department of Finance and Administration must determine that federal law authorizes remote sales tax collection and that collecting from sellers with no physical presence in Arkansas would increase net available general revenues equal to or greater than 150% of food sales tax collected.

Alternative trigger allows zero percent (0%) tax rate if aggregate deductions from designated funds (Educational Adequacy Fund, bonds, tourist facilities, desegregation expenses, water/waste disposal bonds) decline by $35 million or more during a six-month period compared to the prior year.

Maintains current tax rate of 1.375% on food and food ingredients with distribution: 76.6% to general revenues, 8.5% to Property Tax Relief Trust Fund, and 14.9% to Educational Adequacy Fund, until conditions for zero percent rate are met.

Updates cross-references in §§ 19-5-1103(b), 19-5-1227(b), 19-6-201(58), and 19-6-201(60) to reflect the reorganized subsection structure.