AR HB1871

Adds new section 26-52-452 to Arkansas Code Title 26, Chapter 52, Subchapter 4 to create sales and use tax exemptions for agricultural equipment and machinery.

Defines "agricultural equipment and machinery" as implements used exclusively and directly in farming, including irrigation pipe, aviation machinery, and crop harvesting implements, but excludes timber production equipment, motor vehicles subject to registration, and hand tools.

Exempts from gross receipts tax and compensating use tax the sale of parts purchased to modify, replace, or repair existing agricultural equipment and machinery.

Exempts from gross receipts tax and compensating use tax services relating to installation, alteration, addition, cleaning, refinishing, replacement, or repair of agricultural equipment and machinery.

Effective date is the first day of the calendar quarter following the date the act becomes law.