AR HB1888

Adds Arkansas Code § 26-52-452 to create a sales and use tax exemption for eligible construction materials used by the Arkansas Department of Transportation in public construction projects.

Defines "eligible construction material" as tangible personal property used directly in public construction projects that will remain part of the completed project or are consumed during construction, excluding construction equipment, tools, motor vehicle fuel, and other property that do not remain part of the project.

Exempts gross receipts and gross proceeds from the sale of eligible construction materials from both the gross receipts tax and the compensating use tax under the Arkansas Compensating Tax Act of 1949.

Declares an emergency based on the state's need for highway, road, street, and bridge construction and maintenance, and to allow the Department of Transportation to dedicate more funds toward roadway improvements.

Makes the exemption effective July 1, 2019.