AR SB261

Establishes a sales and use tax exemption for timber machinery and equipment sold to members of the timber industry engaged primarily in commercial production, harvesting, or processing of timber.

Defines "timber machinery and equipment" as implements used exclusively in timber production, harvesting, or processing, including all-terrain vehicles with three to six wheels, maximum 50 inches in width, and engine displacement not exceeding 1,000 cubic centimeters.

Excludes from the exemption: machinery already exempt under existing code § 26-52-431, motor vehicles subject to highway registration and licensing, and hand tools.

Requires the exemption for all-terrain vehicles to be administered as a rebate rather than a direct exemption.

Becomes effective on the first day of the calendar quarter following the bill's enactment.