AR HB1196

Exempts water used exclusively in poultry farm operations from Arkansas gross receipts tax and compensating use tax under Arkansas Code § 26-52-453.

Defines "poultry farm" as a facility for commercial poultry production, including broiler/turkey grow-out houses, laying houses, hatching units, nursery units, and breeding houses.

Requires water subject to exemption to be separately metered from water used for other purposes, though rules may establish additional or alternate metering requirements.

Authorizes the Secretary of the Department of Finance and Administration to require water utilities to obtain taxpayer certificates confirming eligibility for the exemption.

Directs the Secretary to promulgate rules by October 1, 2021 for administering the exemption, with the provision to file after Legislative Council approval if needed; Section 1 becomes effective on the first day of the calendar quarter following enactment.