AR SB26

Extends the zero percent (0%) sales and use tax rate on natural gas and electricity sold to manufacturers for direct use in manufacturing to also include coal, effective July 1, 2015

Maintains existing exemptions from the one-eighth of one percent (1/8 of 1%) excise tax levied under Arkansas Constitution Amendment 75 and the one-half percent (½%) excise tax levied under Arkansas Constitution Amendment 91 and Amendment 101

Applies the reduced tax treatment to manufacturers classified within sectors 31-33 or sector code 115111 of the North American Industry Classification System, and generators of electric power using combined-cycle gas turbine technology

Requires natural gas, electricity, and coal subject to the reduced tax rate to be separately metered or otherwise established, with sellers able to require certificates of eligibility from consumers

Taxes collected from the reduced rate are distributed with 76.6% to general revenues, 8.5% to the Property Tax Relief Trust Fund, and 14.9% to the Educational Adequacy Fund