AR HB1172

Creates a sales and use tax exemption for mortality composting devices sold to commercial livestock or poultry producers under Arkansas Code Title 26, Chapter 52, Subchapter 4.

Defines "mortality composting device" as a device designed for biological decomposition of organic matter under controlled aerobic conditions that confines composting materials to a container or receptacle rather than a building or concrete bunker.

Excludes from the exemption: attachments and accessories not essential to operation, maintenance and repair services, replacement parts, and mixing materials such as water, oxygen, nitrogen sources, straw, corn stalks, sawdust, woodchips, and litter.

Exempts gross receipts and gross proceeds from the sale of new or used mortality composting devices from both the gross receipts tax and the compensating use tax under the Arkansas Compensating Tax Act of 1949.

Effective date is the first day of the calendar quarter following the act's effective date (approved April 11, 2023).