HB1465 Summary

• Creates a state sales tax exemption for disabled veterans (defined as those qualifying for property tax exemption under § 26-3-306) on tangible personal property, digital products, digital codes, and services.

• Extends the exemption to household members authorized to make purchases on behalf of the disabled veteran in their absence, but exemption applies only to in-state physical location sales.

• Exemption does not apply to local government sales taxes or the Arkansas Compensating Use Tax.

• Limits the exemption to $25,000 per calendar year; amounts exceeding this limit are treated as direct sales tax liability subject to recovery with penalties and interest.

• Requires disabled veterans to submit a letter from the U.S. Department of Veterans Affairs to the Department of Finance and Administration and receive an exemption card to qualify; amends multiple local and county tax codes to apply the same exemption to their respective taxes.