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AR HB1661

Bill

Status

Failed

5/1/2023

Primary Sponsor

Kendon Underwood

Click for details

Origin

House of Representatives

94th General Assembly (2023 Regular)

AI Summary

  • Exempts food and food ingredients from Arkansas sales and use taxes by repealing the separate 1.375% tax rate previously applied to these items under §§ 26-52-317 and 26-53-145

  • Removes food and food ingredients from the gross receipts and compensating use tax bases, making them subject only to constitutional Amendment 75 tax and municipal/county taxes

  • Creates a new § 26-52-455 establishing that food and food ingredients (excluding prepared food) are exempt from both gross receipts tax and compensating use tax

  • Updates tax distribution fund provisions by removing references to the repealed food tax revenue sources from the Property Tax Relief Trust Fund and Educational Adequacy Fund

  • Effective on the first day of the calendar quarter following the effective date of the act

Legislative Description

To Repeal The Sales And Use Tax On Food And Food Ingredients; And To Exempt Food And Food Ingredients From Sales And Use Tax.

Last Action

Died in House Committee at Sine Die Adjournment

5/1/2023

Committee Referrals

Revenue and Taxation3/16/2023

Full Bill Text

No bill text available