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AR HB1661
Bill
Status
5/1/2023
Primary Sponsor
Kendon Underwood
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AI Summary
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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
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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
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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
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Updates tax distribution fund provisions by removing references to the repealed food tax revenue sources from the Property Tax Relief Trust Fund and Educational Adequacy Fund
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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