AR HB1319

Disabled veterans, their spouses, and unremarried surviving spouses are exempt from Arkansas state sales tax on tangible personal property, digital products, and services purchased at physical locations in the state

The exemption is capped at $5,000 per calendar year per taxpayer, with excess claims treated as direct sales tax liability subject to penalties and interest

Disabled veterans must obtain a special identification card with photo and serial number from the Department of Veterans Affairs; surviving spouses must submit certification from the U.S. Department of Veterans Affairs

The exemption applies only to state gross receipts tax and does not extend to local government sales and use taxes or compensating use tax, though local governments retain authority to tax these purchases

Fraudulently claiming the exemption is a Class C misdemeanor; the act takes effect on the first day of the calendar quarter following its effective date