AR HB1594

Creates a Farmer Sales Tax Identification Card issued by the Secretary of the Department of Finance and Administration to eligible farmers as an alternative to exemption certificates for claiming sales tax exemptions on farming-related purchases

Eligible farmers must demonstrate resources and capacity to produce food, fiber, grass sod, or nursery products in commercially marketable quantities, and provide Schedule 1040F, 1065, or equivalent tax forms for the most recent three years (or a three-year business plan for new farmers)

Cards expire 8 years from issuance and cost $20 for new applications and $10 for renewals, with fees deposited into the State Central Services Fund

Sellers who accept a farmer sales tax identification card in good faith are relieved of sales tax remittance liability if the purchaser improperly claimed an exemption

Effective January 1, 2026; approved April 14, 2025