AR HB1671

Creates a sales and use tax exemption for qualified nonprofit organizations that are 501(c)(3) entities with annual operating budgets under $200,000 and provide charitable community-based services to Arkansas residents in need

Exemption covers tangible personal property, digital products, digital codes, and services, but excludes motor vehicles, motorboats, aircraft, alcoholic beverages, tobacco, computers, construction materials, household appliances, phones, ATVs, and televisions

Nonprofits must apply to the Secretary of the Department of Finance and Administration for an exemption certificate, which can be revoked if the organization no longer meets qualification requirements

Secretary must report annually to the Legislative Council on the number of exemption certificates issued during the prior year

Effective on the first day of the calendar quarter following the act's effective date; approved April 22, 2025