AR SB289

Reduces the additional sales tax rate dedicated to property tax relief from 0.5% (one-half percent) to 0.375% (three-eighths percent), a cut of one-eighth percentage point

Applies the same one-eighth percent reduction to the corresponding use tax rate for tangible personal property, digital products, and taxable services

Exemptions remain unchanged: food and food ingredients, used motor vehicles, trailers, and semitrailers continue to be taxed under separate provisions

Legislative findings cite that Arkansas has the third highest combined state and local sales tax rate in the nation and that the Property Tax Relief Trust Fund has a growing surplus balance

Takes effect on the first day of the calendar quarter following the act's effective date