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Taxes & Budget

HB1089

To Exempt Morgan Nick Foundation From Sales And Use Tax.

Failed

Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment

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AI-Generated Summary

House Bill 1089 proposes an amendment to the Arkansas Code to grant the Morgan Nick Foundation, Inc. of Alma, an exemption from all state and local sales and use taxes. The bill specifies that gross receipts or gross proceeds derived from sales to the foundation will no longer be subject to Arkansas gross receipts taxes or compensating use taxes. Furthermore, it explicitly exempts the foundation from any city and county sales and use taxes. The legislation is scheduled to take effect on the first day of the second calendar month following the date the act becomes law.

Potential Impact Analysis

Who Might Benefit?

The primary beneficiary is the Morgan Nick Foundation, Inc., a non-profit organization focused on child safety and abduction prevention, which will reduce its operating costs by being exempt from state and local sales and use taxes on its purchases.

Who Might Suffer?

The primary entities negatively impacted would be state, city, and county governments, which will see a minor reduction in their tax revenue collections as a result of the exemption granted to the foundation.

Read Full Bill on arkleg.state.ar.us