HB1195
To Amend The Sales Tax Levied On Certain Services; And To Exempt Residential Cleaning And Janitorial Work From The Sales Tax.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
Sponsors
AI-Generated Summary
House Bill 1195 proposes an amendment to Arkansas state law regarding the imposition of sales tax on specific services. The bill clarifies that sales tax for cleaning and janitorial work is applicable only to non-residential property. By explicitly defining 'residential' as a single-family residence used as the owner's principal place of residence, the legislation aims to exempt residential cleaning and janitorial services from the state sales tax. The bill modifies the existing Arkansas Code to remove these residential services from the taxable list. The act is scheduled to take effect on the first day of the calendar quarter following its enactment.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries include owners of single-family residences who utilize professional cleaning or janitorial services, as they will no longer be required to pay state sales tax on these services. Additionally, residential cleaning businesses and independent janitorial service providers may benefit from increased demand for their services due to the reduced cost for consumers.
Who Might Suffer?
The primary entity negatively impacted is the State of Arkansas, which will experience a reduction in sales tax revenue collected from these services. This decrease in tax receipts may affect the state's general budget or the funding available for public services and programs.
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