HB1190
To Provide A Sales And Use Tax Exemption For Certain Utilities Used By A Swine Farm.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
Sponsors
AI-Generated Summary
House Bill 1190 amends existing Arkansas tax law to provide a sales and use tax exemption for water used in the commercial production of swine. The bill extends the current exemption, which already applies to water used in poultry farming, to include swine farms. It mandates that any water qualifying for this tax exemption must be separately metered from water used for other purposes, unless alternative requirements are established by the Department of Finance and Administration. The Secretary of the Department of Finance and Administration is authorized to require taxpayers to obtain a certificate verifying their eligibility for the exemption. The bill also stipulates that water used for purposes other than commercial swine or poultry farming remains subject to full gross receipts and compensating use taxes. The provisions are set to take effect on the first day of the second calendar month following the bill's effective date.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill are owners and operators of commercial swine farms in Arkansas, who will reduce their operational expenses by no longer paying sales and use tax on water used for their farming operations.
Who Might Suffer?
The primary entity negatively impacted is the State of Arkansas, which will experience a reduction in tax revenue due to the new exemption. Additionally, utility providers may face administrative costs related to the requirements for separate metering and documentation for taxpayers claiming the exemption.
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