HB1342
To Amend The Services To Which Sales Tax Applies; And To Exempt Certain Storage Services From Sales Tax.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
Sponsors
AI-Generated Summary
House Bill 1342 seeks to amend the Arkansas tax code regarding services subject to sales tax. Specifically, the bill removes boat storage and docking fees from the list of taxable services. Additionally, it repeals the sales tax currently applied to the furnishing of camping or trailer spaces at public or private campgrounds for stays of less than a month. The bill establishes an effective date for these changes as the first day of the calendar quarter following the bill's enactment.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill are individuals and businesses that utilize boat storage and docking facilities, as well as recreational campers or travelers who stay in campgrounds or trailer parks on a short-term basis. Owners and operators of marinas, boat storage facilities, and campgrounds may also benefit from increased competitiveness or customer demand due to the lower cost of their services.
Who Might Suffer?
The primary entity negatively impacted by this bill is the State of Arkansas, which would experience a reduction in sales tax revenue collected from boat docking/storage fees and short-term campground rentals. Local governments that receive portions of these tax revenues may also see a decrease in funding.
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