SB215
To Provide A Sales And Use Tax Exemption For Working Horses And Fencing Used In A Commercial Agricultural Production.
Last Action (May 1, 2023): Sine Die adjournment
Sponsors
AI-Generated Summary
Senate Bill 215 amends Arkansas state law to create a sales and use tax exemption for specific tangible personal property used in commercial agricultural production. Under the bill, 'working horses' and fencing materials used to contain or separate livestock in commercial operations would be exempt from gross receipts and compensating use taxes. The legislation explicitly defines 'commercial agricultural production' and 'working horse,' excluding horses used for racing, showing, or breeding purposes from the exemption. The bill 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 are commercial agricultural producers and livestock farmers in Arkansas. By eliminating sales and use tax on working horses and fencing materials, these individuals and businesses can reduce their operational capital costs and tax burden associated with maintaining their agricultural infrastructure and livestock management.
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 exemptions. This decrease in collected sales and use tax may potentially affect the state's budget or the funding available for public services and projects that rely on that revenue stream.
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