HB1465
To Provide A State Sales Tax Exemption For Disabled Veterans.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
Sponsors
AI-Generated Summary
House Bill 1465 establishes a state sales tax exemption for disabled veterans, defined as those who qualify for existing Arkansas property tax exemptions. Eligible individuals, or their authorized household members, may claim an exemption for purchases of tangible personal property, digital products, and services up to a maximum of $25,000 per calendar year. To utilize this benefit, veterans must obtain an exemption card from the Department of Finance and Administration. The bill specifically clarifies that this exemption applies only to state-level gross receipts taxes and does not extend to local government sales taxes or compensating use taxes. Furthermore, the bill amends several sections of the Arkansas Code to ensure that local taxes for capital improvements, economic development, and other municipal purposes remain applicable to sales that are otherwise exempt under this new provision. The provisions are set to take effect on 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 disabled veterans residing in Arkansas who meet the existing criteria for property tax exemptions, along with authorized members of their households. These individuals would see a reduction in their personal expenses by being exempted from state sales taxes on eligible purchases up to $25,000 annually.
Who Might Suffer?
The state government would be negatively impacted by a reduction in total sales tax revenue collected. Additionally, the Department of Finance and Administration would face an increased administrative burden, as it would be responsible for verifying eligibility, issuing exemption cards, and monitoring the $25,000 annual spending cap for each claimant.
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