HB1796
To Create A Sales Tax Holiday For Gun Safes And Gun Safety Devises.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
Sponsors
AI-Generated Summary
House Bill 1796 proposes a temporary sales tax holiday in Arkansas for specific firearm safety equipment. The bill exempts the gross receipts and compensating use tax on the purchase of 'gun safes' and 'gun safety devices' for a one-year period, beginning at 12:01 a.m. on July 1, 2023, and ending at 11:59 p.m. on June 30, 2024. The legislation defines a 'gun safe' as a locking container intended for firearm storage and a 'gun safety device' as an integral, programmable computerized locking device installed on a firearm. The Arkansas Department of Finance and Administration is tasked with promulgating the rules necessary to implement and administer this tax exemption. The bill mandates that these rules be filed with the Secretary of State and the Legislative Council to ensure readiness by the start of the exemption period.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are individuals and entities looking to purchase gun safes or gun safety devices, as they will be exempt from paying state sales tax on these items during the specified one-year period. Additionally, retailers of these products may see increased sales volume 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 tax revenue due to the temporary suspension of gross receipts and compensating use taxes on these specific products. No other specific groups are identified as suffering a direct negative impact from this legislation.
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