HB1250
To Create A Sales Tax Holiday For Disaster-preparedness Supplies To Encourage Disaster-preparedness.
Last Action (Jan. 27, 2025): WITHDRAWN BY AUTHOR
Sponsors
AI-Generated Summary
House Bill 1250 proposes the creation of an annual sales tax holiday in Arkansas specifically for disaster-preparedness supplies. The bill defines qualifying items into categories such as batteries, fastening supplies, food-related items, general supplies, and safety equipment. Examples of eligible items include portable generators, smoke detectors, bottled water, duct tape, and first-aid kits. The exemption from state gross receipts and compensating use taxes would apply annually from 12:01 a.m. on the first Saturday of November through 11:59 p.m. the following Sunday. The Arkansas Department of Finance and Administration would be responsible for promulgating rules to implement this policy. The bill aims to encourage citizens to proactively purchase emergency supplies to improve readiness for natural or man-made disasters.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are Arkansas residents and households, who would experience reduced costs when purchasing essential emergency supplies. Retailers of home improvement, hardware, and safety equipment may also benefit from increased consumer traffic and sales volume during the tax-free weekend.
Who Might Suffer?
The primary entity negatively impacted is the state government, which would experience a reduction in sales and use tax revenue for the duration of the tax holiday. Municipalities or counties that rely on local sales tax collections may also be impacted depending on how the exemption interacts with local tax ordinances.
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