HB1319

House Bill 1319 proposes a state sales tax exemption for disabled veterans, their spouses, and their surviving, unremarried spouses. The exemption applies to the sale of tangible personal property, specified digital products, digital codes, or services purchased at a physical location within Arkansas. Beneficiaries are required to obtain and present a specific identification card issued by the Department of Veterans Affairs. The bill caps the annual tax exemption benefit at $5,000 per taxpayer. If a taxpayer exceeds this limit, the excess amount becomes a direct sales tax liability subject to penalties and interest. Furthermore, the bill explicitly clarifies that this state-level exemption does not apply to local government sales and use taxes, ensuring those revenue streams remain unaffected. Fraudulent claims of this exemption are classified as a Class C misdemeanor. The Departments of Veterans Affairs and Finance and Administration are tasked with creating rules to administer the program and manage the issuance of secure identification cards.