HB1388
To Exempt Certain Storage Services From Sales Tax; And To Exempt The Service Of Furnishing Accommodations By A Tourist Camp Or A Tourist Court From Sales Tax, As Affirmed By Referred Act 19 Of 1958.
Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.
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AI-Generated Summary
House Bill 1388 proposes amendments to the Arkansas Gross Receipts Act of 1941 to modify the application of state sales tax. The bill explicitly excludes tourist camps and tourist courts from the requirement to collect sales tax on the furnishing of lodging accommodations. Additionally, the bill repeals existing sales tax provisions currently applied to boat storage and docking fees. It also repeals taxes on the furnishing of short-term camping or trailer spaces at public or private campgrounds, with the exception of federal campgrounds. The changes are scheduled to take effect on the first day of the calendar quarter following the enactment of the legislation.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries include owners and operators of tourist camps, tourist courts, and privately owned campgrounds, who will no longer need to collect or remit sales tax on these specific services. Additionally, individuals who rent boat storage or docking spaces, as well as those utilizing short-term camping or trailer spaces at non-federal campgrounds, will benefit from the removal of the sales tax on these transactions.
Who Might Suffer?
The primary entity negatively impacted is the state government of Arkansas, which will experience a reduction in sales tax revenue collected from boat storage fees, camping space rentals, and specific tourist accommodations. Local governments that receive a portion of state sales tax distributions may also face a decrease in funding due to the resulting reduction in the overall tax base.
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