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Taxes & Budget

SJR19

An Amendment To The Arkansas Constitution To Exempt Food And Food Ingredients From The Excise Tax Levied Under Arkansas Constitution, Amendment 75.

Introduced

Last Action (Feb. 12, 2025): Sine Die adjournment

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AI-Generated Summary

Senate Joint Resolution 19 proposes a constitutional amendment to the Arkansas Constitution to exempt food and food ingredients from the excise tax established under Amendment 75. Amendment 75 currently authorizes the levying of taxes for specific state purposes, and this resolution seeks to carve out food items from that tax burden. As a joint resolution, it requires approval by both chambers of the Arkansas General Assembly before being submitted to the state's electors for final ratification in a general election. The resolution aims to reduce the tax burden on essential grocery purchases for Arkansas residents.

Potential Impact Analysis

Who Might Benefit?

The primary beneficiaries are all Arkansas consumers, particularly low- to middle-income households who spend a larger percentage of their disposable income on food and food ingredients. By eliminating the excise tax on these essential items, individual taxpayers would experience a decrease in the cost of their daily grocery expenditures.

Who Might Suffer?

The primary entities negatively impacted would be state and local government agencies that rely on the revenue generated by the excise tax levied under Amendment 75. A reduction in tax collection could lead to budget shortfalls or necessitate funding cuts for the specific services, programs, or infrastructure projects that were originally intended to be supported by the revenue from this excise tax.

Read Full Bill on arkleg.state.ar.us