HB1472
To Create A Sales And Use Tax Exemption For Parts Purchased To Repair Agricultural Equipment And Machinery And Timber Equipment And Machinery And Parts And Services Purchased To Repair A Grain Bin.
Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
House Bill 1472 proposes to create new sales and use tax exemptions for specific items related to the agriculture and timber industries in Arkansas. The bill exempts the purchase of parts used to repair existing agricultural and timber equipment and machinery. Furthermore, it provides a sales and use tax exemption for both parts and services utilized in the repair of grain bins. To qualify for the machinery exemptions, the equipment must be used exclusively and directly in commercial agricultural production or the commercial production, harvesting, or processing of timber. The act is scheduled to take effect on January 1, 2026.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill are commercial farmers, timber producers, and agricultural operations in Arkansas. These entities will benefit through reduced operational costs when maintaining and repairing essential machinery and infrastructure like grain bins. Additionally, service providers and parts suppliers who cater to the agricultural and timber sectors may see an increase in demand for their goods and services due to the lower cost burden on their customers.
Who Might Suffer?
The primary entity negatively impacted by this bill is the State of Arkansas, which will experience a reduction in sales and use tax revenue. By creating these exemptions, the state legislature is narrowing the tax base, which could result in a decrease in the funds available for the state budget and public services. Local governments that rely on a portion of these sales tax revenues may also see a decrease in their anticipated collections.
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