SB274
To Create A Sales And Use Tax Exemption For Certain Items Related To Human Burial; And To Exempt A Portion Of The Purchase Price Of A Casket, Burial Vault, Or Monument From Sales And Use Tax.
Last Action (May 5, 2025): Died in Senate Committee at Sine Die adjournment.
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AI-Generated Summary
Senate Bill 274 proposes a sales and use tax exemption for specific items associated with human burial in Arkansas. Under the bill, the first $1,000 of the gross receipts or proceeds from the sale of a casket, burial vault, or monument would be exempt from state sales and compensating use taxes. The bill provides that this exemption may be administered as a rebate to the purchaser. The effective date for these changes is set for the first day of the calendar quarter following the effective date of the act.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are individuals or families purchasing funeral-related items such as caskets, burial vaults, and monuments, as they would see a reduction in the total cost of these items due to the tax exemption. Funeral homes and monument retailers may also benefit indirectly from increased customer affordability or simplified tax processing if the rebate mechanism is streamlined.
Who Might Suffer?
The primary entity negatively impacted by this bill is the State of Arkansas and its local governments, which would experience a reduction in sales and use tax revenue. To the extent that these tax revenues fund public services, a broad decline in tax collections could necessitate future budget adjustments.
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