SB338
To Provide Sales And Use Tax Exemptions For Student Farmers; And To Provide Sales And Use Tax Exemptions For Certain Products And Services To Be Used In Relation To A Project For A Youth Farming Program.
Last Action (May 5, 2025): Died in Senate Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
Senate Bill 338 proposes tax exemptions on gross receipts and compensating use taxes for individuals identified as 'student farmers.' A student farmer is defined as a person under age 23 enrolled in an approved youth farming program, such as FFA, 4-H, or a similar state-recognized agricultural education program. The bill exempts various agricultural inputs from taxation, including feed, seeds, plants, fertilizer, livestock/poultry medicine, and specific farm equipment owned by the student. Additionally, it provides exemptions for the lease or rental of personal property used in a project and for certain lodging expenses incurred by students and their advisors while traveling for livestock shows or competitions. To access these benefits, individuals must submit a signed statement of eligibility to the Arkansas Department of Finance and Administration to receive an exemption certificate. The bill aims to reduce the financial burden on youth participating in agricultural projects.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are youth under the age of 23 who are actively enrolled in agricultural programs such as the Arkansas Division of the Future Farmers of America (FFA), Arkansas 4-H, or similar school-supervised agriculture projects. Additionally, agricultural educators, advisors, and club leaders involved in these programs benefit from travel-related lodging exemptions during competitive events.
Who Might Suffer?
The primary group negatively impacted is the State of Arkansas, which would experience a reduction in sales and use tax revenue. While the fiscal impact may be relatively small in the context of the state budget, any reduction in tax collection limits the funding available for state services and programs that rely on tax receipts.
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