HB1671

House Bill 1671 creates a sales and use tax exemption for qualified nonprofit organizations in Arkansas. To qualify, an organization must be a 501(c)(3) entity with an annual operating budget of less than $200,000 that performs charitable community-based services. The exemption applies to tangible personal property, specified digital products, digital codes, or services, but excludes specific items such as motor vehicles, aircraft, alcohol, tobacco, computers, construction materials, appliances, mobile phones, ATVs, and televisions. Organizations must apply to the Secretary of the Department of Finance and Administration for an exemption certificate. The Secretary has the authority to issue, deny, or revoke these certificates based on eligibility requirements. Additionally, the Secretary is required to report annually to the Legislative Council on the number of certificates issued.