HB1738
To Provide A Sales And Use Tax Exemption For Disabled Veterans.
Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
House Bill 1738 proposes a sales and use tax exemption for disabled veterans in Arkansas who qualify for property tax exemptions under existing state law. Under this bill, disabled veterans or their authorized household members may receive a tax exemption on the purchase of tangible personal property, specified digital products, digital codes, or services. The exemption is capped at $25,000 in total sales per year for each qualifying disabled veteran. To participate, veterans must obtain certification from the United States Department of Veterans Affairs and receive an exemption card from the Arkansas Department of Finance and Administration. The bill establishes that exceeding the $25,000 annual limit will result in the excess amount being treated as a direct sales tax liability, subject to collection, penalties, and interest. Additionally, the bill mandates that the Department of Finance and Administration create rules to implement the program and establishes a Class C misdemeanor penalty for fraudulent claims of the exemption.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are disabled veterans residing in Arkansas who already qualify for property tax exemptions, along with designated members of their households who are authorized to make purchases on their behalf. These individuals will benefit from reduced financial costs on essential goods, digital products, and services up to the annual $25,000 spending limit.
Who Might Suffer?
The primary entity negatively impacted is the State of Arkansas, which will experience a reduction in sales and use tax revenue. Additionally, the Arkansas Department of Finance and Administration will incur increased administrative costs and responsibilities associated with certifying applicants, issuing exemption cards, monitoring compliance with the $25,000 annual cap, and promulgating new rules to manage the exemption program.
Get Notified
Receive an email when this bill's status changes.