This bill proposes the creation of a sales and use tax exemption for certain tangible personal property related to agriculture, specifically targeting working horses and fencing used in commercial agricultural production. It introduces a new section to the Arkansas Code, defining "commercial agricultural production" as the business operation of producing crops, livestock, or animal products. The bill specifies that a "working horse" is a horse primarily used as a work animal in this context, explicitly excluding race horses, show horses, and those used mainly for breeding.

The bill outlines that the gross receipts from the sale of working horses and fencing used to contain or separate livestock in commercial agricultural operations will be exempt from the gross receipts tax and the compensating use tax. Additionally, it establishes that the effective date for this exemption will be the first day of the calendar quarter following the act's effective date.