This bill amends the Arkansas Compensating Tax Act of 1949 by updating the definitions of manufacturing and processing specifically for the use-tax exemption related to machinery and equipment used in the retreading of tires. The new language clarifies that retreading of tires is included as a manufacturing process, aligning its definition with that used for sales-tax exemptions. Additionally, the bill introduces a new category for producing protective coatings that enhance the quality and durability of finished products.

The amendments involve the deletion of previous language that grouped retreading of tires with rebuilding or remanufacturing of used parts, and instead, it explicitly states retreading as a standalone process. The effective date for these changes is set for the first day of the second calendar month following the act's approval.

Statutes affected:
SB 252: 26-53-114(b)
Act 351: 26-53-114(b)