The bill amends Arkansas law to provide a state sales tax exemption for disabled veterans and certain household members. It introduces a new section, 26-52-455, which defines a "disabled veteran" as someone who qualifies for a property tax exemption under existing law. The bill specifies that gross receipts and gross proceeds from the sale of tangible personal property, specified digital products, digital codes, or services to a disabled veteran are exempt from the gross receipts tax. This exemption also extends to household members authorized to make purchases on behalf of the disabled veteran, but it does not apply to local sales and use taxes or the compensating use tax.

Additionally, the bill outlines the process for disabled veterans to qualify for the exemption, requiring them to submit a certification letter from the U.S. Department of Veterans Affairs. It establishes a maximum exemption amount of $25,000 per calendar year for eligible purchases and mandates that the Department of Finance and Administration issue exemption cards to qualifying individuals. The bill also includes various amendments to existing tax codes to clarify the applicability of local and municipal taxes concerning the new exemption for disabled veterans. The effective date for the provisions of this act is set for the first day of the calendar quarter following its enactment.

Statutes affected:
Old version HB1465 V2 - 3-7-2023 09:55 AM: 26-73-113(a), 26-74-212(a), 26-74-312(b), 26-75-214(b), 26-75-405(a), 26-75-502(a), 26-81-104(a), 26-82-102(9)
HB 1465: 26-73-113(a), 26-74-212(a), 26-74-312(b), 26-75-214(b), 26-75-405(a), 26-75-502(a), 26-81-104(a), 26-82-102(9)