This bill proposes the creation of a sales and use tax exemption specifically for certain sales made to cultivation facilities in Arkansas. It introduces a new section to the Arkansas Code, defining key terms such as "cultivation facility," "finished goods packaging," "medical use," "qualifying patient," "usable marijuana," and "utility." The bill outlines the types of items that will be exempt from gross receipts and compensating use taxes when sold to a cultivation facility, including seeds for marijuana cultivation, equipment and machinery used exclusively for this purpose, utilities, consumable materials for marijuana production, finished goods packaging, and devices for housing usable marijuana.

Additionally, the bill stipulates that utilities must be separately metered for the exemption to apply and allows the Secretary of the Department of Finance and Administration to require certification from utility sellers to confirm taxpayer eligibility for the exemption. The bill also mandates the promulgation of rules for its proper administration and specifies that it will take effect on the first day of the calendar quarter following its enactment.