This bill amends Arkansas law to provide a sales tax exemption for disabled veterans, their spouses, and surviving spouses who have not remarried. It introduces a new section, 26-52-457, which defines a "disabled veteran" as someone eligible for a property tax exemption under existing law. The exemption applies to gross receipts from the sale of tangible personal property, specified digital products, and services, but only for sales made at physical locations within the state. The bill outlines the process for claiming the exemption, including the requirement for disabled veterans to obtain an identification card from the Department of Veterans Affairs and for surviving spouses to provide certification of their status.

Additionally, the bill makes several amendments to existing tax codes to clarify that local sales and use taxes will also apply to items and services exempt under the new section 26-52-457. It specifies that the maximum exemption amount a taxpayer can claim in a calendar year is $5,000 and establishes penalties for fraudulent claims. The bill also mandates collaboration between the Department of Veterans Affairs and the Department of Finance and Administration to implement the new identification card system and manage the exemption process. The effective date for the provisions of this act is set for the first day of the calendar quarter following its enactment.

Statutes affected:
HB 1319: 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)