The bill amends Arkansas Code 26-52-437 to expand the exemption from the gross receipts tax to include textbooks and other instructional materials that are leased, in addition to those that are purchased. Specifically, it modifies the definition of "instructional materials" to clarify that items leased for use in interscholastic extracurricular activities or for school administration and maintenance are not included in the exemption.

Furthermore, the bill stipulates that textbooks, library books, and other instructional materials will be exempt from the gross receipts tax if they are purchased or leased by public school districts or public schools in Arkansas that receive state funding, as well as by the State of Arkansas for free distribution to these schools. This change aims to support educational institutions by reducing the financial burden associated with acquiring necessary instructional resources.

Statutes affected:
SB 200: 26-52-437(a), 26-52-437(b)