This bill proposes the creation of a sales and use tax exemption specifically for parts and repair services related to agricultural equipment and machinery in Arkansas. It introduces a new section to the Arkansas Code, defining "agricultural equipment and machinery" as implements used exclusively in farming, which includes items such as irrigation pipes and aviation machinery, while explicitly excluding items like motor vehicles and hand tools. The bill also defines "farming" as the agricultural production of food, fiber, grass sod, or nursery products as a business.

Under the new provisions, the gross receipts from the sale of parts for modifying, replacing, or repairing agricultural equipment and machinery, as well as related services, will be exempt from the gross receipts tax and the compensating use tax. The bill stipulates that this exemption will take effect on the first day of the calendar quarter following its enactment.