This bill amends the sales and use tax laws in Arkansas to require that sales and use tax rebates be administered as refunds. It introduces a new section, 26-52-112, which mandates that refunds under the sales and use tax laws or the Arkansas Compensating Tax Act of 1949 be automatically provided to eligible taxpayers. The bill also modifies existing provisions regarding refunds for contractors purchasing tangible personal property for construction contracts, replacing the term "rebate" with "refund" in multiple sections, including 26-52-427 and 26-53-138. Additionally, it repeals certain provisions related to tax credits or rebates for machinery and equipment, streamlining the process for claiming refunds.

The bill further clarifies that interest will not accrue on amounts subject to refunds and empowers the Secretary of the Department of Finance and Administration to establish rules for administering these refunds. It also specifies that the new provisions will take effect on the first day of the calendar quarter following the bill's enactment. Overall, the legislation aims to simplify the process for taxpayers seeking refunds and ensure that they are automatically issued when due.

Statutes affected:
SB 316: 26-52-427, 26-52-447(f), 26-52-523(b), 26-53-138, 26-53-149(f)