The 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. Additionally, the bill modifies existing provisions regarding contractors and their eligibility for refunds on taxes paid for tangible personal property used in construction contracts, replacing the term "rebate" with "refund" throughout the relevant sections.

Furthermore, the bill repeals certain provisions related to the credit or rebate on local sales and use tax, streamlining the process for taxpayers to claim refunds. It clarifies that no interest will accrue on amounts subject to refund claims and that the Secretary of the Department of Finance and Administration will establish rules for administering these refunds. The effective date for the changes outlined in the bill is set for the first day of the calendar quarter following its enactment.

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