The bill amends the Arkansas Code concerning the gross receipts tax by establishing a general sales and use tax exemption for sales made to qualified nonprofit organizations. A "qualified nonprofit organization" is defined as one that is recognized under 26 U.S.C. 501(c)(3) with an annual operating budget of less than $200,000 and that provides charitable community-based services to residents in need. The exemption applies to the sale of tangible personal property, specified digital products, digital codes, or services, provided that the items sold do not include certain exclusions such as motor vehicles, alcoholic beverages, and household appliances.

To obtain this exemption, nonprofit organizations must apply to the Secretary of the Department of Finance and Administration, who will issue an exemption certificate if the application is approved. The Secretary is also responsible for revoking the certificate if the organization no longer meets the qualifications. Additionally, the Secretary is required to report annually to the Legislative Council on the number of exemption certificates issued. The provisions of this act will take effect on the first day of the calendar quarter following its enactment.