This bill proposes the creation of a sales and use tax exemption specifically for certain sales to cultivation facilities in Arkansas. It introduces a new section to the Arkansas Code, defining key terms such as "cultivation facility," "finished goods packaging," "medical use," "qualifying patient," "usable marijuana," and "utility," all in accordance with definitions established in Arkansas Constitution, Amendment 98. The bill outlines the types of items that will be exempt from gross receipts and compensating use taxes when sold to a cultivation facility, including seeds for usable marijuana, equipment and machinery used exclusively for cultivation, utilities, consumable materials for marijuana production, finished goods packaging, and devices for housing usable marijuana.

Additionally, the bill specifies that utilities must be separately metered for the exemption to apply and allows the Secretary of the Department of Finance and Administration to require certification from utility sellers to confirm taxpayer eligibility for the exemption. The Secretary is also tasked with promulgating rules for the administration of this section. The effective date for this exemption is set for the first day of the calendar quarter following the act's approval.