This bill proposes the creation of a sales and use tax exemption specifically for certain sales made 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 of which are aligned with definitions found in Arkansas Constitution, Amendment 98. The bill outlines the types of items that will be exempt from gross receipts and compensating use taxes, including seeds for usable marijuana cultivation, equipment and machinery used exclusively for this purpose, utilities used in the operation of cultivation facilities, consumable materials for marijuana production, finished goods packaging, and devices for housing usable marijuana.

Additionally, the bill specifies that utilities must be separately metered to qualify for the exemption 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 the provisions of this act is set for the first day of the calendar quarter following its enactment.