This bill amends Arkansas law to provide a sales and use tax exemption specifically for disabled veterans and certain household members of disabled veterans. It introduces a new section, 26-52-457, which defines a "disabled veteran" as someone who qualifies for a property tax exemption under existing law. The bill stipulates that the gross receipts from the sale of tangible personal property, specified digital products, digital codes, or services to disabled veterans or authorized household members will be exempt from the gross receipts tax and compensating use tax. To qualify for this exemption, disabled veterans must submit a certification letter from the United States Department of Veterans Affairs.

Additionally, the bill sets a cap of $25,000 per year on the total amount of sales that can qualify for the exemption for each disabled veteran. It also outlines the process for the Department of Finance and Administration to issue exemption cards to eligible veterans and their household members. Furthermore, it includes provisions for penalties in cases of fraudulent claims and mandates the Department to create rules for the implementation of this exemption. The effective date of this act is set for the first day of the calendar quarter following its enactment.