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 a disabled veteran or an authorized household member are 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 includes provisions for the Department of Finance and Administration to request statements from taxpayers claiming the exemption and outlines penalties for fraudulent claims. The Department is also tasked with issuing exemption cards to qualifying disabled veterans and their authorized household members, and it will establish rules for the implementation and administration of this new exemption. The effective date for this act is set for the first day of the calendar quarter following its enactment.