The bill amends the Arkansas Code concerning the levy of the gross receipts tax, specifically by providing a sales tax exemption for utility vegetation line management services. It introduces new legal language that specifies the gross receipts tax does not apply to vegetation line management services performed by mechanical or manual means in utility-related areas such as substations, distribution or transmission line easements, or rights-of-way. The bill defines "brush" and outlines what constitutes "vegetation line management services," which includes activities such as tree and brush trimming, clearing easements, debris removal, and chemical application.

Additionally, the bill establishes that the new provisions will take effect on the first day of the calendar quarter following its enactment. This legislative change aims to support utility companies by reducing their tax burden related to necessary vegetation management activities, thereby potentially enhancing service reliability and safety in utility operations.

Statutes affected:
HB 1804: 26-52-301(3)