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 that 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 "vegetation line management services" to include various activities such as tree and brush trimming or removal, easement clearing, debris disposal, and chemical application for vegetation control.

Additionally, the bill outlines specific definitions related to the services provided, including what constitutes "brush" and the various methods of vegetation management. The effective date for this exemption is set for the first day of the calendar quarter following the act's approval. This legislative change aims to support utility companies in managing vegetation around their infrastructure without the burden of additional taxation.

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