This bill amends the sales tax exemption for food, food ingredients, and prepared food sold in public, common, high school, or college cafeterias and dining facilities. The General Assembly finds that the original exemption, established under the Arkansas Gross Receipts Act of 1941, was intended for cafeterias primarily serving teachers and students without profit motives. The bill aims to update this exemption to align with current school food service practices while maintaining the original legislative intent.

Key changes include the replacement of the term "lunch rooms" with "dining facilities" in the legal language, and the clarification that a cafeteria or dining facility contracting with a for-profit third party for services is not automatically considered to be operated for profit. Additionally, the bill specifies that the updated exemption will take effect on the first day of the calendar quarter following its enactment.

Statutes affected:
HB 1851: 26-52-401(3)