The 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. It includes new legislative findings that emphasize the original intent of the Arkansas Gross Receipts Act of 1941, which aimed to exempt sales in cafeterias primarily serving teachers and students and not operated for profit. The bill updates this exemption to align with current food service practices while maintaining the original legislative intent.

Additionally, the bill modifies Arkansas Code 26-52-401(3) by replacing the term "lunch rooms" with "dining facilities" and clarifies that cafeterias or dining facilities that contract with for-profit third parties for services are still considered non-profit for the purposes of this exemption. The effective date for these changes is set for the first day of the calendar quarter following the act's approval.

Statutes affected:
HB 1851: 26-52-401(3)
Act 714: 26-52-401(3)