Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas
2 93rd General Assembly A Bill
3 Regular Session, 2021 HOUSE BILL 1253
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5 By: Representative Penzo
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7 For An Act To Be Entitled
8 AN ACT TO CREATE A SALES AND USE TAX EXEMPTION FOR
9 CONSTRUCTION MATERIALS USED BY THE ARKANSAS
10 DEPARTMENT OF TRANSPORTATION IN PUBLIC CONSTRUCTION
11 PROJECTS; TO DECLARE AN EMERGENCY; AND FOR OTHER
12 PURPOSES.
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15 Subtitle
16 TO CREATE A SALES AND USE TAX EXEMPTION
17 FOR CONSTRUCTION MATERIALS USED BY THE
18 ARKANSAS DEPARTMENT OF TRANSPORTATION IN
19 PUBLIC CONSTRUCTION PROJECTS; AND TO
20 DECLARE AN EMERGENCY.
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23 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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25 SECTION 1. Arkansas Code Title 26, Chapter 52, Subchapter 4, is
26 amended to add an additional section to read as follows:
27 26-52-453. Construction materials for public construction projects.
28 (a) As used in this section:
29 (1)(A) Eligible construction material means tangible personal
30 property used directly as part of a public construction project, including
31 without limitation construction materials and consumables that are used in a
32 public construction project that will remain part of the completed public
33 construction project or are consumed in the construction process.
34 (B) "Eligible construction material" does not include
35 construction equipment and tools, motor vehicle fuel, and other tangible
36 personal property that may be used for purposes of a public construction
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 HB1253
1 project that do not remain part of the public construction project or are not
2 consumed during the construction process;
3 (2)(A) Public construction project means a construction
4 project initiated by the Arkansas Department of Transportation and paid for
5 with public funds.
6 (B) Public construction project includes only the
7 portion of the construction project that is paid for with public funds; and
8 (3) Public funds means funds or guarantees from the state, a
9 political subdivision of the state, or the United States Government.
10 (b) The gross receipts or gross proceeds derived from the sale of an
11 eligible construction material are exempt from the gross receipts tax levied
12 under this chapter and the compensating use tax levied under the Arkansas
13 Compensating Tax Act of 1949, 26-53-101 et seq.
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15 SECTION 2. EMERGENCY CLAUSE. It is found and determined by the
16 General Assembly of the State of Arkansas that the highways, roads, streets,
17 and bridges of this state are in dire need of construction, reconstruction,
18 and maintenance; that well-maintained roadways are necessary for economic
19 development in this state; and that exempting certain purchases of the
20 Arkansas Department of Transportation from sales and use taxes will enable
21 the department to dedicate more funds toward constructing, reconstructing,
22 and maintaining the roadways in the state. Therefore, an emergency is
23 declared to exist, and this act being necessary for the preservation of the
24 public peace, health, and safety shall become effective on July 1, 2021.
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