HB1250
To Create A Sales Tax Holiday For Disaster-preparedness Supplies To Encourage Disaster-preparedness.
AI-Generated Summary
This bill proposes the creation of a sales tax holiday in Arkansas for disaster-preparedness supplies. The holiday would be observed annually for a period of two days, starting on the first Saturday in November and ending on the following Sunday. During this designated period, certain specified items would be exempt from state sales and use taxes. The bill defines various categories of disaster-preparedness supplies, including fastening supplies, food-related items, general supplies, and safety supplies. Examples of included items range from batteries and water storage containers to fire extinguishers and storm shutters. The purpose of this initiative is to encourage citizens to prepare for potential disasters by making essential supplies more affordable. The Department of Finance and Administration would be responsible for promulgating rules to implement this new section of law. The provisions of the act would become effective on the first day of the calendar quarter following its enactment.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be Arkansas residents who purchase disaster-preparedness supplies during the designated sales tax holiday. This includes individuals seeking to equip their homes and families with items necessary for safety and survival in the event of emergencies such as storms, floods, or other calamities. Retailers selling these types of supplies could also see an increase in sales volume during the tax-free period. Government entities focused on emergency management might benefit indirectly through increased public preparedness levels.
Who Might Suffer?
The primary entities negatively impacted by this bill would be the state and local governments of Arkansas, which would experience a reduction in sales and use tax revenue during the two-day sales tax holiday. This loss of revenue could potentially affect funding for public services. Retailers may also experience a slight shift in purchasing patterns, with consumers potentially delaying purchases of these items until the holiday period, though this impact is likely to be offset by increased sales volume during that specific timeframe. The Department of Finance and Administration would incur administrative costs associated with developing and implementing the necessary rules and regulations for the tax holiday.