HB1388
To Exempt Certain Storage Services From Sales Tax; And To Exempt The Service Of Furnishing Accommodations By A Tourist Camp Or A Tourist Court From Sales Tax, As Affirmed By Referred Act 19 Of 1958.
AI-Generated Summary
This bill proposes amendments to Arkansas sales tax laws concerning specific services. Section 1 amends existing law regarding taxable accommodations, aiming to clarify or alter which providers and types of lodging are subject to sales tax. Specifically, it appears to create an exception for "tourist camps or tourist courts" from a general definition of taxable accommodations. Section 2 repeals two existing provisions that impose sales tax on boat storage and docking fees, as well as fees for camping and trailer spaces at campgrounds, with an exception for federal campgrounds when not on a month-to-month basis. The stated purpose of the bill is to exempt certain storage services and the service of furnishing accommodations by tourist camps or tourist courts from sales tax. The bill aims to achieve these exemptions by modifying existing statutes and repealing specific tax provisions. The effective date for these changes is set for the first day of the calendar quarter following the act's enactment. The bill is sponsored by Representative Vaught.
Potential Impact Analysis
Who Might Benefit?
If this bill becomes law, the primary beneficiaries would be providers of certain storage services, specifically those related to boats and docking, as well as operators of campgrounds and trailer parks (excluding federal ones) that charge for camping and trailer spaces on a less than month-to-month basis. Additionally, owners and operators of "tourist camps" and "tourist courts" would benefit from the exemption of their accommodation services from sales tax. Consumers who utilize these specific storage and lodging services would also indirectly benefit through potentially lower costs.
Who Might Suffer?
The primary entities that would be negatively impacted if this bill becomes law are the state government of Arkansas, specifically its revenue collection agencies. By exempting certain storage and lodging services from sales tax, the state would experience a reduction in tax revenue. This could potentially lead to decreased funding for public services or necessitate seeking revenue from other sources. Consumers who purchase taxable accommodations not covered by the exemptions might also be indirectly impacted if the state seeks to offset lost revenue through other tax increases.