HB1485
To Create A Sales And Use Tax Exemption For Sales To Certain Organizations That Support Veterans' Facilities.
AI-Generated Summary
This bill proposes to create a sales and use tax exemption in Arkansas. The exemption would apply to sales of tangible personal property, specified digital products, digital codes, or services made to certain organizations. These organizations include the Arkansas Veterans Cemetery Foundation. Additionally, the exemption would cover sales to any organization that is recognized as a 501(c)(3) nonprofit, is registered as a nonprofit with the Secretary of State, and is established to support veterans' cemeteries, veterans' homes, or facilities operated by the Department of Veterans Affairs within the state. The purpose of this exemption is to support entities that contribute to the well-being of veterans. The amendment to existing law is set to take effect on the first day of the calendar quarter following the bill's enactment. This legislation aims to reduce the financial burden on these specific veteran-supporting organizations.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be the Arkansas Veterans Cemetery Foundation and other qualifying nonprofit organizations that are dedicated to supporting veterans' cemeteries, veterans' homes, or facilities administered by the Department of Veterans Affairs in Arkansas. These organizations would benefit from reduced costs on purchases of tangible personal property, specified digital products, digital codes, and services, as they would no longer be subject to sales and use tax on these transactions. This financial relief could allow these organizations to allocate more resources directly towards their missions of supporting veterans.
Who Might Suffer?
The entities that would be most directly negatively impacted by this bill are the state and local governments of Arkansas, as they would experience a reduction in sales and use tax revenue. This revenue loss would occur because sales made to the exempted organizations would no longer be taxed. The extent of this negative impact would depend on the volume of purchases made by these organizations and the amount of sales tax that would have otherwise been collected. This reduction in tax revenue could potentially affect the funding available for various state and local public services.