Bill > HB1871

This bill creates a sales and use tax exemption for parts and repair services related to agricultural equipment and machinery in Arkansas. The bill defines "agricultural equipment and machinery" to include implements used exclusively and directly in farming, such as irrigation pipes, aviation machinery, and crop harvesting equipment, but excludes timber production equipment, motor vehicles, and hand tools. The exemption applies to the gross receipts tax and the compensating use tax for the purchase of parts to modify, replace, or repair agricultural equipment and machinery, as well as for services related to the installation, alteration, replacement, or repair of such equipment and machinery. The effective date of this tax exemption is set to the first day of the calendar quarter following the effective date of the bill.