Bill > HB1319

This bill creates a state sales tax exemption for disabled veterans, their spouses, and surviving spouses who have not remarried. Under the new law, a "disabled veteran" is defined as a person who qualifies for a property tax exemption under a specific existing statute. To claim the exemption, disabled veterans must obtain an identification card from the Department of Veterans Affairs and present it at the time of purchase, while surviving spouses must submit a certification letter from the U.S. Department of Veterans Affairs. The exemption is limited to $5,000 per calendar year and only applies to sales made at physical locations within the state, not including local government sales taxes or use taxes. The bill requires the Department of Veterans Affairs and the Department of Finance and Administration to collaborate on issuing secure identification cards and managing the exemption. Sellers must use the serial number on the identification card when processing exempt transactions and report these numbers on their sales tax reports. The bill also amends multiple sections of Arkansas tax code to ensure the new exemption is properly integrated into existing tax regulations, and will take effect on the first day of the calendar quarter following its enactment.

Budget and Finance

https://arkleg.state.ar.us/Bills/Detail?id=hb1319&ddBienniumSession=2025%2F2025R