Bill > HB1464

This bill creates a sales and use tax exemption for parts and repair services related to agricultural equipment and machinery in Arkansas. Specifically, the bill defines "agricultural equipment and machinery" as implements used exclusively and directly in farming, which includes irrigation pipes, aviation machinery, and implements used to harvest crops, but excludes timber production equipment, registered motor vehicles, and hand tools. The bill exempts from gross receipts and compensating use taxes the sale of parts used to modify, replace, or repair agricultural equipment and machinery, as well as services related to installation, alteration, cleaning, refinishing, replacement, or repair of such equipment. "Farming" is defined as the agricultural production of food, fiber, grass sod, or nursery products as a business. The tax exemption will become effective on the first day of the calendar quarter following the act's enactment, providing financial relief to farmers by reducing the cost of maintaining and repairing their essential farming equipment.

Budget and Finance

https://arkleg.state.ar.us/Bills/Detail?id=hb1464&ddBienniumSession=2025%2F2025R