Bill

Bill > HB1685


AR HB1685

AR HB1685
To Create The Grocery Tax Relief Act; To Amend The Law Concerning The Sales And Use Taxes Levied On Food And Food Ingredients, As Affirmed By Referred Act 19 Of 1958; And To Exempt Groceries From State Sales And Use Taxes.


summary

Introduced
03/05/2025
In Committee
04/15/2025
Crossed Over
04/07/2025
Passed
04/16/2025
Dead
Signed/Enacted/Adopted
04/22/2025

Introduced Session

95th General Assembly (2025 Regular)

Bill Summary

AN ACT TO CREATE THE GROCERY TAX RELIEF ACT; TO AMEND THE LAW CONCERNING THE SALES AND USE TAXES LEVIED ON FOOD AND FOOD INGREDIENTS, AS AFFIRMED BY REFERRED ACT 19 OF 1958; TO EXEMPT FOOD AND FOOD INGREDIENTS FROM STATE SALES AND USE TAXES; TO MAKE CONFORMING CHANGES TO ARKANSAS TAX LAW; AND FOR OTHER PURPOSES.

AI Summary

This bill proposes to create the Grocery Tax Relief Act, which aims to eliminate state sales and use taxes on food and food ingredients starting January 1, 2026. Specifically, the bill removes the existing 1.375% state tax on groceries and exempts food and food ingredients from the state's gross receipts and compensating use taxes. The term "food" and "food ingredients" is defined broadly, excluding only prepared foods like restaurant meals. While state taxes will be eliminated, the bill maintains that local municipal and county taxes on groceries can still be collected. The bill also makes several technical amendments to state tax codes, removing references to previous food tax provisions and adjusting how tax revenues are calculated and distributed. Importantly, the bill does not affect taxes on items like candy and soft drinks, which will continue to be taxed at standard rates. The legislation is designed to provide tax relief to Arkansas consumers by reducing the cost of groceries, with an effective date of January 1, 2026, giving state agencies time to adjust their systems and processes.

Committee Categories

Budget and Finance

Sponsors (41)

Bart Hester (R)* Kendon Underwood (R)* Brandon Achor (R),  Sonia Barker (R),  Howard Beaty (R),  Mary Bentley (R),  Harlan Breaux (R),  Keith Brooks (R),  Alyssa Brown (R),  Karilyn Brown (R),  Matt Brown (R),  Nick Burkes (R),  Rebecca Burkes (R),  John Carr (R),  Fran Cavenaugh (R),  Cindy Crawford (R),  Brian Evans (R),  Tony Furman (R),  Jimmy Gazaway (R),  Justin Gonzales (R),  Zack Gramlich (R),  R.J. Hawk (R),  Steve Hollowell (R),  Wayne Long (R),  Robin Lundstrum (R),  Mindy McAlindon (R),  Rick McClure (R),  Austin McCollum (R),  Mark McElroy (R),  Brit McKenzie (R),  Jeremiah Moore (R),  Stetson Painter (R),  Aaron Pilkington (R),  David Ray (R),  Jay Richardson (D),  Scott Richardson (R),  Ryan Rose (R),  Johnny Rye (R),  Randy Torres (R),  DeAnn Vaught (R),  Jeremy Wooldridge (R), 

Last Action

Notification that HB1685 is now Act 1008 (on 04/22/2025)

bill text


bill summary

Loading...

bill summary

Loading...
Loading...