Bill > HB1851

This bill amends Arkansas' sales tax exemption for food sold in school cafeterias to update and clarify existing regulations. The bill updates the language around tax exemptions for food sold in public, common, high school, and college cafeterias and dining facilities, specifically noting that such facilities can contract with for-profit third-party service providers without losing their tax-exempt status. The legislative findings indicate that this change is meant to align with current school food service practices while maintaining the original legislative intent from the 1941 Gross Receipts Act. The bill clarifies that these cafeterias and dining facilities must still be primarily operated for teachers and pupils, not for the general public, and not primarily for profit. Importantly, the bill specifies that if a school cafeteria uses a for-profit management service, it will not automatically be considered a for-profit operation and can still qualify for the sales tax exemption. The amendment will take effect on the first day of the calendar quarter following the bill's approval.

Budget and Finance

https://arkleg.state.ar.us/Bills/Detail?id=hb1851&ddBienniumSession=2025%2F2025R