Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas As Engrossed: H3/17/25 H4/1/25 S4/8/25 S4/9/25
2 95th General Assembly A Bill
3 Regular Session, 2025 HOUSE BILL 1685
4
5 By: Representatives Underwood, McCollum, Ray, Achor, Barker, Beaty Jr., Bentley, Breaux, Brooks, A.
6 Brown, K. Brown, M. Brown, N. Burkes, R. Burkes, John Carr, Cavenaugh, Crawford, Evans, Furman,
7 Gazaway, Gonzales, Gramlich, Hawk, Hollowell, Long, Lundstrum, McAlindon, McClure, M. McElroy,
8 B. McKenzie, J. Moore, Painter, Pilkington, J. Richardson, R. Scott Richardson, Rose, Rye, Torres,
9 Vaught, Wooldridge
10 By: Senator Hester
11
12 For An Act To Be Entitled
13 AN ACT TO CREATE THE GROCERY TAX RELIEF ACT; TO AMEND
14 THE LAW CONCERNING THE SALES AND USE TAXES LEVIED ON
15 FOOD AND FOOD INGREDIENTS, AS AFFIRMED BY REFERRED
16 ACT 19 OF 1958; TO EXEMPT FOOD AND FOOD INGREDIENTS
17 FROM STATE SALES AND USE TAXES; TO MAKE CONFORMING
18 CHANGES TO ARKANSAS TAX LAW; AND FOR OTHER PURPOSES.
19
20
21 Subtitle
22 TO CREATE THE GROCERY TAX RELIEF ACT; TO
23 AMEND THE LAW CONCERNING THE SALES AND
24 USE TAXES LEVIED ON FOOD AND FOOD
25 INGREDIENTS, AS AFFIRMED BY REFERRED ACT
26 19 OF 1958; AND TO EXEMPT GROCERIES FROM
27 STATE SALES AND USE TAXES.
28
29 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
30
31 SECTION 1. DO NOT CODIFY. Title.
32 This act shall be known and may be cited as the "Grocery Tax Relief
33 Act".
34
35 SECTION 2. DO NOT CODIFY. Legislative intent.
36 The General Assembly intends:
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1 (1) To exempt the gross receipts or gross proceeds derived from
2 the sale of food and food ingredients from state taxes; and
3 (2) For the gross receipts and gross proceeds derived from the
4 sale of food and food ingredients to continue to be subject to taxes levied
5 by municipalities and counties under the Arkansas Gross Receipts Act of 1941,
6 � 26-52-101 et seq., and the Arkansas Compensating Tax Act of 1949, � 26-53-
7 101 et seq.
8
9 SECTION 3. Arkansas Code � 19-5-1103(b), concerning the Property Tax
10 Relief Trust Fund, is amended to read as follows:
11 (b) The fund shall consist of such revenues as generated by �� 26-52-
12 302(c), 26-52-317(c)(1)(B), 26-52-319(a)(2)(B), 26-53-107(c), 26-53-
13 145(c)(1)(B), 26-53-148(a)(2)(B), and 26-56-224(c)(2) and shall be used for
14 such purposes as set out in � 26-26-310.
15
16 SECTION 4. Arkansas Code � 19-5-1227(b)(3), concerning the Educational
17 Adequacy Fund, is amended to read as follows:
18 (3) The revenues generated by � 26-52-302(d), � 26-52-316,
19 � 26-52-317(c)(1)(C), � 26-52-319(a)(2)(C), � 26-53-107(d), � 26-53-
20 145(c)(1)(C), � 26-53-148(a)(2)(C), � 26-56-224(c)(3), and � 26-57-
21 1002(d)(1)(A)(ii); and
22
23 SECTION 5. Arkansas Code � 19-6-201(58), concerning the enumeration of
24 general revenues, is repealed.
25 (58) Seventy-six and six-tenths percent (76.6%) of all taxes,
26 interest, penalties, and costs on taxes levied on the gross receipts or gross
27 proceeds derived from the sale of food and food ingredients, � 26-52-
28 317(c)(1)(A);
29
30 SECTION 6. Arkansas Code � 19-6-201(60), concerning the enumeration of
31 general revenues, is repealed.
32 (60) Seventy-six and six-tenths percent (76.6%) of the taxes,
33 interest, penalties, and costs received on taxes levied on the privilege of
34 storing, using, distributing, or using food and food ingredients, � 26-53-
35 145(c)(1)(A);
36
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1 SECTION 7. The introductory language of Arkansas Code � 26-52-301,
2 concerning the sales tax levied on the sale of certain products and services,
3 is amended to read as follows:
4 Except for food and food ingredients that are taxed under � 26-52-317
5 and except for used motor vehicles, trailers, and semitrailers that are taxed
6 under � 26-52-324, there is levied an excise tax of three percent (3%) upon
7 the gross proceeds or gross receipts derived from all sales to any person of
8 the following:
9
10 SECTION 8. Arkansas Code � 26-52-302 is amended to read as follows:
11 26-52-302. Additional taxes levied.
12 (a)(1) In addition to the excise tax levied upon the gross proceeds or
13 gross receipts derived from all sales by this chapter, except for food and
14 food ingredients that are taxed under � 26-52-317 and except for used motor
15 vehicles, trailers, and semitrailers that are taxed under � 26-52-324, there
16 is levied an excise tax of one percent (1%) upon all taxable sales of
17 property, specified digital products, digital codes, and services subject to
18 the tax levied in this chapter.
19 (2) This tax shall be collected, reported, and paid in the same
20 manner and at the same time as is prescribed by law for the collection,
21 reporting, and payment of all other Arkansas gross receipts taxes.
22 (3) In computing gross receipts or gross proceeds as defined in
23 � 26-52-103, a deduction shall be allowed for bad debts resulting from the
24 sale of tangible personal property.
25 (b)(1) In addition to the excise tax levied upon the gross proceeds or
26 gross receipts derived from all sales by this chapter, except for food and
27 food ingredients that are taxed under � 26-52-317 and except for used motor
28 vehicles, trailers, and semitrailers that are taxed under � 26-52-324, there
29 is hereby levied an excise tax of one-half of one percent (0.5%) upon all
30 taxable sales of property, specified digital products, digital codes, and
31 services subject to the tax levied in this chapter.
32 (2) This tax shall be collected, reported, and paid in the same
33 manner and at the same time as is prescribed by law for the collection,
34 reporting, and payment of all other Arkansas gross receipts taxes.
35 (3) However, in computing gross receipts or gross proceeds as
36 defined in � 26-52-103, a deduction shall be allowed for bad debts resulting
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1 from the sale of tangible personal property.
2 (c)(1) Except for food and food ingredients that are taxed under � 26-
3 52-317 and except for used motor vehicles, trailers, and semitrailers that
4 are taxed under � 26-52-324, there is levied an additional excise tax of one-
5 half of one percent (0.5%) upon all taxable sales of property, specified
6 digital products, digital codes, and services subject to the tax levied by
7 this chapter.
8 (2) The tax shall be collected, reported, and paid in the same
9 manner and at the same time as is prescribed by this chapter, for the
10 collection, reporting, and payment of Arkansas gross receipts taxes.
11 (d)(1) Except for food and food ingredients that are taxed under � 26-
12 52-317 and except for used motor vehicles, trailers, and semitrailers that
13 are taxed under � 26-52-324, there is levied an additional excise tax of
14 seven-eighths of one percent (0.875%) upon all taxable sales of property,
15 specified digital products, digital codes, and services subject to the tax
16 levied by this chapter.
17 (2) The tax shall be collected, reported, and paid in the same
18 manner and at the same time as prescribed by this chapter, for the
19 collection, reporting, and payment of Arkansas gross receipts taxes.
20
21 SECTION 9. Arkansas Code � 26-52-317 is amended to read as follows:
22 26-52-317. Food and food ingredients.
23 (a)(1) The Secretary of the Department of Finance and Administration
24 shall determine the following conditions:
25 (A) That federal law authorizes the state to collect sales
26 and use tax from some or all of the sellers that have no physical presence in
27 the State of Arkansas and that make sales of taxable goods and services to
28 Arkansas purchasers;
29 (B) That initiating the collection of sales and use tax
30 from these sellers would increase the net available general revenues needed
31 to fund state agencies, services, and programs; and
32 (C)(i) That during a six-month consecutive period, the
33 amount of net available general revenues attributable to the collection of
34 sales and use tax from sellers that have no physical presence in the State of
35 Arkansas is equal to or greater than one hundred fifty percent (150%) of
36 sales and use tax collected under subsection (c) of this section and � 26-53-
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1 145 on food and food ingredients.
2 (ii) The secretary shall make the determination
3 under subdivision (a)(1)(C)(i) of this section on a monthly basis following
4 the determination that the conditions under subdivision (a)(1)(A) of this
5 section have been met.
6 (2)(A) The secretary shall make a monthly determination as to
7 whether the aggregate amount of deductions from net general revenues
8 attributable to the following during the most recently ended six-month
9 consecutive period, as compared with the same six-month period in the prior
10 year, has declined by thirty-five million dollars ($35,000,000) or more:
11 (i) The Educational Adequacy Fund;
12 (ii) Bonds issued under the Arkansas College Savings
13 Bond Act of 1989, � 6-62-701 et seq.;
14 (iii) Bonds issued under the Arkansas Higher
15 Education Technology and Facility Improvement Act of 2005, � 6-62-1101 et
16 seq.;
17 (iv) The City-County Tourist Facilities Aid Fund;
18 and
19 (v) Bonds issued under the Arkansas Water, Waste
20 Disposal and Pollution Abatement Facilities Financing Act of 1997 and the
21 Arkansas Water, Waste Disposal, and Pollution Abatement Facilities Financing
22 Act of 2007, � 15-20-1301 et seq.
23 (B)(i) In making the determination in this subdivision
24 (a)(2), the secretary shall consider all economic factors existing at the
25 time of the determination that could potentially affect the decline in the
26 aggregate amount of deductions, including without limitation pending
27 litigation.
28 (ii) If the consideration of additional economic
29 factors under subdivision (a)(2)(B)(i) of this section results in a
30 determination that the decline in the aggregate amount of deductions is not
31 likely to remain at that reduced level, the secretary shall conclude that the
32 conditions in this subdivision (a)(2) have not been met.
33 (3) When the secretary finds that all of the conditions in
34 either subdivision (a)(1) or subdivision (a)(2) of this section have been
35 met, then the gross receipts or gross proceeds taxes levied under subsection
36 (c) of this section shall be levied at the rate of zero percent (0%) on the
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1 sale of food and food ingredients beginning on the first day of the calendar
2 quarter that is at least thirty (30) days following the determination of the
3 secretary.
4 (b) As used in this section:
5 (1) "Food" and "food ingredients" mean the same as defined in �
6 26-52-103 except that "food" and "food ingredients" do not include prepared
7 food; and
8 (2) "Prepared food" means the same as defined in � 26-52-103
9 except that "prepared food" does not include:
10 (A) Food that is only cut, repackaged, or pasteurized by
11 the seller; or
12 (B) Eggs, fish, meat, and poultry, and foods containing
13 these raw animal foods requiring cooking by the consumer to prevent food-
14 borne illnesses as recommended by the United States Food and Drug
15 Administration in its 2005 Food Code, � 3-401.11, as it existed on January 1,
16 2007.
17 (b) For the purposes of the Local Government Bond Act of 1985, � 14-
18 164-301 et seq., � 26-52-303, �� 26-52-606 -- 26-52-607, �� 26-73-110 -- 26-73-
19 113, � 26-74-201 et seq., � 26-74-301 et seq., � 26-74-401 et seq., � 26-74-
20 601 et seq., � 26-75-201 et seq., � 26-75-301 et seq., � 26-75-401 et seq., �
21 26-75-501 et seq., the Multicounty Airport and Riverport Financing Act, � 26-
22 81-101 et seq., and the Local Sales and Use Tax Economic Development Project
23 Funding Act, � 26-82-101 et seq., food and food ingredients are subject to
24 taxation under this chapter. (c)(1) Beginning July 1, 2011, in lieu of the
25 gross receipts or gross proceeds taxes levied on food and food ingredients
26 under �� 26-52-301 and 26-52-302, there is levied a tax on the gross receipts
27 or gross proceeds derived from the sale of food and food ingredients at the
28 rate of one and three-eighths percent (1.375%), to be distributed as follows:
29 (A) Seventy-six and six-tenths percent (76.6%) of the
30 taxes, interest, penalties, and costs received by the secretary under this
31 subdivision (c)(1) shall be deposited as general revenues;
32 (B) Eight and five-tenths percent (8.5%) of the taxes,
33 interest, penalties, and costs received by the secretary under this
34 subdivision (c)(1) shall be deposited into the Property Tax Relief Trust
35 Fund; and
36 (C) Fourteen and nine-tenths percent (14.9%) of the taxes,
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1 interest, penalties, and costs received by the secretary under this
2 subdivision (c)(1) shall be deposited into the Educational Adequacy Fund.
3 (2) The gross receipts or gross proceeds taxes levied under
4 subdivision (c)(1) of this section shall be collected, reported, and paid in
5 the same manner and at the same time as is prescribed by law for the
6 collection, reporting, and payment of all other Arkansas gross receipts
7 taxes.
8 (d) The gross receipts or gross proceeds derived from the sale of food
9 and food ingredients shall continue to be subject to the:
10 (1) Excise tax levied under Arkansas Constitution, Amendment 75,
11 � 2; and
12 (2) All municipal and county gross receipts taxes.
13 (e) The Department of Finance and Administration shall promulgate
14 rules to implement the provisions of this section.
15
16 SECTION 10. Arkansas Code � 26-52-323 is amended to read as follows:
17 26-52-323. Application of tax to candy and soft drinks.
18 The Secretary of the Department of Finance and Administration shall
19 either:
20 (1)(A) Publish a list of the Universal Product Codes for items
21 that meet the definition of:
22 (i) A candy under � 26-52-103 or � 26-53-102; or
23 (ii) A soft drink under � 26-52-103 or � 26-53-102.
24 (B) The list published by the secretary under subdivision
25 (1)(A) of this section shall provide guidance to retailers, sellers, and
26 vendors regarding which items are defined as a candy or a soft drink but not
27 defined as food and food ingredients under the Arkansas Gross Receipts Act of
28 1941, � 26-52-101 et seq., or the Arkansas Compensating Tax Act of 1949, �
29 26-53-101 et seq.
30 (C) The list published by the secretary under subdivision
31 (1)(A) of this section is exempt from the Arkansas Administrative Procedure
32 Act, � 25-15-201 et seq.; or
33 (2) Not subject a retailer, seller, or vendor to the penalties
34 under � 26-18-201, � 26-18-202, � 26-18-208, � 26-18-209, � 26-52-512, or �
35 26-53-125 if the retailer, seller, or vendor:
36 (A) Collects and remits Does not collect or remit tax
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1 payments to the Department of Finance and Administration on the gross
2 receipts and gross proceeds derived from the sale of items that meet the
3 definition of:
4 (i) A candy under � 26-52-103 or � 26-53-102 at the
5 taxable rate for food and food ingredients under � 26-52-317 or � 26-53-145;
6 or
7 (ii) A soft drink under � 26-52-103 or � 26-53-102 at
8 the taxable rate for food and food ingredients under � 26-52-317 or � 26-53-
9 145; and
10 (B) Demonstrates a good faith effort to collect and remit
11 tax payments to the department on the gross receipts and gross proceeds
12 derived from the sale of items that meet the definition of:
13 (i) A candy under � 26-52-103 or � 26-53-102 at the
14 taxable rate under � 26-52-301, � 26-52-302, � 26-53-106, or � 26-53-107; or
15 (ii) A soft drink under � 26-52-103 or � 26-53-102 at
16 the taxable rate under � 26-52-301, � 26-52-302, � 26-53-106, or � 26-53-107.
17
18 SECTION 11. Arkansas Code Title 26, Chapter 52, Subchapter 4, is
19 amended to add an additional section to read as follows:
20 26-52-457. Food and food ingredients.
21 (a) As used in this section:
22 (1) "Food" and "food ingredients" mean the same as defined in �
23 26-52-103 except that "food" and "food ingredients" do not include prepared
24 food; and
25 (2) "Prepared food" means the same as defined in � 26-52-103
26 except that "prepared food" does not include:
27 (A) Food that is only cut, repackaged, or pasteurized by
28 the seller; or
29 (B) Eggs, fish, meat, and poultry, and foods containing
30 these raw animal foods requiring cooking by the consumer to prevent food-
31 borne illnesses as recommended by the United States Food and Drug
32 Administration in its 2005 Food Code, � 3-401.11, as it existed on January 1,
33 2007.
34 (b) Except as provided in �� 26-52-317 and 26-53-145, the gross
35 receipts or gross proceeds derived from the sale of food and food ingredients
36 are exempt from the gross receipts tax levied by this chapter and the
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1 compensating use tax levied by the Arkansas Compensating Tax Act of 1949, �
2 26-53-101 et seq.
3
4 SECTION 12. Arkansas Code � 26-53-106(a), concerning the imposition
5 and rate of the compensating use tax, is amended to read as follows:
6 (a) There is levied and there shall be collected from every person in
7 this state a tax or excise for the privilege of storing, using, distributing,
8 or consuming within this state tangible personal property, specified digital
9 products, a digital code, or a taxable service purchased for storage, use,
10 distribution, or consumption in this state at the rate of three percent (3%)
11 of the sales price of the tangible personal property, specified digital
12 products, digital code, or taxable service except for food and food
13 ingredients that are taxed under � 26-53-145 and except for used motor
14 vehicles, trailers, and semitrailers that are taxed under � 26-53-150.
15
16 SECTION 13. Arkansas Code � 26-53-107 is amended to read as follows:
17 26-53-107. Additional taxes levied.
18 (a)(1) In addition to the excise tax levied upon the privilege of
19 storing, using, distributing, or consuming tangible personal property,
20 specified digital products, a digital code, and taxable services within this
21 state by this subchapter, there is levied an excise tax of one percent (1%)
22 upon all tangible personal property, specified digital products, digital
23 codes, and taxable services subject to the tax levied in this subchapter
24 except for food and food ingredients that are taxed under � 26-53-145 and
25 except for used motor vehicles, trailers, and semitrailers that are taxed
26 under � 26-53-150.
27 (2) The tax shall be collected, reported, and paid in the same
28 manner and at the same time as is prescribed by law for the collection,
29 reporting, and payment of state compensating taxes.
30 (b)(1) In addition to the excise tax levied upon the privilege of
31 storing, using, distributing, or consuming tangible personal property,
32 specified digital products, a digital code, and taxable services within the
33 state by this subchapter, there is levied an excise tax of one-half of one
34 percent (0.5%) upon all tangible personal property, specified digital
35 products, digital codes, and taxable services subject to the tax levied in
36 this subchapter except for food and food ingredients that are taxed under �
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1 26-53-145 and except for used motor vehicles, trailers, and semitrailers that
2 are taxed under � 26-53-150.
3 (2) The tax shall be collected, reported, and paid in the same
4 manner and at the same time as is prescribed by law for the collection,
5 reporting, and payment of Arkansas compensating taxes.
6 (c)(1) There is levied an additional excise tax of one-half of one
7 percent (0.5%) upon all tangible personal property, specified digital
8 products, digital codes, and taxable services subject to the tax levied by
9 this subchapter except for food and food ingredients that are taxed under �
10 26-53-145 and except for used motor vehicles, trailers, and semitrailers that
11 are taxed under � 26-53-150.
12 (2) The tax shall be collected, reported, and paid in the same
13 manner and at the same time as is prescribed by this subchapter for the
14 collection, reporting, and payment of Arkansas compensating taxes.
15 (d)(1) There is levied an additional excise tax of seven-eighths of
16 one percent (0.875%) upon all tangible personal property, specified digital
17 products, digital codes, and taxable services subject to the tax levied by
18 this subchapter except for food and food ingredients that are taxed under �
19 26-53-145 and except for used motor vehicles, trailers, and semitrailers that
20 are taxed under � 26-53-150.
21 (2) The tax shall be collected, reported, and paid in the same
22 manner and at the same time as is prescribed by this subchapter for the
23 collection, reporting, and payment of Arkansas compensating taxes.
24
25 SECTION 14. Arkansas Code � 26-53-145 is amended to read as follows:
26 26-53-145. Food and food ingredients.
27 (a)(1) The Secretary of the Department of Finance and Administration
28 shall determine the following conditions:
29 (A) That federal law authorizes the state to collect sales
30 and use tax from some or all of the sellers that have no physical presence in
31 the State of Arkansas and that make sales of taxable goods and services to
32 Arkansas purchasers;
33 (B) That initiating the collection of sales and use tax
34 from these sellers would increase the net available general revenues needed
35 to fund state agencies, services, and programs; and
36 (C)(i) That during a six-month consecutive period, the
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1 amount of net available general revenues attributable to the collection of
2 sales and use tax from sellers that have no physical presence in the State of
3 Arkansas is equal to or greater than one hundred fifty percent (150%) of
4 sales and use tax collected under subsection (c) of this section and � 26-52-
5 317 on food and food ingredients.
6 (ii) The secretary shall make the determination
7 under subdivision (a)(1)(C)(i) of this section on a monthly basis following
8 the determination that the conditions under subdivision (a)(1)(A) of this
9 section have been met.
10 (2)(A) Beginning July 1, 2013, the secretary shall make a
11 monthly determination as to whether the aggregate amount of deductions from
12 net general revenues attributable to the following during the most recently
13 ended six-month consecutive period, as compared with the same six-month
14 period in the prior year, has declined by thirty-five million dollars
15 ($35,000,000) or more:
16 (i) The Educational Adequacy Fund;
17 (ii) Bonds issued under the Arkansas College Savings
18 Bond Act of 1989, � 6-62-701 et seq.;
19 (iii) Bonds issued under the Arkansas Higher
20 Education Technology and Facility Improvement Act of 2005, � 6-62-1101 et
21 seq.;
22 (iv) The City-County Tourist Facilities Aid Fund;
23 and
24 (v) Bonds issued under the Arkansas Water, Waste
25 Disposal and Pollution Abatement Facilities Financing Act of 1997 and the
26 Arkansas Water, Waste Disposal, and Pollution Abatement Facilities Financing
27 Act of 2007, � 15-20-1301 et seq.
28 (B)(i) In making the determination in this subdivision
29 (a)(2), the secretary shall consider all economic factors existing at the
30 time of the determination that could potentially affect the decline in the
31 aggregate amount of deductions, including without limitation pending
32 litigation.
33 (ii) If the consideration of additional economic
34 factors under subdivision (a)(2)(B)(i) of this section results in a
35 determination that the decline in the aggregate amount of deductions is not
36 likely to remain at that reduced level, the secretary shall conclude that the
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1 conditions in this subdivision (a)(2) have not been met.
2 (3) When the secretary finds that all of the conditions in
3 either subdivision (a)(1) or subdivision (a)(2) of this section have been
4 met, then the compensating use taxes levied under subsection (c) of this
5 section shall be levied at the rate of zero percent (0%) on the sale of food
6 and food ingredients beginning on the first day of the calendar quarter that
7 is at least thirty (30) days following the determination of the secretary.
8 (b) As used in this section:
9 (1) "Food" and "food ingredients" mean the same as defined in � 26-53-102
10 except that "food" and "food ingredients" do not include prepared food; and
11 (2) "Prepared food" means the same as defined in � 26-53-102
12 except that "prepared food" does not include:
13 (A) Food that is only cut, repackaged, or pasteurized by
14 the seller; or
15 (B) Eggs, fish, meat, and poultry, and foods containing
16 these raw animal foods requiring cooking by the consumer to prevent food-
17 borne illnesses as recommended by the United States Food and Drug
18 Administration in its 2005 Food Code, � 3-401.11, as it existed on January 1,
19 2007.
20 (b) For the purposes of the Local Government Bond Act of 1985, � 14-
21 164-301 et seq., � 26-52-303, �� 26-52-606 -- 26-52-607, �� 26-73-110 -- 26-73-
22 113, � 26-74-201 et seq., � 26-74-301 et seq., � 26-74-401 et seq., � 26-74-
23 601 et seq., � 26-75-201 et seq., � 26-75-301 et seq., � 26-75-401 et seq., �
24 26-75-501 et seq., the Multicounty Airport and Riverport Financing Act, � 26-
25 81-101 et seq., and the Local Sales and Use Tax Economic Development Project
26 Funding Act, � 26-82-101 et seq., food and food ingredients are subject to
27 taxation under this chapter. (c)(1) Beginning July 1, 2011, in lieu of the
28 compensating use taxes levied on food and food ingredients under �� 26-53-106
29 and 26-53-107, there is levied a tax on the privilege of storing, using,
30 distributing, or consuming food and food ingredients at the rate of one and
31 three-eighths percent (1.375%) to be distributed as follows:
32 (A) Seventy-six and six-tenths percent (76.6%) of the
33 taxes, interest, penalties, and costs received by the secretary under this
34 subdivision (c)(1) shall be deposited as general revenues;
35 (B) Eight and five-tenths percent (8.5%) of the taxes,
36 interest, penalties, and costs received by the secretary under this
12 04-09-2025 18:11:44 JLL150
As Engrossed: H3/17/25 H4/1/25 S4/8/25 S4/9/25 HB1685
1 subdivision (c)(1) shall be deposited into the Property Tax Relief Trust
2 Fund; and
3 (C) Fourteen and nine-tenths percent (14.9%) of the taxes,
4 interest, penalties, and costs received by the secretary under this
5 subdivision (c)(1) shall be deposited into the Educational Adequacy Fund.
6 (2) The use tax levied under subdivision (c)(1) of this section
7 shall be collected, reported, and paid in the same manner and at the same
8 time as is prescribed by law for the collection, reporting, and payment of
9 all other Arkansas compensating use taxes.
10 (d) The following shall continue to apply to the sales price of food
11 and food ingredients:
12 (1) The compensating use tax levied under Arkansas Constitution,
13 Amendment 75, � 2; and
14 (2) All municipal and county use taxes.
15 (e) The Department of Finance and Administration shall promulgate
16 rules to implement the provisions of this section.
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18 SECTION 15. EFFECTIVE DATE. Sections 1-14 of this act are effective
19 on and after January 1, 2026.
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13 04-09-2025 18:11:44 JLL150Every fact on this page links to its source, starting with the official bill record.