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 A Bill
2 95th General Assembly
3 Regular Session, 2025 HOUSE BILL 1738
4
5 By: Representatives Crawford, Barnes, S. Berry, Breaux, John Carr, C. Cooper, Duffield, Ennett, D.
6 Garner, Gonzales Worthen, Gramlich, Hollowell, Hudson, L. Johnson, Lynch, McClure, McCullough, M.
7 McElroy, McGruder, Nazarenko, J. Richardson, Richmond, Rose, Rye, Steimel
8 By: Senators J. Boyd, A. Clark
9
10 For An Act To Be Entitled
11 AN ACT TO AMEND THE LAW CONCERNING BENEFITS PROVIDED
12 TO DISABLED VETERANS; TO PROVIDE A SALES AND USE TAX
13 EXEMPTION FOR DISABLED VETERANS AND CERTAIN HOUSEHOLD
14 MEMBERS OF DISABLED VETERANS; AND FOR OTHER PURPOSES.
15
16
17 Subtitle
18 TO PROVIDE A SALES AND USE TAX EXEMPTION
19 FOR DISABLED VETERANS.
20
21 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
22
23 SECTION 1. Arkansas Code Title 26, Chapter 52, Subchapter 4, is
24 amended to add an additional section to read as follows:
25 26-52-457. Disabled veterans -- Definition.
26 (a) As used in this section, "disabled veteran" means a person who
27 qualifies for a property tax exemption under � 26-3-306.
28 (b)(1) The gross receipts or gross proceeds from the sale of tangible
29 personal property, specified digital products, a digital code, or a service
30 to the following are exempt from the gross receipts tax levied by this
31 chapter and the compensating use tax levied by the Arkansas Compensating Tax
32 Act of 1949, � 26-53-101 et seq.:
33 (1) A disabled veteran; or
34 (2) A member of a disabled veteran's household who is authorized
35 to make purchases on behalf of and for the benefit of the disabled veteran in
36 the disabled veteran's absence.
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HB1738
1 (c) To qualify for the exemption under this section, a disabled
2 veteran shall submit to the Department of Finance and Administration a letter
3 from the United States Department of Veterans Affairs certifying that he or
4 she is a disabled veteran under � 26-3-306.
5 (d)(1) The maximum total amount of sales that qualify for an exemption
6 under this section is twenty-five thousand dollars ($25,000) per year for
7 each disabled veteran.
8 (2) The Department of Finance and Administration may request a
9 taxpayer claiming an exemption under this section to provide a statement
10 executed under oath that the total amount of sales subject to the exemption
11 provided under this section has not exceeded the limitation provided in
12 subdivision (d)(1) of this section.
13 (3) If a taxpayer claims an exemption under this section on a
14 sale that exceeds the limitation provided in subdivision (d)(1) of this
15 section, the amount claimed as exempt in excess of the limitation shall be
16 treated as a direct sales tax liability, and the Department of Finance and
17 Administration may recover the sales and use tax, including any applicable
18 penalties and interest, by the use of any method authorized by law.
19 (e) The Department of Finance and Administration shall issue an
20 exemption card to each disabled veteran who qualifies for an exemption card
21 under this section and each member of a disabled veteran's household who is
22 authorized to make purchases on behalf of and for the benefit of the disabled
23 veteran in the disabled veteran's absence.
24 (f) A person who claims an exemption under this section with a purpose
25 to defraud upon conviction is guilty of a Class C misdemeanor.
26 (g) The Department of Finance and Administration shall promulgate
27 rules to implement and administer this section.
28
29 SECTION 2. DO NOT CODIFY. EFFECTIVE DATE. Section 1 of this act is
30 effective on the first day of the calendar quarter following the effective
31 date of this act.
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2 03/11/2025 8:38:12 AM JLL292Every fact on this page links to its source, starting with the official bill record.