An act TO INCLUDE TEXTBOOKS AND OTHER INSTRUCTIONAL 10 MATERIALS THAT ARE LEASED IN THE EXEMPTION FROM THE 11 GROSS RECEIPTS TAX, the official text

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                                             SENATE BILL 200

4

5 By: Senator K. Hammer

6 By: Representative Hawk

7

8                              For An Act To Be Entitled

9               AN ACT TO INCLUDE TEXTBOOKS AND OTHER INSTRUCTIONAL

10              MATERIALS THAT ARE LEASED IN THE EXEMPTION FROM THE

11              GROSS RECEIPTS TAX; AND FOR OTHER PURPOSES.

12

13

14                             Subtitle

15                       TO INCLUDE TEXTBOOKS AND OTHER

16                       INSTRUCTIONAL MATERIALS THAT ARE LEASED

17                       IN THE EXEMPTION FROM THE GROSS RECEIPTS

18                       TAX.

19

20 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

21

22  SECTION 1. Arkansas Code � 26-52-437(a)(2), concerning the definition

23 of "instructional materials" as it relates to the exemption of textbooks and

24 other instructional materials from the gross receipts tax, is amended to read

25 as follows:

26              (2) "Instructional materials" does not include:

27                       (A) Items purchased or leased for use in:

28                             (i) Interscholastic extracurricular activities; or

29                             (ii) Administration or maintenance of a school; or

30                       (B) Construction materials or supplies.

31

32  SECTION 2. Arkansas Code � 26-52-437(b), concerning the conditions

33 under which textbooks and other instructional materials are exempt from the

34 gross receipts tax, is amended to read as follows:

35  (b) Textbooks, library books, and other instructional materials shall

36 be exempt from the gross receipts tax levied by this chapter if purchased or

    *TNL045*                                                 02/05/2025 1:50:02 PM TNL045
                                                                           SB200

1 leased by:

2             (1) An Arkansas public school district or Arkansas public school

3 that receives state funding; or

4             (2) The State of Arkansas for free distribution to Arkansas

5 public school districts or Arkansas public schools.

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

                                   2                   02/05/2025 1:50:02 PM TNL045