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HB 1472

CRIM CD-COERCING AN ABORTION

104th Regular Session Introduced by Kelly Cassidy and 1 co-sponsor

HB 1472 aimed to exempt farmers and timber producers from sales tax on repair parts and services for equipment and grain bins, easing financial burdens significantly.

Added Co-Sponsor Rep. Kelly M. Cassidy
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Bill Summary · HB 1472

Summary of HB 1472

Bill Overview

Bill Number: HB 1472
Title: To Create a Sales and Use Tax Exemption for Parts Purchased to Repair Agricultural Equipment and Machinery and Timber Equipment and Machinery and Parts and Services Purchased to Repair a Grain Bin.
Status: Died in House Committee at Sine Die adjournment
Introduced: February 13, 2025
Effective Date: January 1, 2026 (if passed)

Purpose and Intent

HB 1472 aimed to provide a sales and use tax exemption for specific purchases related to the repair of agricultural and timber equipment, as well as grain bins. The bill sought to alleviate the financial burden on farmers and timber producers by exempting them from sales tax on necessary repair parts and services.

Key Provisions

  • Sales and Use Tax Exemption: The bill proposed exemptions for:

    1. Parts purchased to repair agricultural equipment and machinery.
    2. Parts purchased to repair timber equipment and machinery.
    3. Parts and services purchased to repair grain bins.

  • Definitions:

    • Agricultural Equipment and Machinery: Implements used exclusively and directly in commercial agricultural production.
    • Timber Equipment and Machinery: Implements used exclusively in the commercial production, harvesting, or processing of timber.

  • Fiscal Impact:

    • Estimated loss of state sales and use tax revenue:
    • FY2026: Approximately $9.5 million
    • FY2027: Approximately $23.5 million
    • Breakdown of revenue loss included impacts on various funds such as General Revenue, Property Tax Relief, and local city and county sales taxes.

Impact

  • Taxpayer Impact: Farmers and timber producers would no longer incur sales or use tax on parts and services necessary for the repair of their equipment and grain bins, potentially leading to significant cost savings.
  • Affected Parties: The bill would primarily benefit agricultural and timber industry stakeholders in Arkansas, including farmers, timber producers, and service providers involved in equipment repair.

Procedural Aspects

  • The bill was filed on February 13, 2025, and was referred to the House Committee on Revenue & Taxation.
  • It died in committee on May 5, 2025, at Sine Die adjournment, meaning it did not progress to a vote.

Additional Comments

  • The bill highlighted existing exemptions under Arkansas law for certain farm machinery but aimed to clarify and expand these exemptions to include repair parts, which were previously excluded.
  • An amendment was suggested to better define what constitutes a "grain bin" to ensure clarity in the exemption's application.

In summary, HB 1472 was designed to support the agricultural and timber sectors by reducing tax burdens associated with equipment repairs, although it ultimately did not advance through the legislative process.

Compiled from official sources — confirm details with the bill’s official record.

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