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HB 1828

TO CREATE A SALES AND USE TAX EXEMPTION FOR INSPIRATION POINT CENTER FOR THE ARTS, INC.

2025 Regular Session Introduced by Harlan Breaux and 1 co-sponsor

HB 1828 sought to exempt Inspiration Point Center for the Arts from sales tax, boosting its financial health and ability to provide community arts services.

Died in Senate Committee at Sine Die adjournment.
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Bill Summary · HB 1828

Summary of HB 1828: Sales and Use Tax Exemption for Inspiration Point Center for the Arts, Inc.

Bill Overview

Bill Number: HB 1828
Title: To Create a Sales and Use Tax Exemption for Inspiration Point Center for the Arts, Inc.
Status: Died in Senate Committee at Sine Die adjournment
Introduced: March 18, 2025
Sponsors: Representative Breaux and Senator Bryant

Purpose and Intent

The primary purpose of HB 1828 was to establish a sales and use tax exemption specifically for the Inspiration Point Center for the Arts, Inc. This exemption aimed to alleviate the financial burden of sales tax on the center’s purchases, thereby supporting its operations and activities related to the arts.

Key Provisions

  • Sales and Use Tax Exemption: The bill proposed an amendment to Arkansas Code § 26-52-401 to include a new subdivision that would exempt gross receipts or gross proceeds from sales of:

    • Tangible personal property
    • Specified digital products
    • Digital codes
    • Services provided to Inspiration Point Center for the Arts, Inc.

  • Effective Date: The exemption would take effect on the first day of the calendar quarter following the act's effective date, which was anticipated to be October 1, 2025.

Fiscal Impact

The fiscal impact of the bill was estimated as follows:

FY2026

  • Total Approximate State Sales and Use Tax Loss: $5,160
    • General Revenue: $4,620
    • Property Tax Relief: $385
    • Conservation Fund: $96
    • Educational Adequacy Fund: $674
    • Highway Fund: $397

FY2027

  • Total Approximate State Sales and Use Tax Loss: $7,972
    • General Revenue: $4,820
    • Property Tax Relief: $595
    • Conservation Fund: $149
    • Educational Adequacy Fund: $1,041
    • Highway Fund: $613

Local Impact

  • Total Approximate Local City and County Sales and Use Tax Loss: $4,048 for FY2027.

Affected Parties

The primary beneficiary of this bill would have been the Inspiration Point Center for the Arts, Inc., which would no longer be required to pay sales and use tax on eligible purchases. This could potentially enhance its financial sustainability and capacity to provide arts-related services to the community.

Procedural Aspects

  • The bill was read multiple times in the House and passed before being transmitted to the Senate.
  • It was reviewed by the Senate Committee on Revenue & Taxation but ultimately died in committee at Sine Die adjournment on May 5, 2025.

Conclusion

While HB 1828 aimed to provide significant financial relief to the Inspiration Point Center for the Arts, the bill did not progress past the Senate Committee stage. The proposed tax exemption would have had implications for state and local tax revenues, as well as for the operational capacity of the arts center.

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

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