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HB 1388

TO EXEMPT CERTAIN STORAGE SERVICES FROM SALES TAX; AND TO EXEMPT THE SERVICE OF FURNISHING ACCOMMODATIONS BY A TOURIST CAMP OR A TOURIST COURT FROM SALES TAX, AS AFFIRMED BY REFERRED ACT 19 OF 1958.

2025 Regular Session Introduced by DeAnn Vaught

HB 1388 aimed to exempt sales tax on tourist accommodations and boat storage, reducing costs for consumers and boosting tourism in Arkansas, but it died in committee.

Died in House Committee at Sine Die adjournment.
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WeVote Research Nonpartisan
Bill Summary · HB 1388

Summary of House Bill 1388

Bill Overview

  • Bill Number: HB 1388
  • Title: To Exempt Certain Storage Services from Sales Tax; and to Exempt the Service of Furnishing Accommodations by a Tourist Camp or a Tourist Court from Sales Tax, as Affirmed by Referred Act 19 of 1958.
  • Status: Died in House Committee at Sine Die adjournment.
  • Introduced: February 04, 2025

Purpose and Intent

House Bill 1388 aimed to amend the Arkansas sales tax code by exempting specific services related to accommodations and storage from sales tax. The intent was to reduce the tax burden on consumers utilizing these services, thereby potentially encouraging tourism and recreational activities within the state.

Key Provisions

The bill proposed the following significant changes to the Arkansas sales tax regulations:

  1. Exemptions from Sales Tax:

    • Accommodations:
      • The service of furnishing accommodations by:
      • Tourist camps
      • Tourist courts
      • Public or privately owned campgrounds (for camping or trailer spaces rented on a less than month-to-month basis, excluding federal campgrounds)
    • Storage Services:
      • Boat storage and docking fees would also be exempt from sales tax.

  2. Amendments to Existing Law:

    • The bill sought to remove certain services from the list of taxable services under the Arkansas Gross Receipts Act of 1941.

  3. Effective Date:

    • The proposed changes were set to take effect on October 1, 2025, allowing for an eight-month period for implementation.

Fiscal Impact

The fiscal impact of HB 1388 was projected as follows:

  • FY2026 Estimated Loss:

    • Total State Sales and Use Tax Loss: -$2,808,325
    • Breakdown:
    • General Revenue: -$1,885,898
    • Local City and County Sales and Use Tax Loss: -$1,425,765

  • FY2027 Estimated Loss:

    • Total State Sales and Use Tax Loss: -$4,338,862
    • Breakdown:
    • General Revenue: -$2,623,473
    • Local City and County Sales and Use Tax Loss: -$2,202,807

Impact on Taxpayers

If enacted, taxpayers would benefit from the elimination of sales tax on:
- Stays at tourist camps and courts
- Boat storage and docking fees
- Rentals of camping or trailer spaces at applicable campgrounds

Procedural Aspects

  • The bill was introduced and underwent various legislative actions, including amendments and readings in the House.
  • It ultimately died in the House Committee on May 5, 2025, without further progress.

Conclusion

House Bill 1388 represented an effort to alleviate the sales tax burden on specific services that support tourism and recreational activities in Arkansas. Although it did not advance through the legislative process, the proposed exemptions highlighted ongoing discussions regarding tax policy and its impact on local economies.

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

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