StrickenHall languageof wouldthe beHouse deletedof fromRepresentatives and93rd underlinedGeneral languageAssembly would- beRegular addedSession, to2021 presentAmendment law.Form ______________________________________________________________________ Subtitle of House Bill No.

State1596 ofTO ArkansasALLOW AsTHE Engrossed:SALES AND USE TAX EXEMPTION FOR SALES FOR RESALE TO APPLY TO ITEMS SOLD FOR USE IN PRINTING;

H4/15/21 93rd General Assembly A Bill Regular Session, 2021 HOUSE BILL 1596 5 By:

Representatives Jett, Speaks By:

Senator J.

Dismang 8 For An Act To Be Entitled AN ACT TO AMEND THE SALES TAX EXEMPTIONS THAT APPLY TO CERTAIN ARTICLES;

TO ALLOW THE SALES AND USE TAX EXEMPTION FOR SALES FOR RESALE TO APPLY TO ITEMS SOLD FOR USE IN PRINTING;

TO AMEND THE SALES AND USE TAX EXEMPTION FOR CERTAIN MACHINERY AND EQUIPMENT;

AND FOR OTHER PURPOSES.

Subtitle TO ALLOW THE SALES AND USE TAX EXEMPTION FOR SALES FOR RESALE TO APPLY TO ITEMS SOLD FOR USE IN PRINTING;

BE______________________________________________________________________ ITAmendment ENACTEDNo. BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

SECTION1 1.to House Bill 1596 Amend House Bill No.

Arkansas1596 Code § 26-52-401(12)(B)(i), concerning the sales tax exemption for items sold for resale, is amended to read as follows:originally introduced:

(B)(i)Add Goods,Representative wares,Speaks merchandise,as anda propertycosponsor soldof forthe usebill inAND manufacturing,Page printing,2, compounding,line processing,4, assembling,delete or"an preparingitem" forAND salePage can2, beline classified5, asdelete having"To" beenand soldsubstitute for"An theitem purposesto" ofAND resalePage or2, theline subject6, matterdelete of"That" resaleand onlysubstitute in"A theprinted eventitem thethat" goods,AND wares,Page merchandise,2, orline property8, becomesdelete a"That" recognizableand integralsubstitute part"An ofitem thethat" manufactured,*.JLL249* printed,The compounded,Amendment processed,was assembled,read or________________________________________________________________________________ preparedBy: products.

*JLL176*Representative 04-15-2021Jett 10:25:47JLL/JLL JLL176- As04-05-2021 Engrossed:11:02:28 _________________________ JLL249 Chief Clerk

H4/15/21 HB1596 SECTION 2.

Arkansas Code § 26-52-402(b), concerning the sales tax exemption for certain machinery and equipment, is amended to read as follows:

(b) As used in this section, “manufacturing”:

(1) “Articles of commerce” means:

(A) An item to be placed on the market for retail sale;

(B) A printed item that is produced for a specific customer in response to a special order;

or (C) An item that becomes a recognizable integral part of an item described in subdivision (b)(1)(A) or subdivision (b)(1)(B) of this section;

and (2) “Manufacturing” or “processing” refers to and includes those operations commonly understood within their ordinary meaning and shall also include:

(1)(A) Mining;

(2)(B) Quarrying;

(3)(C) Refining;

(4)(D) Extracting oil and gas;

(5)(E) Cotton ginning;

(6)(F) Drying of rice, soybeans, and other grains;

(7)(G) Manufacturing of feed;

(8)(H) Processing of poultry or eggs and livestock and the hatching of poultry;

(9)(I) Printing of all kinds, types, and characters, including the services of overprinting and photographic processing incidental to printing;

(10)(J) Processing of scrap metal into grades and bales for further processing into steel and other metals;

(11)(K) Retreading of tires for automobiles, trucks, and other mobile equipment powered by electrical or internal combustion engines or motors;

(12)(L) Rebuilding or remanufacturing of used parts for automobiles, trucks, and other mobile equipment powered by electrical or internal combustion engines or motors if the rebuilt or remanufactured parts are not sold directly to the consumer but are sold for resale;

and (13)(M) Producing of protective coatings which increase the quality and durability of a finished product.

04-15-2021 10:25:47 JLL176 As Engrossed:

H4/15/21 HB1596 2 SECTION 3.

Arkansas Code § 26-52-402(c)(1)(B), concerning the sales tax exemption for certain machinery and equipment, is amended to read as follows:

(B) As used in this subsection, “directly” is used to limit the exemption to only the machinery and equipment used in actual production during processing, fabricating, or assembling raw materials or semifinished materials into the form in which the personal property is to be sold in the commercial market.