TO INCLUDE TEXTBOOKS AND OTHER INSTRUCTIONAL MATERIALS THAT ARE LEASED IN THE EXEMPTION FROM THE GROSS RECEIPTS TAX.

SB 200 (now Act 329) expands Arkansas's sales tax exemption for public schools by including leased textbooks and instructional materials alongside purchased ones. It directly affects Arkansas public school districts, schools receiving state funding, and the state government when distributing materials. The key change modifies tax exemption rules to explicitly cover materials "leased" by qualifying schools or the state, removing a previous distinction that only applied to purchased items. This policy change reduces costs for schools using leased educational resources without altering existing exemptions for other items like extracurricular supplies. The bill became law on March 18, 2025.