TO CREATE A SALES AND USE TAX EXEMPTION FOR CERTAIN SALES TO A CULTIVATION FACILITY.

SB 419 creates sales and use tax exemptions for certain items sold to cultivation facilities in Arkansas. This bill directly affects these facilities by exempting them from taxes on purchases like seeds, new and used equipment, and utilities used exclusively for cultivating and producing usable marijuana. It also covers consumable materials, ingredients, chemicals, finished goods packaging, and devices for housing usable marijuana for medical use. The Secretary of the Department of Finance and Administration will establish rules for administering these exemptions, which include requirements for separate metering of utilities.