Committee hears bills to expand disability tax credit and to exempt veterans‑support nonprofits from sales/use tax

Representative Julie Mayberry introduced House Bill 1540 and described a proposal to replace the state’s existing tax deduction for caregivers of people with developmental disabilities with a tax credit and to align the state definition with the federal definition of "developmental disability." Mayberry said the current deduction(s) date to 1977 and 1991 and remain at $500; using an inflation calculator, she noted that $500 in 1977 is worth about $2,727 in today’s dollars. Mayberry said the bill would eliminate the older deduction form, create a single, updated certificate tied to the federal definition and raise the benefit (the bill text under discussion would increase the amount to $1,000; fiscal estimates in committee noted a possible $10 million fiscal impact at that level).

Advocacy group testimony: Katie Sursa of Achieve Community Alliance (formerly United Cerebral Palsy) testified about barriers clients face when trying to qualify for a discounted Game and Fish disability license. Sursa said documentation currently required by Game and Fish (for example, Social Security award letters) frequently does not reflect clients’ circumstances — for instance, many clients remain on parental guardianship or receive Medicaid but not a Social Security award letter — and that relying on a federal developmental‑disability definition would better capture eligible Arkansans. Sursa said the group runs an annual fishing derby and currently purchases short‑term licenses for participants because they cannot reliably obtain the discounted licenses under current documentation rules. "We currently serve over 300 clients statewide... every single 1 of them should qualify for a developmental disability license" but documentation requirements prevent that, she said.

Representative Carolyn Brown presented a separate measure to exempt sales and use tax for 501(c)(3) organizations that exclusively support Arkansas veterans facilities associated with the Arkansas Department of Veterans Affairs. Brown said the constituency for such exemptions includes groups that place flags and wreaths and support cemetery operations; she estimated one organization spent about $3,000 in sales tax last year.

Procedure: Both measures were heard for discussion; the committee did not take votes on either bill at this session and members noted the items had fiscal impacts or administrative questions that would require follow-up. Mayberry said she was willing to adjust the proposed credit amount if fiscal analysis suggests a lower figure is necessary.