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Panel clears bill fixing sales-tax language on digital magazines and clarifying car wash exemptions
Summary
HB 10-33 removes obsolete references to digital magazines in the sales-tax code and clarifies that sales of car washes by operators (tunnel, automatic, self-service) and affiliated ancillary services are exempt; committee passed the bill as amended.
Sponsor presented House Bill 10-33, which removes outdated references to digital magazines from Arkansas sales-tax statutes and clarifies that sales of car washes by car-wash operators (automatic tunnel, self-service bays) are exempt from sales and use tax. The bill adds a definition for self-service bays and was described as a cleanup item stemming from drafting gaps in Act 822 of 2019.
Senator Dussmann asked whether this bill conflicts with a pending bill from Senator Stubblefield; Lauren Ballard of DFA revenue legal said the bills are compatible — Stubblefield's measure would eliminate the car wash water-usage fee, whereas HB 10-33 corrects statutory language and definitions. Senator Ingram asked whether ancillary services (manual spraying or hand-drying) provided alongside a tunnel wash would remain exempt; Ballard said ancillary services tied to an exempt tunnel wash are also exempt under Act 822.
The committee adopted the amendment adding a cosponsor and passed HB 10-33 as amended by voice vote.
