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Committee approves bill to shield small retailers from penalties over candy, soft‑drink sales tax
Summary
The Revenue & Tax committee passed House Bill 1005, which would codify a practice that protects retailers who make a good‑faith effort to comply with Arkansas’ grocery sales tax treatment of candy and soft drinks; the Department of Finance and Administration told lawmakers it cannot compile a UPC list of taxed items.
House Bill 1005, sponsored by Representative Davis, cleared the Senate Revenue & Tax committee after a short debate when members voted in favor of moving the measure forward.
The bill moves language now placed as special‑session appropriation into statute and requires the Department of Finance and Administration (DFA) to either produce a list of items that qualify as "candy" or to refrain from penalizing retailers who make a good‑faith effort to classify items for grocery sales tax purposes. Representative Davis said…
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