Starting January 1, 2026, Arkansas will no longer charge a state sales tax on groceries, giving families some relief on a basic, everyday expense. Conduit has long referred to the grocery tax as a “misery tax.” While the state repeal is a step forward, local grocery taxes still apply, and we believe groceries should be fully exempt from these taxes.
The grocery tax repeal is just one of several new laws taking effect January 1, including updates to tax credits, business incentives, and health coverage.
Here is a full list of new laws starting January 1:
ACT 16 (HB1046) establishes a Blue Envelope Program to ease communication between an individual with autism spectrum disorder and law enforcement during a motor vehicle-related interaction and directs the Department of Finance and Administration to develop and make available a specially designed blue envelope to hold essential documents.
ACT 371 (HB1661) eliminates the obligation of cities and counties to pay for the salaries of state district court judges and allows cities and counties to retain fifty percent (50%) of uniform court costs and filing fees collected in the district court.
ACT 881 (HB1922) allows an entity to use the investment tax credit allowed under the Consolidated Incentive Act of 2003 to offset its income tax or sales tax liability, changes the amount of the investment tax credit that the Arkansas Economic Development Commission may offer, repeals the tax incentives offered for technology-based enterprises, and creates an income tax credit for businesses that relocate their corporate headquarters to Arkansas.
ACT 907 (HB1766) requires an institution of higher education to adopt a policy addressing documentation considered in evaluating whether a student is a student with a disability and to disseminate information regarding the policy to certain individuals and at certain times.
ACT 814 (HB1739) adopts the Uniform Electronic Legal Materials Act.
ACT 866 (HB1826) mandates coverage for the delivery of a newborn in a licensed birthing center under a health benefit plan on and after January 1, 2026.
ACT 962 (HB1943) requires a basic quality rating system for each risk-based provider organization that is accessible online, requires a risk-based provider organization to provide access to provider network directories for its enrollees, and requires the Department of Human Services to have a dedicated beneficiary support system related to risk-based provider organizations.
ACT 875 (HB1063) increases the disability onset age to forty-six (46) years of age for purposes of the Achieving a Better Life Experience Program.
ACT 350 (HB1620) regulates the processing and payment of pharmacy claims, amends the Arkansas Pharmacy Audit Bill of Rights to exclude the Arkansas Medicaid Program and provide definitions, amends the Arkansas Pharmacy Benefits Manager Licensure Act to provide definitions, establishes procedures for the processing and payment of pharmacy claims, and sets penalties for pharmaceutical manufacturers for violations of clean claim payments by the pharmaceutical manufacturer’s vendor or intermediary.
ACT 348 (HB1583) mandates coverage for medically necessary treatment related to or resulting from an acquired brain injury beginning on and after January 1, 2026, and clarifies that the coverage is not subject to certain limitations or to a greater deductible, coinsurance, copayment, or out-of-pocket limit than any other benefit provided by a healthcare insurer under a health benefit plan.
ACT 424 (SB83) mandates coverage for all modalities, types, and techniques of a healthcare service provided for breast reconstruction surgeries that are determined to be the best course of treatment by a healthcare professional, consistent with prevailing medical standards, and in consultation with the patient under a health benefit plan on and after January 1, 2026.
ACT 627 (HB1333) mandates coverage for breastfeeding and lactation consultant services in an outpatient setting under a health benefit plan on and after January 1, 2026, and provides that the coverage is not subject to an annual deductible, copayment, or coinsurance limit and does not diminish or limit benefits otherwise allowable under a health benefit plan
ACT 860 (HB1079) mandates coverage for genetic testing for an inherited gene mutation under a health benefit plan on and after January 1, 2026, for an individual with a personal or family history of cancer in certain circumstances.
ACT 390 (HB1316) mandates coverage for lung cancer screenings and follow-up healthcare services under a health benefit plan on and after January 1, 2026.
ACT 628 (HB1424) mandates coverage for the treatment of diseases and conditions caused by severe obesity under a health benefit plan on and after January 1, 2026, and establishes requirements for a covered person to qualify for coverage. The act limits coverage to an individual who is at least eighteen (18) years of age and has completed a preoperative period of no more than three (3) months of counseling and education.
ACT 142 (HB1353) regulates vision benefit managers and the manner in which an insurer, vision benefit manager, vision care plan, or vision care discount plan identifies participating vision care providers and regulates the advertising of an insurer, vision benefit manager, vision care plan, or vision care discount plan.
ACT 427 (SB366) creates the Strengthen Arkansas Homes Program Fund and establishes the Strengthen Arkansas Homes Program within the State Insurance Department to provide financial grants to real property owners and nonprofit organizations to assist with and promote the mitigation of losses to insurable dwellings due to catastrophic wind events.
ACT 958 (SB519) amends the standard nonforfeiture law for life insurance to regulate the payment of interest on deferred payment of any cash surrender value on and after January 1, 2026, according to the terms of the policy if payment is not made within a certain time period and requires the policy death benefit to remain in full force and effect until payment is made.
ACT 1008 (HB1685) creates the Grocery Tax Relief Act, exempts food and food ingredients from state sales and use taxes, and provides that the sale of food and food ingredients continues to be subject to local sales and use taxes.
ACT 624 (HB1150) prohibits a pharmacy benefits manager from obtaining a pharmacy permit for the retail sale of drugs or medicines in this state, requires the Arkansas State Board of Pharmacy to revoke or not renew a permit of an entity that violates the prohibition under the section, and allows for the board to issue a limited use permit for certain rare, orphan, or limited distribution drugs that are otherwise unavailable in the market to a patient or a pharmacy that would otherwise be prohibited under the section.
ACT 708 (HB1582) amends the Division of Workforce Services law to require the state maintained job board to match an individual with a job and encourages an individual to apply for a job as part of his or her work search contacts.
ACT 881 (HB1922) allows an entity to use the investment tax credit allowed under the Consolidated Incentive Act of 2003 to offset its income tax or sales tax liability, changes the amount of the investment tax credit that the Arkansas Economic Development Commission may offer, repeals the tax incentives offered for technology-based enterprises, and creates an income tax credit for businesses that relocate their corporate headquarters to Arkansas.
ACT 621 (HB1594) creates a farmer sales tax identification card that an eligible farmer may present to a seller in lieu of an exemption certificate to claim a sales or use tax exemption. The act allows the Department of Finance and Administration to assess sales or use tax, interest, and a penalty against a purchaser who claims an exemption to which he or she was not eligible.
ACT 866 (HB1826) mandates coverage for the delivery of a newborn in a licensed birthing center under a health benefit plan on and after January 1, 2026.
ACT 261 (SB236) provides group capital calculation, liquidity stress testing, and receivership provisions for insurance holding companies as an accreditation requirement effective January 1, 2026.
ACT 740 (SB560) decreases the base contribution rate, increases the administrative assessment rate, increases funding for the skilled workforce in this state on and after January 1, 2026, and amends the Division of Workforce Services Training Trust Fund to allow the fund to be used for personal services, operating expenses, construction, grants, and worker training.
ACT 748 (SB521) provides a process for a law enforcement agency that incurred costs or expenses for training a law enforcement officer to seek reimbursement from each law enforcement agency that subsequently employs the law enforcement officer within twenty-four (24) months after the completion of the training.
ACT 880 (HB1809) allows for property owned by a trust or a limited liability company to qualify as a homestead for purposes of the property tax exemption for disabled veterans, surviving spouses, and minor dependent children of disabled veterans in certain circumstances.
ACT 147 (HB1315) authorizes the placement of a blood type designation on a driver’s license or identification card.
ACT 948 (HB1974) requires a state employer to verify all new employees through the EVerify system, prohibits the employment of unauthorized aliens, and authorizes the Department of Labor and Licensing to enforce the act.
ACT 716 (HB1896) abolishes the Information Network of Arkansas and transfers certain duties of the Information Network of Arkansas to the Division of Information Systems.
ACT 719 (SB567) changes the method for the sourcing of receipts for services and intangibles from the cost of performance to market-based sourcing for purposes of determining the apportionment of income derived from multistate operations.
ACT 701 and Act 709 (SB530) amends the Arkansas Wood Energy Products and Forest Maintenance Income Tax Credit to include wood byproducts, increase the required investment and job creation amounts for a project to qualify for the income tax credit, and decrease the amount of the income tax credit allowed. The act is identical to Act 709 of 2025.
ACT 616 (SB503) requires an employer that has at least seventy-five (75) employees to file its annual income tax withholding statement electronically and requires an employer that is required to file its annual statement of withholding electronically to file its withholding return electronically.
ACT 497 (HB1691) provides a property tax exemption for motor vehicles that are used exclusively for purposes of public charity and are subject to a lease of at least twelve (12) months by a public charity.
ACT 631 (HB1543) requires a state-funded entity to accept and accommodate recipients of Supplemental Nutrition Assistance Program benefits as work requirement volunteers.
ACT 680 (HB1749) adopts the Uniform Trust Decanting Act concerning the power of an authorized fiduciary to distribute property of a first trust to one (1) or more second trusts or to modify the terms of the first trust.
