New law exempts farmers' markets from sales tax

I attended a town meeting in East Ogden Saturday morning, where several people met to rally around the idea of having a local farmers market for produce in that part of Little River County. Many farmers who supply fruit and vegetables to other area markets – like Kenneth and Donald Davis – were in attendance and are helping other residents get this idea off the ground. In the recent session of the Arkansas legislature, we confirmed that produce sold at these markets are exempt from sales tax. This had been in doubt under previous law, where a Department of Finance and Administration opinion stated that only produce sold where it was grown was exempt from sales tax. While the new law does exempt produce, it does not expand to cover other vendors who may sell trinkets, bandanas, and the like at some farmers’ markets.

I enjoy spending my Saturday mornings perusing local farmers’ markets, and now is a great time of the year to look for turnips, squash, strawberries, and onions. There are several farmers' markets in my district, including two here in Texarkana, one in Ashdown, and one in Stamps. I’m hopeful that the new law will spur some growth to these and other potential markets throughout Arkansas.