This bill amends the sales and use tax laws related to new and used motor vehicles, trailers, and semitrailers in Arkansas. It increases the sales and use tax exemption for used motor vehicles and repeals the special tax rate previously applied to certain used motor vehicles, trailers, and semitrailers. Specifically, the bill removes the existing provisions that exempted used motor vehicles from certain taxes and eliminates the special tax rate of 2.875% for used vehicles priced between $4,000 and $10,000. Additionally, it repeals the relevant sections of the Arkansas Code that governed these exemptions and special rates.

The bill also modifies the language regarding the tax rates applicable to used trailers and semitrailers, ensuring that the full gross receipts tax rate applies to sales of these items priced at $4,000 or more. Furthermore, it establishes that no tax is due for used vehicles, trailers, or semitrailers sold for less than $4,000. The effective date for these changes is set for the first day of the calendar quarter following the act's passage.

Statutes affected:
SB 133: 26-52-301, 26-52-317, 26-52-324, 26-52-302, 26-52-103, 26-52-601, 26-52-606, 26-52-510, 26-52-510(b), 26-53-106(a), 26-53-107, 26-53-145, 26-53-150, 26-53-126(b)