This bill amends the existing laws regarding sales and use tax applicable to the purchase of new and used motor vehicles, trailers, and semitrailers in Arkansas. It aims to increase the sales and use tax exemption for used motor vehicles and adjust the reduced sales and use tax rate for these purchases. The General Assembly recognizes the importance of affordable personal transportation for Arkansans, particularly those with limited income, and notes that many used vehicles are sold multiple times, leading to repeated tax payments on vehicles valued at $15,000 or less.

Key amendments include changes to the tax rates for used motor vehicles, with a new excise tax rate of 2.875% for used vehicles priced between $10,000 and $15,000, and adjustments to the tax exemptions for vehicles priced under $10,000. The bill also clarifies that if the total consideration for the sale of a used motor vehicle is at least $10,000 but less than $15,000, the gross receipts tax will be determined under the new provisions. The effective date for these changes will be the first day of the calendar quarter following the act's effective date.

Statutes affected:
SB 134: 26-52-324(a), 26-52-510(b), 26-53-126(b), 26-53-150(a)