The bill amends Arkansas sales and use tax laws specifically for motorboats, introducing a special excise tax rate of 2.875% for used motorboats priced between $4,000 and $10,000. This aligns the tax treatment of motorboats with that of used motor vehicles, trailers, and semitrailers. The legislation specifies that the sales price for tax purposes cannot be reduced by trade-in values and outlines the distribution of tax revenues to various funds, including general revenues and the Educational Adequacy Fund.

Additionally, the bill establishes a new section requiring consumers to pay the applicable sales tax directly to the Secretary of the Department of Finance and Administration when registering a motorboat, regardless of whether it is sold by a dealer or an individual. It clarifies that the exemption for isolated sales does not apply to motorboat sales and includes penalties for late tax payments. The bill also details how taxes are calculated based on sale prices, including provisions for trade-ins, and allows certain exemptions for bona fide nonresidents. The effective date for these provisions is set for the first day of the calendar quarter following the bill's enactment.

Statutes affected:
SB 394: 26-52-324, 26-52-301, 26-52-302, 26-52-601, 26-52-606, 26-52-510, 27-101-103, 26-53-150, 26-53-106, 26-53-107, 26-52-607, 26-53-126