Bill Summary – FastDemocracy

Stricken language would be deleted from and underlined language would be added to present law.
 State of Arkansas
 94th General Assembly                        A Bill
 Regular Session, 2023                                                             SENATE BILL 566
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 By: Senator J. Bryant
 By: Representative McCollum
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                                   For An Act To Be Entitled
                AN ACT TO AMEND THE LAW CONCERNING THE SALES TAX
                APPLICABLE TO SALES OF CUSTOM MANUFACTURED HOMES,
                MODULAR HOMES, AND MOBILE HOMES; TO AMEND THE LAW
                CONCERNING THE SALES TAX APPLICABLE TO SALES OF PARK
                MODEL UNITS; TO DECLARE AN EMERGENCY; AND FOR OTHER
                PURPOSES.
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                                               Subtitle
                         TO AMEND THE LAW CONCERNING THE SALES TAX
                         APPLICABLE TO SALES OF PARK MODEL UNITS;
                         AND TO DECLARE AN EMERGENCY.
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 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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        SECTION 1.        Arkansas Code § 26-52-514(a), concerning the method of
 determining the total consideration for the sale of a vehicle, is amended to
 read as follows:
        (a)    The Secretary of the Department of Finance and Administration is
 authorized to adopt an alternative method for determining the total
 consideration for the sale of new or used:
                (1)      Manufactured homes, mobile homes, or modular homes, or park
 model units under § 26-52-801 et seq.;
                (2)      Aircraft under § 26-52-505; and
                (3)      Motor vehicles, trailers, or semitrailers under §§ 26-52-510
 and 26-53-126.
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      SECTION 2.     Arkansas Code Title 26, Chapter 52, Subchapter 8 is amended
 to read as follows:
                      Subchapter 8 — Custom Manufactured Homes
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      26-52-801. Definitions.
      As used in this subchapter:
              (1)   “Acquisition price” means the purchase price of the new
 manufactured home, or modular home, or park model unit to be paid by the
 purchaser as set forth on the actual invoice or bill of sale, excluding
 transportation and delivery fees, installation fees, and other items or
 services that are to be included as part of the final sale of the new
 manufactured home, or modular home, or park model unit by the retailer before
 the consideration of a trade-in allowance or down payment paid in cash or
 otherwise;
              (2)   “Manufactured home” means a factory-built structure produced
 in accordance with the National Manufactured Housing Construction and Safety
 Standards Act of 1974, 42 U.S.C. § 5401 et seq., and designed to be used as a
 dwelling unit;
              (3)   “Mobile home” means a structure built in a factory prior to
 the enactment of the National Manufactured Housing Construction and Safety
 Standards Act of 1974, 42 U.S.C. § 5401 et seq., and designed to be used as a
 dwelling unit; and
              (4)   “Modular home” means a factory-built structure produced in
 accordance to state or local construction codes and standards and designed to
 be used as a dwelling unit; and
              (5)   “Park model unit” means a factory-built unit produced in
 compliance with the American National Standards Institute A119.5 Park Model
 RV Standard, as it existed on January 1, 2020, or more stringent standards,
 and designed for occupancy when installed and anchored in accordance with the
 manufacturer's instructions with the elements of transportation removed.
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      26-52-802. Sale of manufactured homes, modular homes, park model units,
 or mobile homes.
      (a)     Whether from an established business or by a licensed retailer,
 every person selling manufactured homes, or modular homes, or park model
 units in this state shall obtain a permit and report and remit to the
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 Secretary of the Department of Finance and Administration as provided in this
 chapter, together with:
                   (1)   Copies of invoices, sales, tickets, or bills of sale
 reflecting the dates of all sales of the new manufactured homes, or modular
 homes, or park model units;
                   (2)   The purchaser's name and address;
                   (3)   The make, year, model, serial number, and acquisition price
 of each manufactured home, or modular home, or park model unit; and
                   (4)   If applicable, the amount of tax collected from the
 purchaser.
          (b)   Upon the initial sale of a new manufactured home, or modular home,
 or park model unit, the tax levied by this chapter shall be collected on
 sixty-two percent (62%) of the acquisition price of the new manufactured
 home, or modular home, or park model unit.
          (c)   No tax shall be due on the sale of a mobile home or on a
 subsequent sale of a manufactured home, or modular home, or park model unit,
 including any tax levied by this chapter or any other gross receipts tax
 levied by the state.
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          26-52-803. Enforcement.
          (a)   Any permittee who fraudulently attempts to evade any provision of
 this section or of this chapter shall be subject to having his or her permit
 revoked after notice and hearing provided in § 26-52-209.
          (b)(1)     Upon payment of all applicable registration and title fees, any
 manufactured home retailer licensed pursuant to § 27-14-601(a)(6) that makes
 a subsequent purchase of a manufactured home or park model unit for which the
 seller does not have a certificate of title may register the manufactured
 home or park model unit for the sole purpose of obtaining a certificate of
 title.
                   (2)   No license plate or decal shall be provided with the
 registration.
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          SECTION 3.      EMERGENCY CLAUSE.       It is found and determined by the
 General Assembly of the State of Arkansas that the Department of Finance and
 Administration has recently changed its interpretation of the tax status of
 park model units from considering them to be manufactured homes to
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 considering them to be recreational vehicles; that the department's new
 interpretation has created confusion among sellers that have been collecting
 and remitting the gross receipts tax on park model units as manufactured
 homes for years, has created an additional tax liability for purchasers of
 park model units, has delayed the issuance of titles required by banks and
 lenders for lien perfection purposes, and has created another legislative
 inequity in factory-built structures; and that this act is immediately
 necessary because it would correct the unexpected reversal in the
 department's interpretation and eliminate the inequity in the tax treatment
 of factory-built structures. Therefore, an emergency is declared to exist,
 and this act being immediately necessary for the preservation of the public
 peace, health, and safety shall become effective on:
            (1)   The date of its approval by the Governor;
            (2)   If the bill is neither approved nor vetoed by the Governor,
 the expiration of the period of time during which the Governor may veto the
 bill; or
            (3)   If the bill is vetoed by the Governor and the veto is
 overridden, the date the last house overrides the veto.
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Statutes affected: 
SB 566: 26-52-514(a)