This bill amends Arkansas's sales and use tax laws concerning the purchase of new and used motor vehicles, trailers, semitrailers, and motorboats. It introduces a special excise tax rate of 2.875% for used motor vehicles priced between $10,000 and $15,000, as well as for used motorboats, trailers, or semitrailers priced between $4,000 and $10,000. The bill clarifies that the sales price for tax liability will not be reduced by the value of any trade-ins and establishes that no tax is due for sales of new or used motor vehicles or trailers if the total consideration is less than $4,000. Additionally, it specifies that for used motor vehicles priced below $10,000, no tax is due, while new motor vehicles, trailers, or semitrailers priced at $4,000 or more will incur the full compensating use tax.

Moreover, the bill outlines the collection process for the excise tax, requiring consumers to pay the tax on motorboats at the time of registration rather than through the dealer. It includes penalties for late tax payments and provides guidelines for tax calculations when used motorboats are sold or traded. A new section specifically addresses motorboat taxation, mandating that taxes be paid upon applying for a certificate of number, regardless of the seller. The bill also clarifies that the tax does not apply to motorboats registered by bona fide nonresidents and sets guidelines for motorboat dealers regarding tax exemptions when applying for titles. The provisions of this bill will take effect on the first day of the calendar quarter following its enactment.

Statutes affected:
Old version SB49 V2 - 2-12-2025 10:39 AM: 26-52-324, 26-52-301, 26-52-302, 02-12-2025, 26-52-601, 26-52-606, 26-52-510, 26-52-524, 27-101-103, 26-52-510(b), 26-53-126(b), 26-53-150, 26-53-106, 26-53-107, 26-52-607, 26-53-126
Old version SB49 Original - 1-13-2025 01:20 PM: 26-52-324, 26-52-301, 26-52-302, 26-52-601, 26-52-606, 26-52-510, 26-52-524, 27-101-103, 26-52-510(b), 26-53-126(b), 26-53-150, 26-53-106, 26-53-107, 26-52-607, 26-53-126
SB 49: 26-52-324, 26-52-301, 26-52-302, 26-52-601, 26-52-606, 26-52-510, 26-52-524, 27-101-103, 26-52-510(b), 26-53-126(b), 26-53-150, 26-53-106, 26-53-107, 26-52-607, 26-53-126