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. Additionally, the bill clarifies that the sales price for tax purposes will not be reduced by the value of any trade-ins. It also 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, and for used motor vehicles priced below $10,000.

Moreover, the bill outlines the process for direct payment of sales tax by consumers for motorboats, requiring payment to the Secretary of the Department of Finance and Administration before obtaining a registration certificate. It specifies tax obligations based on the sale price of motorboats, including exemptions for bona fide nonresidents and penalties for late payments. The bill aims to streamline tax collection and compliance while providing clear guidelines for the taxation of motorboats and related transactions, with an effective date set for 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