This bill amends Arkansas tax laws concerning the sales and use tax for 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 legislation clarifies that the sales price for tax liability will not be reduced by trade-in values and establishes that no tax is due for sales under $4,000. For used motor vehicles priced below $10,000, no tax is applicable, while new motor vehicles, trailers, or semitrailers priced at $4,000 or more will incur the full compensating use tax.

Additionally, the bill specifies that taxes on motorboats must be paid at the time of registration, regardless of the seller, and outlines the collection process to align with existing gross receipts taxes. It includes penalties for late tax payments and guidelines for assessing taxes when used motorboats are traded in or sold. The effective date for these new provisions is set for the first day of the calendar quarter following the act's effective date, aiming to streamline the tax process and ensure proper revenue collection for the state.

Statutes affected:
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
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
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