This bill amends the existing laws regarding sales and use tax applicable to the purchase of new and used motor vehicles, trailers, and semitrailers in Arkansas. It aims to increase the sales and use tax exemption for used motor vehicles and adjust the reduced sales and use tax rate for these purchases. The General Assembly recognizes the importance of reliable personal transportation for Arkansans, particularly those with limited income, and seeks to alleviate the financial burden imposed by sales and use taxes on motor vehicle purchases. The bill includes legislative findings that highlight the frequency of tax payments on used vehicles and the impact on low-income individuals.

Key amendments include changes to the tax rates for used motor vehicles, specifically raising the threshold for the reduced tax rate to apply to vehicles priced between $10,000 and $15,000, while maintaining the lower tax rate for trailers and semitrailers priced between $4,000 and $10,000. Additionally, the bill clarifies that certain exemptions remain unaffected by these changes. The effective date for the new provisions is set for the first day of the calendar quarter following the act's enactment.

Statutes affected:
SB 82: 26-52-324(a), 26-52-324, 26-52-510(b), 26-53-126(b), 26-53-150(a), 26-53-150