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 affordable personal transportation for Arkansans, particularly those with limited income, and highlights that many used vehicles have already been taxed multiple times. The bill includes legislative findings that emphasize the need for a more equitable tax structure for lower-priced vehicles, which are predominantly used.

Key amendments include changes to the tax rates for used motor vehicles, with a new rate of 2.875% for vehicles priced between $10,000 and $15,000, and adjustments to the tax exemptions for vehicles priced below $10,000. The bill also clarifies that these changes do not affect existing exemptions under certain sections of the law. Additionally, it establishes an effective date for the new provisions, which will take effect on the first day of the calendar quarter following the bill's enactment.

Statutes affected:
Old version SB82 V2 - 4-1-2025 10:29 AM: 26-52-324(a), 26-52-324, 26-52-510(b), 04-01-2025, 26-53-126(b), 26-53-150(a), 26-53-150
Old version SB82 Original - 1-21-2025 12:29 PM: 26-52-324(a), 26-52-324, 26-52-510(b), 26-53-126(b), 26-53-150(a), 26-53-150
SB 82: 26-52-324(a), 26-52-324, 26-52-510(b), 26-53-126(b), 26-53-150(a), 26-53-150