This bill amends the sales tax exemption for aircraft held for resale and used for rental or charter in Arkansas. It clarifies that any person engaged in the business of selling aircraft, who holds a retail sales tax permit and has aircraft in stock for resale, may purchase aircraft exempt from sales tax and use them for rental or charter for up to one year. Additionally, if substantial modifications or refurbishments are needed before resale, the exemption period extends to two years. The bill also defines the "business of selling aircraft" as the purchase and management of aircraft inventory primarily for profit from resale.

Furthermore, the bill introduces new requirements for transactions involving the rental or leasing of aircraft. It stipulates that such transactions are exempt from sales tax only if the person renting or leasing the aircraft can demonstrate that their annual gross revenue from these activities is at least 7.5% of the aircraft's net acquisition price. The Department of Finance and Administration is tasked with creating rules to establish how this gross revenue is calculated. The exemption applies regardless of the relationship between the parties involved in the rental or lease. The provisions of this act will take effect on the first day of the calendar quarter following its enactment.

Statutes affected:
Old version HB1807 V2 - 4-7-2025 10:23 AM: 26-52-409(a), 26-52-409
Old version HB1807 Original - 3-17-2025 01:18 PM: 26-52-409(a), 26-52-409
HB 1807: 26-52-409(a), 26-52-409
Act 879: 26-52-409(a), 26-52-409