The 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 maintains aircraft in stock for resale, may purchase aircraft exempt from sales tax and use them for rental or charter for up to one year. If substantial modifications or refurbishments are needed before resale, this period extends to two years. Additionally, the bill defines the "business of selling aircraft" as the purchase and management of aircraft inventory primarily for profit through resale, rental, lease, or charter.

New provisions are added to establish that a person acquiring an aircraft for rental or leasing must demonstrate that their annual gross revenue from such activities is at least 7.5% of the aircraft's net acquisition price to qualify for the exemption. The Department of Finance and Administration is tasked with creating rules to determine this revenue. Furthermore, the exemption applies regardless of the relationship between the parties involved in the rental or lease. The bill also specifies that the new provisions will take effect on the first day of the calendar quarter following its enactment.

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