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 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.

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 annual gross revenue from renting or leasing the aircraft is at least 7.5% of the net acquisition price. The Department of Finance and Administration is tasked with creating rules to determine this revenue. The exemption applies regardless of the relationship between the parties involved in the rental or lease. The effective date for these amendments is set for the first day of the calendar quarter following the act's approval.

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
Act 879: 26-52-409(a), 26-52-409