This bill amends the law regarding the collection of sales and use tax on the sale of new and used motorboats in Arkansas. It introduces a new section that mandates consumers to directly pay the sales and use tax to the Secretary of the Department of Finance and Administration when applying for a certificate of number for a motorboat sold by a dealer. The bill specifies that motorboat dealers will not collect these taxes, and penalties will be imposed for late payments. Additionally, it outlines the tax obligations when a used motorboat is traded in or sold, including the requirement for consumers to provide a signed bill of sale to claim deductions.

Furthermore, the bill establishes that the total consideration for a used motorboat will be determined based on either the actual sales price or the average loan value, whichever is greater. It also clarifies that certain transactions, such as those involving nonresidents or specific dealer permits, may be exempt from these taxes. The effective date for the new provisions is set for the first day of the calendar quarter following the act's enactment.