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, 26-52-524, which mandates that consumers must pay the applicable sales and use tax directly to the Secretary of the Department of Finance and Administration before applying for a certificate of number for a motorboat. The bill specifies that motorboat dealers will not collect these taxes, and it establishes penalties for consumers who fail to pay the taxes on time. Additionally, it outlines the tax implications when a used motorboat is traded in or sold, including the requirement for documentation such as a bill of sale to claim deductions.

Furthermore, the bill adds a new section, 26-53-151, which addresses the tax obligations for motorboats sold by dealers located outside of Arkansas. Similar to the previous section, it requires the payment of taxes before obtaining a certificate of number and includes provisions for penalties for late payment. The bill also clarifies that the total consideration for a used motorboat will be determined based on either the actual sales price or the average loan value, ensuring that the tax is assessed fairly. The effective date for these changes is set for the first day of the calendar quarter following the act's enactment.