This bill amends existing laws regarding the assessment and payment of personal property taxes on leased motor vehicles in Arkansas. It establishes that the lessee of a motor vehicle, under a lease agreement lasting more than thirty days, is considered the owner for tax purposes. The bill introduces new definitions for "vehicle owner" and "owner" in the context of property tax assessments, ensuring that lessees are responsible for assessing and paying taxes on the vehicles they lease. Additionally, it modifies the time frame for assessing tangible personal property taxes to include leased vehicles.

Furthermore, the bill addresses the maximum tax limitations on local sales and use taxes for certain tangible personal property, including motor vehicles. It specifies that if a sale or lease involves periodic payments, the applicable sales and use tax will be calculated based on the total amount of those payments. The bill also outlines the collection process for these taxes, which can be applied to either the first payment or distributed evenly across all payments. The effective dates for the various sections of the bill are also included, with some provisions taking effect for assessment years beginning January 1, 2025.

Statutes affected:
Old version HB1960 V2 - 4-9-2025 06:26 PM: 26-26-706, 26-26-903, 26-26-1408(a), 27-14-1015(a), 26-73-301(a), 26-74-220(a), 26-74-320(a), 26-74-412(a), 26-74-612(a), 26-75-222(a), 26-75-319(a), 26-81-104(a), 26-82-115(a)
Old version HB1960 Original - 4-1-2025 03:00 PM: 26-26-706, 26-26-903, 26-26-1408(a), 27-14-1015(a), 26-73-301(a), 26-74-220(a), 26-74-320(a), 26-74-412(a), 26-74-612(a), 26-75-222(a), 26-75-319(a), 26-81-104(a), 26-82-115(a)
HB 1960: 26-26-706, 26-26-903, 26-26-1408(a), 27-14-1015(a), 26-73-301(a), 26-74-220(a), 26-74-320(a), 26-74-412(a), 26-74-612(a), 26-75-222(a), 26-75-319(a), 26-81-104(a), 26-82-115(a)
Act 1013: 26-26-706, 26-26-903, 26-26-1408(a), 27-14-1015(a), 26-73-301(a), 26-74-220(a), 26-74-320(a), 26-74-412(a), 26-74-612(a), 26-75-222(a), 26-75-319(a), 26-81-104(a), 26-82-115(a)