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. This change is reflected in multiple sections of the Arkansas Code, specifically by inserting definitions of "vehicle owner" and "owner" to clarify that the lessee holds this status for property tax assessments. Additionally, the bill modifies the assessment period for personal property taxes to include leased vehicles and outlines the responsibilities of lessees in reporting these vehicles for tax purposes.

Furthermore, the bill addresses the local sales and use tax limitations on certain tangible personal property, including motor vehicles, by introducing provisions for how taxes should be applied when sales or leases involve periodic payments. It specifies that the applicable sales and use tax will be based on the total amount of all periodic payments and can be collected either on the first payment or distributed evenly across all payments. The effective dates for these changes are set for assessment years beginning January 1, 2025, and for other provisions, they will take effect on the first day of the calendar quarter following the bill's enactment.

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)