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 leased motor vehicle is considered the owner for tax purposes, which affects how property taxes are assessed and paid. Specifically, new definitions are added to clarify that for vehicles leased for more than thirty days, the lessee is recognized as the owner. Additionally, the bill modifies the assessment period for personal property taxes to include leased vehicles and outlines the responsibilities of taxpayers in reporting these vehicles for tax assessment.

Furthermore, the bill addresses the limitations on local sales and use taxes for certain tangible personal property, including motor vehicles, by specifying how taxes should be applied when sales or leases involve periodic payments. It introduces provisions that require the sales and use tax to be calculated based on the total amount of periodic payments, with options for collection on the first payment or evenly distributed across all payments. The effective dates for the various sections of the bill are also specified, with some provisions taking effect for assessment years beginning January 1, 2025, and others on the first day of the calendar quarter following the bill's enactment.

Statutes affected:
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)
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)
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)