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 their leased vehicles. Additionally, it modifies the timeframe for assessing personal property taxes to include leased vehicles and clarifies the obligations of lessees in this regard.

Furthermore, the bill addresses the local sales and use tax limitations on certain tangible personal property, specifically for vehicles and other items like aircraft and modular homes. It stipulates 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 sets effective dates for its provisions, with sections related to property tax assessments taking effect for assessment years beginning on or after January 1, 2025, while the sales and use tax provisions will be effective 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)