The bill amends existing laws regarding the collection of sales and use taxes on new and used motor vehicles, trailers, and semitrailers in Arkansas. It mandates that sales tax be collected at the point of sale by dealers, rather than directly from the purchaser as previously required. Specifically, the bill modifies Arkansas Code 26-52-510 to clarify that taxes on sales by dealers must be collected at the time of sale, while taxes on sales by individuals must be paid to the Secretary of the Department of Finance and Administration before vehicle registration. Additionally, it introduces provisions for consumers who sell a used vehicle and subsequently purchase a new one, detailing how taxes should be calculated and allowing for deductions under certain conditions.

The bill also includes various amendments to ensure consistency across different sections of the law, such as clarifying the process for claiming rebates on taxes paid and specifying the documentation required for these claims. It establishes that the effective date for these changes will be the first day of the calendar quarter following the act's enactment. Overall, the bill aims to streamline the tax collection process for motor vehicle sales and enhance clarity for both consumers and dealers.

Statutes affected:
HB 1968: 14-164-333(a), 26-52-510(a), 26-52-510(b), 26-52-510(f), 26-52-523(c), 26-74-213(b), 26-74-408(b), 26-75-212(b), 26-82-108(b)