This bill amends the law regarding the collection of sales and use tax on the sale of new and used motorboats in Arkansas. It introduces a new section that mandates consumers to directly pay the sales and use tax to the Secretary of the Department of Finance and Administration at the time of applying for a certificate of number for the motorboat. The bill specifies that motorboat dealers will not collect these taxes, and penalties will be imposed for late payments. Additionally, it outlines the tax obligations when a used motorboat is taken in trade and establishes guidelines for motorboat dealers regarding the registration and taxation of service motorboats.

Furthermore, the bill clarifies the tax implications for motorboats sold by dealers located outside of Arkansas, ensuring that these transactions are also subject to state taxes upon registration. It maintains existing exemptions and provides a framework for determining the total consideration for used motorboats based on either the actual sales price or the average loan value. The effective date for the new provisions is set for the first day of the calendar quarter following the act's approval.