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 when applying for a certificate of number for a motorboat sold by a dealer. The bill specifies that the motorboat dealer 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 includes provisions for motorboats sold by dealers located outside of Arkansas, requiring similar tax payments upon application for a certificate of number. It clarifies that the total consideration for a used motorboat will be determined based on either the actual sales price or the average loan value, whichever is greater. The bill also states that certain exemptions remain intact and specifies that the effective date for these changes will be the first day of the calendar quarter following the act's approval.