Bill > SB49

This bill updates Arkansas' sales and use tax regulations for motor vehicles, trailers, semitrailers, and motorboats, introducing new tax calculation methods and reporting requirements. Specifically, the bill modifies the tax rates and thresholds for used motor vehicles, creating a new graduated tax structure where vehicles valued between $10,000 and $15,000 are subject to a special 2.875% tax rate, while those valued at $15,000 or more will be taxed at the full gross receipts rate. The legislation also extends similar tax treatment to motorboats, requiring them to be registered and taxed at the time of obtaining a certificate of number, with provisions for trade-ins and sales between consumers. The bill establishes detailed rules for calculating taxes, including how to determine the total consideration for a used vehicle or boat, and requires dealers and consumers to provide specific documentation like bills of sale. Additionally, the bill mandates that taxes be paid directly to the Department of Finance and Administration, with penalties for non-compliance, and specifies how tax revenues will be distributed across general revenues, the Property Tax Relief Trust Fund, and the Educational Adequacy Fund. The new regulations will take effect on the first day of the calendar quarter following the act's enactment.

Budget and Finance

https://arkleg.state.ar.us/Bills/Detail?id=sb49&ddBienniumSession=2025%2F2025R