Bill > SB82

This bill modifies the sales and use tax rates for used motor vehicles in Arkansas, aiming to provide tax relief for lower-income residents who rely on more affordable vehicles. The bill increases the sales tax exemption threshold for used motor vehicles from $4,000 to $10,000, meaning no sales tax will be due on used vehicles priced under $10,000. For used vehicles priced between $10,000 and $15,000, a reduced tax rate of 2.875% will apply. Vehicles priced at $15,000 or higher will be subject to the full sales tax rate. The legislative findings highlight that Arkansas is a rural state where personal transportation is crucial, and many working residents have limited incomes that make vehicle purchases financially challenging. The bill recognizes that lower-income residents often have to trade vehicles more frequently and are disproportionately burdened by repeated sales tax payments. The changes will apply to both sales and use taxes, and the new rates will take effect on the first day of the calendar quarter following the act's enactment. The bill also includes provisions ensuring that existing tax exemptions for certain vehicle purchases remain unchanged.

Budget and Finance

https://arkleg.state.ar.us/Bills/Detail?id=sb82&ddBienniumSession=2025%2F2025R