Bill > HB1807

This bill amends Arkansas' sales tax exemption for aircraft held for resale and used for rental or charter by clarifying and expanding the existing regulations. Specifically, the bill defines a "business of selling aircraft" as purchasing aircraft for stock and managing inventory with the primary purpose of generating profit from resale. The bill introduces a new requirement that to qualify for the sales tax exemption, a business must demonstrate that its annual gross revenue from renting or leasing the aircraft is at least 7.5% of the net acquisition price. The exemption period remains one year for standard aircraft, with a two-year exemption period for aircraft requiring substantial modification before resale. The bill also specifies that the exemption applies regardless of the relationship between the aircraft provider and the renter. The Department of Finance and Administration is tasked with creating rules to determine how businesses can establish their annual lease revenue. These changes will take effect on the first day of the calendar quarter following the act's approval, which was on 4/17/25, aiming to provide clearer guidelines for aircraft sales and rental businesses while maintaining a tax exemption framework.

Budget and Finance

https://arkleg.state.ar.us/Bills/Detail?id=hb1807&ddBienniumSession=2025%2F2025R