Bill

Bill > HB1968


AR HB1968

AR HB1968
To Require The Collection Of Sales Tax At The Point Of Sale For The Sale Of A New Or Used Motor Vehicle, Trailer, Or Semitrailer By A Dealer; And To Amend Law Affirmed By Referred Act 19 Of 1958.


summary

Introduced
04/01/2025
In Committee
04/01/2025
Crossed Over
Passed
Dead
05/05/2025

Introduced Session

Potential new amendment
95th General Assembly (2025 Regular)

Bill Summary

AN ACT TO AMEND THE LAW CONCERNING THE COLLECTION OF SALES AND USE TAXES ON NEW OR USED MOTOR VEHICLES, TRAILERS, AND SEMITRAILERS, AS AFFIRMED BY REFERRED ACT 19 OF 1958; TO REQUIRE THE COLLECTION OF SALES TAX AT THE POINT OF SALE FOR THE SALE OF A NEW OR USED MOTOR VEHICLE, TRAILER, OR SEMITRAILER BY A DEALER; AND FOR OTHER PURPOSES.

AI Summary

This bill modifies Arkansas state law regarding sales tax collection for motor vehicles, trailers, and semitrailers. The primary change is shifting the point of sales tax collection from the Department of Finance and Administration (which previously collected taxes directly from purchasers during vehicle registration) to the point of sale by dealers. Under the new law, when a dealer sells a vehicle, sales taxes must be collected at the time of sale, rather than waiting until vehicle registration. For sales between private individuals, the tax will still be collected at registration. The bill also introduces a new process for consumers who sell a used vehicle and purchase a new one within 60 days, allowing them to potentially claim a tax deduction for the value of the sold vehicle, with specific filing requirements and procedures. If the subsequent vehicle is purchased from a dealer, the consumer will pay full tax at sale but can later file a claim for a rebate reflecting the value of the previously sold vehicle. These changes are designed to streamline the sales tax collection process for motor vehicles and provide more clarity for consumers and dealers. The bill will take effect on the first day of the calendar quarter following its enactment.

Committee Categories

Budget and Finance

Sponsors (6)

Last Action

Recommended for study in the Interim by the Committee on REVENUE & TAXATION- HOUSE (on 04/15/2025)

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