Bill > SB638

This bill amends Arkansas tax law to modify how sales and use taxes are collected and paid for motorboats. The legislation requires consumers to directly pay sales and use taxes to the Secretary of the Department of Finance and Administration when registering a new or used motorboat, instead of having the tax collected by the motorboat dealer. If a consumer fails to pay the taxes when due, they will be assessed a 10% penalty. The bill also provides specific provisions for how taxes are calculated when a used motorboat is traded in, when a dealership uses a motorboat as a service vehicle, and when parts or accessories are purchased for resale or reconditioning. Additionally, the bill establishes that the total consideration for a used motorboat will be presumed to be either the actual sales price or the average loan value from an industry-recognized valuation publication, with the higher value being used if there is a discrepancy. The new tax collection method will take effect on the first day of the calendar quarter following the act's approval, which is dated April 22, 2025.

Budget and Finance

https://arkleg.state.ar.us/Bills/Detail?id=sb638&ddBienniumSession=2025%2F2025R