To Amend The Law Concerning The Collection Of Sales And Use Tax On The Sale Of A New Or Used Motorboat; And To Provide For The Direct Payment Of Sales And Use Tax On A Motorboat Sold By A Motorboat Dealer.
Impact
The bill impacts the way motorboat sales transactions are conducted within the state, changing the responsibility of tax collection from dealers to consumers. The proposed legislation aims to simplify the registration process for motorboats, as the taxes must be paid before a certificate of number is issued. Consequently, this alteration in the procedure could alleviate administrative burdens on dealers while ensuring tax compliance is directly managed by the state government.
Summary
House Bill 1857 aims to amend Arkansas law regarding the collection of sales and use tax for new and used motorboats. It specifies that consumers purchasing motorboats from dealers must directly pay the applicable sales and use taxes to the Secretary of the Department of Finance and Administration at the time of registration, rather than having these taxes collected by the motorboat dealers. This shift is intended to streamline the tax payment process and ensure the state collects the appropriate revenues from motorboat sales.
Contention
While the bill aims to provide a clearer framework for motorboat sales tax, there could be contention regarding how this affects consumers, especially those unfamiliar with the direct payment process. If consumers fail to pay the required taxes on time, they face a penalty of 10% of the taxes due. This could lead to disputes regarding the calculation of taxes and penalties, as well as concerns over potential financial impacts on buyers who do not account for these new procedures.
To Require The Gross Receipts Tax Due On The Retail Purchase Of A New Or Used Motorboat To Be Remitted By The Buyer Directly To The Department Of Finance And Administration.
To Increase The Sales And Use Tax Exemption For Used Motor Vehicles; And To Amend The Reduced Sales And Use Tax Rate Applicable To Purchases Of Used Motor Vehicles.
To Increase The Sales And Use Tax Exemption For Used Motor Vehicles; And To Repeal The Special Rate Of Tax For Certain Used Motor Vehicles, Trailers, And Semitrailers.
To Amend The Sales And Use Tax Laws Concerning Exemptions Related To Certain Machinery And Equipment; And To Allow A Sales And Use Tax Exemption For Certain Machinery And Equipment Placed In Inventory.
To Exempt A Manufacturer's Rebate On A Motor Vehicle From Sales And Use Tax; And To Exclude A Manufacturer's Rebate On A Motor Vehicle From The Definition Of "sales Price" Used For Purposes Of Determining Sales And Use Taxes.
To Amend The Law Concerning The Collection Of Sales And Use Tax On Motor Vehicles, Trailers, Semitrailers, And Motorboats, As Affirmed By Referred Act 19 Of 1958; And To Subject Certain Used Motorboats To A Special Rate Of Tax.
To Amend The Law Concerning The Collection Of Sales And Use Tax On The Sale Of A New Or Used Motorboat; And To Provide For The Direct Payment Of Sales And Use Tax On A Motorboat Sold By A Motorboat Dealer.