Arkansas House Bill HB1857

Arkansas 2025 Regular Session

• Introduced: 3/19/25
• Refer: 3/19/25

Caption

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.