AR
Arkansas House Bill HB1960

Arkansas 2025 Regular Session

Arkansas House Bill HB1960 Compare Versions

OldNewDifferences
11 Stricken language would be deleted from and underlined language would be added to present law.
2-Act 1013 of the Regular Session
3-*JLL377* 04-09-2025 18:26:21 JLL377
4-
5-State of Arkansas As Engrossed: S4/9/25 1
2+*JLL377* 04/01/2025 2:39:54 PM JLL377
3+State of Arkansas 1
64 95th General Assembly A Bill 2
75 Regular Session, 2025 HOUSE BILL 1960 3
86 4
97 By: Representative Wardlaw 5
10-By: Senator Stone 6
8+ 6
119 7
1210 For An Act To Be Entitled 8
1311 AN ACT TO AMEND THE LAW CONCERNING THE APPLICATION OF 9
1412 CERTAIN TAXES TO LEASED MOTOR VEHICLES; TO AMEND THE 10
1513 LAW CONCERNING THE ASSESSMENT AND PAYMENT OF PERSONAL 11
1614 PROPERTY TAXES ON CERTAIN LEASED MOTOR VEHICLES; TO 12
1715 PROVIDE THAT THE LESSEE OF A LEASED MOTOR VEHICLE IS 13
1816 THE OWNER OF THE LEASED MOTOR VEHICLE FOR PURPOSES OF 14
1917 THE ASSESSMENT AND PAYMENT OF PROPERTY TAXES; TO 15
2018 AMEND THE LAW CONCERNING THE MAXIMUM TAX LIMITATION 16
2119 ON THE LEVY OF LOCAL SALES AND USE TAXES ON SALES OF 17
2220 CERTAIN TANGIBLE PERSONAL PROPERTY; AND FOR OTHER 18
2321 PURPOSES. 19
2422 20
2523 21
2624 Subtitle 22
2725 TO PROVIDE THAT THE LESSEE OF A LEASED 23
2826 MOTOR VEHICLE IS THE OWNER FOR PURPOSES 24
2927 OF THE ASSESSMENT AND PAYMENT OF 25
3028 PROPERTY TAXES; AND TO AMEND THE LAW 26
3129 CONCERNING LOCAL SALES AND USE TAXES ON 27
3230 CERTAIN TANGIBLE PERSONAL PROPERTY. 28
3331 29
3432 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 30
3533 31
3634 SECTION 1. Arkansas Code § 26 -26-706, concerning lists of motor 32
3735 vehicle licenses for the purpose of property tax assessment, is amended to 33
3836 add an additional subsection to read as follows: 34
3937 (c) As used in this section, "vehicle owner" means, for purposes of a 35
40-motor vehicle that is leased pursuant to a contract providing for the use of 36 As Engrossed: S4/9/25 HB1960
38+motor vehicle that is leased pursuant to a contract providing for the use of 36 HB1960
4139
42- 2 04-09-2025 18:26:21 JLL377
43-
44-
40+ 2 04/01/2025 2:39:54 PM JLL377
4541 the motor vehicle by the lessee for a period of more than thirty (30) days , 1
4642 the lessee of the motor vehicle. 2
4743 3
4844 SECTION 2. Arkansas Code § 26 -26-903, concerning the requirement that 4
4945 the owner of property list the property for assessment, is amended to add an 5
5046 additional subsection to read as follows: 6
5147 (c) As used in this section, "owner" means, for purposes of a motor 7
5248 vehicle that is leased pursuant to a contract providing for the use of the 8
5349 motor vehicle by the lessee for a period of more than thirty (30) days , the 9
5450 lessee of the motor vehicle. 10
5551 11
5652 SECTION 3. Arkansas Code § 26 -26-1408(a)(1), concerning the time for 12
5753 the assessment and payment of personal property taxes, is amended to read as 13
5854 follows: 14
5955 (a)(1)(A) A taxpayer shall annually assess his or her tangible 15
6056 personal property for ad valorem taxes during the period from January 1 16
6157 through May 31. 17
6258 (B) A taxpayer's tangible personal property includes a 18
6359 motor vehicle that is leased pursuant to a contract providing for the use of 19
6460 the motor vehicle by the taxpayer as the lessee for a period of more than 20
6561 thirty (30) days. 21
6662 22
6763 SECTION 4. Arkansas Code § 27 -14-1015(a), concerning the payment of 23
6864 personal property taxes and the listing for assessment required for motor 24
6965 vehicles, is amended to read as follows: 25
7066 (a)(1) The owner of every vehicle subject to registration in Arkansas 26
7167 shall assess the vehicle with the county tax assessor in the county where 27
7268 required by law and within the time required by law. 28
7369 (2) As used in this section, "owner" means, for purposes of a 29
7470 vehicle that is leased pursuant to a contract providing for the use of the 30
7571 vehicle by the lessee for a period of more than thirty (30) days , the lessee 31
7672 of the vehicle. 32
7773 33
7874 SECTION 5. Arkansas Code § 26 -73-301(a), concerning the limitation on 34
7975 the levy of a local sales or use tax, is amended to read as follows: 35
80- (a)(1) Any municipal or county sales or use tax levied pursuant to the 36 As Engrossed: S4/9/25 HB1960
76+ (a)(1) Any municipal or county sales or use tax levied pursuant to the 36 HB1960
8177
82- 3 04-09-2025 18:26:21 JLL377
83-
84-
78+ 3 04/01/2025 2:39:54 PM JLL377
8579 laws of this state shall be levied and collected only on the first two 1
8680 thousand five hundred dollars ($2,500) of gross receipts, gross proceeds, or 2
8781 sales price on the sale of a: 3
8882 (1)(A) Motor vehicle; 4
8983 (2)(B) Aircraft; 5
9084 (3)(C) Watercraft; 6
9185 (4)(D) Modular home; 7
9286 (5)(E) Manufactured home; and 8
9387 (6)(F) Mobile home. 9
9488 (2) If a sale or lease subject to subdivision (a)(1) of this 10
9589 section involves periodic payments, the applicable sales and use tax shall 11
9690 be: 12
9791 (A) For the purpose of determining the application of the 13
9892 limitation provided under subdivision (a)(1) of this section, applied to the 14
9993 aggregate amount of all periodic payments due on the sale or lease; and 15
10094 (B) Collected: 16
10195 (i) On the first periodic payment due on the sale or 17
10296 lease; or 18
10397 (ii) Evenly distributed and collected on each 19
10498 separate periodic payment due on the sale or lease. 20
10599 21
106100 SECTION 6. Arkansas Code § 26 -74-220(a), concerning the maximum tax 22
107101 limitation on the levy of a county sales and use tax for capital 23
108102 improvements, is amended to add an additional subdivision to read as follows: 24
109103 (3) If a sale or lease subject to subdivision (a)(1) of this 25
110104 section involves periodic payments, the applicable sales and use tax shall 26
111105 be: 27
112106 (A) For the purpose of determining the application of the 28
113107 limitation provided under subdivision (a)(1) of this section, applied to the 29
114108 aggregate amount of all periodic payments due on the sale or lease; and 30
115109 (B) Collected: 31
116110 (i) On the first periodic payment due on the sale or 32
117111 lease; or 33
118112 (ii) Evenly distributed and collected on each 34
119113 separate periodic payment due on the sale or lease. 35
120- 36 As Engrossed: S4/9/25 HB1960
114+ 36 HB1960
121115
122- 4 04-09-2025 18:26:21 JLL377
123-
124-
116+ 4 04/01/2025 2:39:54 PM JLL377
125117 SECTION 7. Arkansas Code § 26 -74-320(a), concerning the maximum tax 1
126118 limitation on the levy of a county sales tax for capital improvements, is 2
127119 amended to add an additional subdivision to read as follows: 3
128120 (3) If a sale or lease subject to subdivision (a)(1) of this 4
129121 section involves periodic payments, the applicable sales and use tax shall 5
130122 be: 6
131123 (A) For the purpose of determining the application of the 7
132124 limitation provided under subdivision (a)(1) of this section, applied to the 8
133125 aggregate amount of all periodic payments due on the sale or lease; and 9
134126 (B) Collected: 10
135127 (i) On the first periodic payment due on the sale or 11
136128 lease; or 12
137129 (ii) Evenly distributed and collected on each 13
138130 separate periodic payment due on the sale or lease. 14
139131 15
140132 SECTION 8. Arkansas Code § 26 -74-412(a)(1), concerning the maximum tax 16
141133 limitation on the levy of a county sales and use tax for counties without an 17
142134 existing tax, is amended to add an additional subdivision to read as follows: 18
143135 (C) If a sale or lease subject to subdivision (a)(1)(A) of 19
144136 this section involves periodic payments, the applicable sales and use tax 20
145137 shall be: 21
146138 (i) For the purpose of determining the application 22
147139 of the limitation provided under subdivision (a)(1)(A) of this section, 23
148140 applied to the aggregate amount of all periodic payments due on the sale or 24
149141 lease; and 25
150142 (ii) Collected: 26
151143 (a) On the first periodic payment due on the 27
152144 sale or lease; or 28
153145 (b) Evenly distributed and collected on each 29
154146 separate periodic payment due on the sale or lease. 30
155147 31
156148 SECTION 9. Arkansas Code § 26 -74-612(a), concerning the maximum tax 32
157149 limitation on the levy of a county sales and use tax for capital 33
158150 improvements, is amended to add an additional subdivision to read as follows: 34
159151 (3) If a sale or lease subject to subdivision (a)(1) of this 35
160-section involves periodic payments, the applicable sales and use tax shall 36 As Engrossed: S4/9/25 HB1960
152+section involves periodic payments, the applicable sales and use tax shall 36 HB1960
161153
162- 5 04-09-2025 18:26:21 JLL377
163-
164-
154+ 5 04/01/2025 2:39:54 PM JLL377
165155 be: 1
166156 (A) For the purpose of determining the application of the 2
167157 limitation provided under subdivision (a)(1) of this section, applied to the 3
168158 aggregate amount of all periodic payments due on the sale or lease; and 4
169159 (B) Collected: 5
170160 (i) On the first periodic payment due on the sale or 6
171161 lease; or 7
172162 (ii) Evenly distributed and collected on each 8
173163 separate periodic payment due on the sale or lease. 9
174164 10
175165 SECTION 10. Arkansas Code § 26 -75-222(a), concerning the maximum tax 11
176166 limitation on the levy of a municipal sales and use tax for capital 12
177167 improvements, is amended to add an additional subdivision to read as follows: 13
178168 (3) If a sale or lease subject to subdivision (a)(1) of this 14
179169 section involves periodic payments, the applicable sales and use tax shall 15
180170 be: 16
181171 (A) For the purpose of determining the application of the 17
182172 limitation provided under subdivision (a)(1) of this section, applied to the 18
183173 aggregate amount of all periodic payments due on the sale or lease; and 19
184174 (B) Collected: 20
185175 (i) On the first periodic payment due on the sale or 21
186176 lease; or 22
187177 (ii) Evenly distributed and collected on each 23
188178 separate periodic payment due on the sale or lease. 24
189179 25
190180 SECTION 11. Arkansas Code § 26 -75-319(a), concerning the maximum tax 26
191181 limitation on the levy of a municipal sales tax for capital improvements, is 27
192182 amended to add an additional subdivision to read as follows: 28
193183 (3) If a sale or lease subject to subdivision (a)(1) of this 29
194184 section involves periodic payments, the applicable sales and use tax shall 30
195185 be: 31
196186 (A) For the purpose of determining the application of the 32
197187 limitation provided under subdivision (a)(1) of this section, applied to the 33
198188 aggregate amount of all periodic payments due on the sale or lease; and 34
199189 (B) Collected: 35
200- (i) On the first periodic payment due on the sale or 36 As Engrossed: S4/9/25 HB1960
190+ (i) On the first periodic payment due on the sale or 36 HB1960
201191
202- 6 04-09-2025 18:26:21 JLL377
203-
204-
192+ 6 04/01/2025 2:39:54 PM JLL377
205193 lease; or 1
206194 (ii) Evenly distributed and collected on each 2
207195 separate periodic payment due on the sale or lease. 3
208196 4
209197 SECTION 12. Arkansas Code § 26 -81-104(a)(2), concerning the amount of 5
210198 the tax levied under the Multicounty Airport and Riverport Financing Act, is 6
211199 amended to read as follows: 7
212200 (2)(A) Any tax levied pursuant to this chapter shall be levied 8
213201 and collected only on the first two thousand five hundred dollars ($2,500) of 9
214202 gross receipts, gross proceeds, or sales price from the sale of a: 10
215203 (i) Motor vehicle; 11
216204 (ii) Aircraft; 12
217205 (iii) Watercraft; 13
218206 (iv) Modular home; 14
219207 (v) Manufactured home; or 15
220208 (vi) Mobile home. 16
221209 (B) A vendor shall be responsible for collecting and 17
222210 remitting the tax only on the first two thousand five hundred dollars 18
223211 ($2,500) of gross receipts, gross proceeds, or sales price from the sale of 19
224212 a: 20
225213 (i) Motor vehicle; 21
226214 (ii) Aircraft; 22
227215 (iii) Watercraft; 23
228216 (iv) Modular home; 24
229217 (v) Manufactured home; or 25
230218 (vi) Mobile home. 26
231219 (C) If a sale or lease subject to subdivision (a)(2)(A) of 27
232220 this section involves periodic payments, the applicable sales and use tax 28
233221 shall be: 29
234222 (i) For the purpose of determining the application 30
235223 of the limitation provided under subdivision (a)(2)(A) of this section, 31
236224 applied to the aggregate amount of all periodic payments due on the sale or 32
237225 lease; and 33
238226 (ii) Collected: 34
239227 (a) On the first periodic payment due on the 35
240-sale or lease; or 36 As Engrossed: S4/9/25 HB1960
228+sale or lease; or 36 HB1960
241229
242- 7 04-09-2025 18:26:21 JLL377
243-
244-
230+ 7 04/01/2025 2:39:54 PM JLL377
245231 (b) Evenly distributed and collected on each 1
246232 separate periodic payment due on the sale or lease. 2
247233 (D) A vendor collecting, reporting, and remitting the 3
248234 county sales or use taxes shall show county taxes as a separate entry on the 4
249235 tax report form. 5
250236 6
251237 SECTION 13. Arkansas Code § 26 -82-115(a), concerning the maximum tax 7
252238 limitation on the levy of a sales and use tax under the Local Sales and Use 8
253239 Tax Economic Development Project Funding Act, is amended to read as follows: 9
254240 (a)(1) A sales and use tax levied under this chapter shall be levied 10
255241 and collected only on the first two thousand five hundred dollars ($2,500) of 11
256242 gross receipts, gross proceeds, or sales price on the sale of: 12
257243 (1)(A) Motor vehicles; 13
258244 (2)(B) Aircraft; 14
259245 (3)(C) Watercraft; 15
260246 (4)(D) Modular homes; 16
261247 (5)(E) Manufactured homes; or 17
262248 (6)(F) Mobile homes. 18
263249 (2) If a sale or lease subject to subdivision (a)(1) of this 19
264250 section involves periodic payments, the applicable sales and use tax shall 20
265251 be: 21
266252 (A) For the purpose of determining the application of the 22
267253 limitation provided under subdivision (a)(1) of this section, applied to the 23
268254 aggregate amount of all periodic payments due on the sale or lease; and 24
269255 (B) Collected: 25
270256 (i) On the first periodic payment due on the sale or 26
271257 lease; or 27
272258 (ii) Evenly distributed and collected on each 28
273259 separate periodic payment due on the sale or lease. 29
274260 30
275261 SECTION 14. DO NOT CODIFY. Effective dates. 31
276262 (a) Sections 1-4 of this act are effective for assessment years 32
277263 beginning on or after January 1, 2025. 33
278264 (b) Sections 5-13 of this act are effective on the first day of the 34
279265 calendar quarter following the effective date of this act. 35
280- 36 As Engrossed: S4/9/25 HB1960
281-
282- 8 04-09-2025 18:26:21 JLL377
283-
284-
285-/s/Wardlaw 1
286- 2
287- 3
288-APPROVED: 4/22/25 4
289- 5
290- 6
291- 7
292- 8
293- 9
294- 10
295- 11
296- 12
297- 13
298- 14
299- 15
300- 16
301- 17
302- 18
303- 19
304- 20
305- 21
306- 22
307- 23
308- 24
309- 25
310- 26
311- 27
312- 28
313- 29
314- 30
315- 31
316- 32
317- 33
318- 34
319- 35
320266 36