Stricken language would be deleted from and underlined language would be added to present law.
Act 1013 of the Regular Session
*JLL377* 04-09-2025 18:26:21 JLL377
State of Arkansas As Engrossed: S4/9/25 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1960 3
4
By: Representative Wardlaw 5
By: Senator Stone 6
7
For An Act To Be Entitled 8
AN ACT TO AMEND THE LAW CONCERNING THE APPLICATION OF 9
CERTAIN TAXES TO LEASED MOTOR VEHICLES; TO AMEND THE 10
LAW CONCERNING THE ASSESSMENT AND PAYMENT OF PERSONAL 11
PROPERTY TAXES ON CERTAIN LEASED MOTOR VEHICLES; TO 12
PROVIDE THAT THE LESSEE OF A LEASED MOTOR VEHICLE IS 13
THE OWNER OF THE LEASED MOTOR VEHICLE FOR PURPOSES OF 14
THE ASSESSMENT AND PAYMENT OF PROPERTY TAXES; TO 15
AMEND THE LAW CONCERNING THE MAXIMUM TAX LIMITATION 16
ON THE LEVY OF LOCAL SALES AND USE TAXES ON SALES OF 17
CERTAIN TANGIBLE PERSONAL PROPERTY; AND FOR OTHER 18
PURPOSES. 19
20
21
Subtitle 22
TO PROVIDE THAT THE LESSEE OF A LEASED 23
MOTOR VEHICLE IS THE OWNER FOR PURPOSES 24
OF THE ASSESSMENT AND PAYMENT OF 25
PROPERTY TAXES; AND TO AMEND THE LAW 26
CONCERNING LOCAL SALES AND USE TAXES ON 27
CERTAIN TANGIBLE PERSONAL PROPERTY. 28
29
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 30
31
SECTION 1. Arkansas Code § 26 -26-706, concerning lists of motor 32
vehicle licenses for the purpose of property tax assessment, is amended to 33
add an additional subsection to read as follows: 34
(c) As used in this section, "vehicle owner" means, for purposes of a 35
motor vehicle that is leased pursuant to a contract providing for the use of 36 As Engrossed: S4/9/25 HB1960
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the motor vehicle by the lessee for a period of more than thirty (30) days, 1
the lessee of the motor vehicle. 2
3
SECTION 2. Arkansas Code § 26 -26-903, concerning the requirement that 4
the owner of property list the property for assessment, is amended to add an 5
additional subsection to read as follows: 6
(c) As used in this section, "owner" means, for purposes of a motor 7
vehicle that is leased pursuant to a contract providing for the use of the 8
motor vehicle by the lessee for a period of more than thirty (30) days, the 9
lessee of the motor vehicle. 10
11
SECTION 3. Arkansas Code § 26 -26-1408(a)(1), concerning the time for 12
the assessment and payment of personal property taxes, is amended to read as 13
follows: 14
(a)(1)(A) A taxpayer shall annually assess his or her tangible 15
personal property for ad valorem taxes during the period from January 1 16
through May 31. 17
(B) A taxpayer's tangible personal property includes a 18
motor vehicle that is leased pursuant to a contract providing for the use of 19
the motor vehicle by the taxpayer as the lessee for a period of more than 20
thirty (30) days. 21
22
SECTION 4. Arkansas Code § 27 -14-1015(a), concerning the payment of 23
personal property taxes and the listing for assessment required for motor 24
vehicles, is amended to read as follows: 25
(a)(1) The owner of every vehicle subject to registration in Arkansas 26
shall assess the vehicle with the county tax assessor in the county where 27
required by law and within the time required by law. 28
(2) As used in this section, "owner" means, for purposes of a 29
vehicle that is leased pursuant to a contract providing for the use of the 30
vehicle by the lessee for a period of more than thirty (30) days, the lessee 31
of the vehicle. 32
33
SECTION 5. Arkansas Code § 26 -73-301(a), concerning the limitation on 34
the levy of a local sales or use tax, is amended to read as follows: 35
(a)(1) Any municipal or county sales or use tax levied pursuant to the 36 As Engrossed: S4/9/25 HB1960
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laws of this state shall be levied and collected only on the first two 1
thousand five hundred dollars ($2,500) of gross receipts, gross proceeds, or 2
sales price on the sale of a: 3
(1)(A) Motor vehicle; 4
(2)(B) Aircraft; 5
(3)(C) Watercraft; 6
(4)(D) Modular home; 7
(5)(E) Manufactured home; and 8
(6)(F) Mobile home. 9
(2) If a sale or lease subject to subdivision (a)(1) of this 10
section involves periodic payments, the applicable sales and use tax shall 11
be: 12
(A) For the purpose of determining the application of the 13
limitation provided under subdivision (a)(1) of this section, applied to the 14
aggregate amount of all periodic payments due on the sale or lease; and 15
(B) Collected: 16
(i) On the first periodic payment due on the sale or 17
lease; or 18
(ii) Evenly distributed and collected on each 19
separate periodic payment due on the sale or lease. 20
21
SECTION 6. Arkansas Code § 26 -74-220(a), concerning the maximum tax 22
limitation on the levy of a county sales and use tax for capital 23
improvements, is amended to add an additional subdivision to read as follows: 24
(3) If a sale or lease subject to subdivision (a)(1) of this 25
section involves periodic payments, the applicable sales and use tax shall 26
be: 27
(A) For the purpose of determining the application of the 28
limitation provided under subdivision (a)(1) of this section, applied to the 29
aggregate amount of all periodic payments due on the sale or lease; and 30
(B) Collected: 31
(i) On the first periodic payment due on the sale or 32
lease; or 33
(ii) Evenly distributed and collected on each 34
separate periodic payment due on the sale or lease. 35
36 As Engrossed: S4/9/25 HB1960
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SECTION 7. Arkansas Code § 26 -74-320(a), concerning the maximum tax 1
limitation on the levy of a county sales tax for capital improvements, is 2
amended to add an additional subdivision to read as follows: 3
(3) If a sale or lease subject to subdivision (a)(1) of this 4
section involves periodic payments, the applicable sales and use tax shall 5
be: 6
(A) For the purpose of determining the application of the 7
limitation provided under subdivision (a)(1) of this section, applied to the 8
aggregate amount of all periodic payments due on the sale or lease; and 9
(B) Collected: 10
(i) On the first periodic payment due on the sale or 11
lease; or 12
(ii) Evenly distributed and collected on each 13
separate periodic payment due on the sale or lease. 14
15
SECTION 8. Arkansas Code § 26 -74-412(a)(1), concerning the maximum tax 16
limitation on the levy of a county sales and use tax for counties without an 17
existing tax, is amended to add an additional subdivision to read as follows: 18
(C) If a sale or lease subject to subdivision (a)(1)(A) of 19
this section involves periodic payments, the applicable sales and use tax 20
shall be: 21
(i) For the purpose of determining the application 22
of the limitation provided under subdivision (a)(1)(A) of this section, 23
applied to the aggregate amount of all periodic payments due on the sale or 24
lease; and 25
(ii) Collected: 26
(a) On the first periodic payment due on the 27
sale or lease; or 28
(b) Evenly distributed and collected on each 29
separate periodic payment due on the sale or lease. 30
31
SECTION 9. Arkansas Code § 26 -74-612(a), concerning the maximum tax 32
limitation on the levy of a county sales and use tax for capital 33
improvements, is amended to add an additional subdivision to read as follows: 34
(3) If a sale or lease subject to subdivision (a)(1) of this 35
section involves periodic payments, the applicable sales and use tax shall 36 As Engrossed: S4/9/25 HB1960
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be: 1
(A) For the purpose of determining the application of the 2
limitation provided under subdivision (a)(1) of this section, applied to the 3
aggregate amount of all periodic payments due on the sale or lease; and 4
(B) Collected: 5
(i) On the first periodic payment due on the sale or 6
lease; or 7
(ii) Evenly distributed and collected on each 8
separate periodic payment due on the sale or lease. 9
10
SECTION 10. Arkansas Code § 26 -75-222(a), concerning the maximum tax 11
limitation on the levy of a municipal sales and use tax for capital 12
improvements, is amended to add an additional subdivision to read as follows: 13
(3) If a sale or lease subject to subdivision (a)(1) of this 14
section involves periodic payments, the applicable sales and use tax shall 15
be: 16
(A) For the purpose of determining the application of the 17
limitation provided under subdivision (a)(1) of this section, applied to the 18
aggregate amount of all periodic payments due on the sale or lease; and 19
(B) Collected: 20
(i) On the first periodic payment due on the sale or 21
lease; or 22
(ii) Evenly distributed and collected on each 23
separate periodic payment due on the sale or lease. 24
25
SECTION 11. Arkansas Code § 26 -75-319(a), concerning the maximum tax 26
limitation on the levy of a municipal sales tax for capital improvements, is 27
amended to add an additional subdivision to read as follows: 28
(3) If a sale or lease subject to subdivision (a)(1) of this 29
section involves periodic payments, the applicable sales and use tax shall 30
be: 31
(A) For the purpose of determining the application of the 32
limitation provided under subdivision (a)(1) of this section, applied to the 33
aggregate amount of all periodic payments due on the sale or lease; and 34
(B) Collected: 35
(i) On the first periodic payment due on the sale or 36 As Engrossed: S4/9/25 HB1960
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lease; or 1
(ii) Evenly distributed and collected on each 2
separate periodic payment due on the sale or lease. 3
4
SECTION 12. Arkansas Code § 26 -81-104(a)(2), concerning the amount of 5
the tax levied under the Multicounty Airport and Riverport Financing Act, is 6
amended to read as follows: 7
(2)(A) Any tax levied pursuant to this chapter shall be levied 8
and collected only on the first two thousand five hundred dollars ($2,500) of 9
gross receipts, gross proceeds, or sales price from the sale of a: 10
(i) Motor vehicle; 11
(ii) Aircraft; 12
(iii) Watercraft; 13
(iv) Modular home; 14
(v) Manufactured home; or 15
(vi) Mobile home. 16
(B) A vendor shall be responsible for collecting and 17
remitting the tax only on the first two thousand five hundred dollars 18
($2,500) of gross receipts, gross proceeds, or sales price from the sale of 19
a: 20
(i) Motor vehicle; 21
(ii) Aircraft; 22
(iii) Watercraft; 23
(iv) Modular home; 24
(v) Manufactured home; or 25
(vi) Mobile home. 26
(C) If a sale or lease subject to subdivision (a)(2)(A) of 27
this section involves periodic payments, the applicable sales and use tax 28
shall be: 29
(i) For the purpose of determining the application 30
of the limitation provided under subdivision (a)(2)(A) of this section, 31
applied to the aggregate amount of all periodic payments due on the sale or 32
lease; and 33
(ii) Collected: 34
(a) On the first periodic payment due on the 35
sale or lease; or 36 As Engrossed: S4/9/25 HB1960
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(b) Evenly distributed and collected on each 1
separate periodic payment due on the sale or lease. 2
(D) A vendor collecting, reporting, and remitting the 3
county sales or use taxes shall show county taxes as a separate entry on the 4
tax report form. 5
6
SECTION 13. Arkansas Code § 26 -82-115(a), concerning the maximum tax 7
limitation on the levy of a sales and use tax under the Local Sales and Use 8
Tax Economic Development Project Funding Act, is amended to read as follows: 9
(a)(1) A sales and use tax levied under this chapter shall be levied 10
and collected only on the first two thousand five hundred dollars ($2,500) of 11
gross receipts, gross proceeds, or sales price on the sale of: 12
(1)(A) Motor vehicles; 13
(2)(B) Aircraft; 14
(3)(C) Watercraft; 15
(4)(D) Modular homes; 16
(5)(E) Manufactured homes; or 17
(6)(F) Mobile homes. 18
(2) If a sale or lease subject to subdivision (a)(1) of this 19
section involves periodic payments, the applicable sales and use tax shall 20
be: 21
(A) For the purpose of determining the application of the 22
limitation provided under subdivision (a)(1) of this section, applied to the 23
aggregate amount of all periodic payments due on the sale or lease; and 24
(B) Collected: 25
(i) On the first periodic payment due on the sale or 26
lease; or 27
(ii) Evenly distributed and collected on each 28
separate periodic payment due on the sale or lease. 29
30
SECTION 14. DO NOT CODIFY. Effective dates. 31
(a) Sections 1-4 of this act are effective for assessment years 32
beginning on or after January 1, 2025. 33
(b) Sections 5-13 of this act are effective on the first day of the 34
calendar quarter following the effective date of this act. 35
36 As Engrossed: S4/9/25 HB1960
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/s/Wardlaw 1
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APPROVED: 4/22/25 4
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