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Arkansas Senate Bill SB49

Arkansas 2025 Regular Session

Arkansas Senate Bill SB49 Compare Versions

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11 Stricken language would be deleted from and underlined language would be added to present law.
22 *CEB013* 01/13/2025 8:29:10 AM CEB013
33 State of Arkansas 1
44 95th General Assembly A Bill 2
55 Regular Session, 2025 SENATE BILL 49 3
66 4
77 By: Senator J. Boyd 5
88 By: Representative L. Johnson 6
99 7
1010 For An Act To Be Entitled 8
1111 AN ACT TO AMEND THE LAW CONCERNING THE SALES AND USE 9
1212 TAX APPLICABLE TO PURCHASES OF NEW OR USED MOTOR 10
1313 VEHICLES, TRAILERS, SEMITRAILERS, AND MOTORBOATS; TO 11
1414 AMEND THE LAW CONCERNING THE COLLECTION OF SALES AND 12
1515 USE TAX ON MOTOR VEHICLES, TRAILERS, SEMITRAILERS, 13
1616 AND MOTORBOATS; TO SUBJECT CERTAIN USED MOTORBOATS TO 14
1717 A SPECIAL RATE OF TAX; AND FOR OTHER PURPOSES. 15
1818 16
1919 17
2020 Subtitle 18
2121 TO AMEND THE LAW CONCERNING THE SALES 19
2222 AND USE TAX APPLICABLE TO PURCHASES OF 20
2323 NEW OR USED MOTOR VEHICLES, TRAILERS, 21
2424 SEMITRAILERS, AND MOTORBOATS; AND TO 22
2525 SUBJECT CERTAIN USED MOTORBOATS TO A 23
2626 SPECIAL RATE OF TAX. 24
2727 25
2828 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 26
2929 27
3030 SECTION 1. Arkansas Code § 26 -52-324 is amended to read as follows: 28
3131 26-52-324. Special tax rate for certain used motor vehicles, 29
3232 motorboats, trailers, and semitrailers. 30
3333 (a) In lieu of the gross receipts or gross proceeds taxes levied under 31
3434 §§ 26-52-301 and 26-52-302, there is levied an excise tax on the gross 32
3535 receipts or gross proceeds derived from the sale of a used motor vehicle, 33
3636 trailer, or semitrailer that has a sales price of at least four thousand 34
3737 dollars ($4,000) but less than ten thousand dollars ($10,000) the following 35
3838 at the rate of two and eight hundred seventy -five thousandths percent 36 SB49
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4141 (2.875%): 1
4242 (1) A used motor vehicle that has a sales price of at least ten 2
4343 thousand dollars ($10,000) but less than fifteen thousand dollars ($15,000); 3
4444 and 4
4545 (2) A used motorboat, trailer, or semitrailer that has a sales 5
4646 price of at least four thousand dollars ($4,000) but less than ten thousand 6
4747 dollars ($10,000). 7
4848 (b) The tax levied in this section shall be in addition to: 8
4949 (1) Any gross receipts or gross proceeds tax levied in the 9
5050 Arkansas Constitution; 10
5151 (2) Any gross receipts or gross proceeds tax levied by a 11
5252 municipality or county; and 12
5353 (3) Any additional gross receipts or gross proceeds tax levied 13
5454 in an Arkansas city and resulting from an election within that city conducted 14
5555 in accordance with §§ 26 -52-601 — 26-52-606. 15
5656 (c) For the purpose of determining whether the tax levied by this 16
5757 section applies to the sale of a used motor vehicle, motorboat, trailer, or 17
5858 semitrailer, the sales price for the used motor vehicle, motorboat, trailer, 18
5959 or semitrailer shall not be reduced by: 19
6060 (1) The value of a motor vehicle, motorboat, trailer or 20
6161 semitrailer traded in as part payment on the purchase price of the newly 21
6262 acquired motor vehicle, motorboat, trailer, or semitrailer; or 22
6363 (2) The amount received by the purchaser for the sale of another 23
6464 motor vehicle, motorboat, trailer, or semitrailer. 24
6565 (d) The revenues generated by the tax levied under this section shall 25
6666 be distributed as follows: 26
6767 (1) Seventy-six and six-tenths percent (76.6%) of the taxes, 27
6868 interest, penalties, and costs received by the Secretary of the Department of 28
6969 Finance and Administration under this section shall be deposited as general 29
7070 revenues; 30
7171 (2) Eight and five-tenths percent (8.5%) of the taxes, interest, 31
7272 penalties, and costs received by the secretary under this section shall be 32
7373 deposited into the Property Tax Relief Trust Fund; and 33
7474 (3) Fourteen and nine -tenths percent (14.9%) of the taxes, 34
7575 interest, penalties, and costs received by the secretary under this section 35
7676 shall be deposited into the Educational Adequacy Fund. 36 SB49
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7979 (e) The excise tax levied under this section shall be collected and 1
8080 paid in the same manner and at the same time as is prescribed in : 2
8181 (1) § 26-52-510 for the collection and payment of gross 3
8282 receipts taxes on motor vehicles, trailers, and semitrailers ; and 4
8383 (2) § 26-52-524 for the collection and payment of gross receipts 5
8484 and taxes on motorboats . 6
8585 (f) As used in this section, "motorboat" means the same as defined in 7
8686 § 27-101-103. 8
8787 9
8888 SECTION 2. Arkansas Code § 26 -52-510(b)(1)(B), concerning the direct 10
8989 payment of sales tax by consumer -users on new and used motor vehicles, 11
9090 trailers, or semitrailers, is amended to read as follows: 12
9191 (B)(i)(a) If the total consideration for the sale of the 13
9292 new or used motor vehicle, or the new or used trailer, or semitrailer is less 14
9393 than four thousand dollars ($4,000), no tax is due. 15
9494 (b) If the total consideration for the sale of 16
9595 the used motor vehicle is less than ten thousand dollars ($10,000), no tax is 17
9696 due. 18
9797 (c) If the total consideration for the sale of 19
9898 a new motor vehicle, trailer, or semitrailer is four thousand dollars 20
9999 ($4,000) or more, the full gross receipts tax rate levied under this chapter 21
100100 shall be levied and collected. 22
101101 (ii) If the total consideration for the sale of a 23
102102 used motor vehicle, trailer, or semitrailer is at least four thousand dollars 24
103103 ($4,000) but less than ten thousand dollars ($10,000), the gross receipts tax 25
104104 due shall be determined under § 26 -52-324. 26
105105 (iii) If the total consideration for the sale of a 27
106106 used motor vehicle, trailer, or semitrailer is ten thousand dollars ($10,000) 28
107107 or more:, 29
108108 (a) The exemption under subdivision 30
109109 (b)(1)(B)(i)(a) of this section does not apply; 31
110110 (b) The special tax rate provided in § 26 -52-32
111111 324 does not apply; and 33
112112 (c) The the full gross receipts tax rate 34
113113 levied under this chapter shall be levied and collected. 35
114114 (iv) If the total consideration for the sale of the 36 SB49
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117117 used motor vehicle is at least ten thousand dollars ($10,000) but less than 1
118118 fifteen thousand dollars ($15,000), the gross receipts tax due shall be 2
119119 determined under §26 -52-324. 3
120120 (v) If the total consideration for the sale of the 4
121121 used motor vehicle is fifteen thousand dollars ($15,000) or more, the full 5
122122 gross receipts tax rate levied under this chapter shall be levied and 6
123123 collected. 7
124124 8
125125 SECTION 3. Arkansas Code Title 26, Chapter 52, Subchapter 5, is 9
126126 amended to add an additional section to read as follows: 10
127127 26-52-524. Direct payment of tax by consumer -user — New and used 11
128128 motorboats — Definition. 12
129129 (a) As used in this section, "motorboat" means the same as defined in 13
130130 § 27-101-103. 14
131131 (b)(1) On or before the time for applying for a certificate of number 15
132132 as prescribed by § 27 -101-304, a consumer shall pay to the Secretary of the 16
133133 Department of Finance and Administration the tax levied by this chapter and 17
134134 all other gross receipts taxes levied by the state with respect to the sale 18
135135 of a new or used motorboat required to be numbered in this state, instead of 19
136136 the taxes being collected by the dealer or seller. 20
137137 (2) The secretary shall require the payment of the taxes at the 21
138138 time of registration before issuing a certificate of number for the new or 22
139139 used motorboat. 23
140140 (3)(A) The taxes apply regardless of whether the motorboat is 24
141141 sold by a motorboat dealer or an individual, corporation, or partnership not 25
142142 licensed as a motorboat dealer. 26
143143 (B) The exemption in § 26 -52-401(17) for isolated sales 27
144144 does not apply to the sale of a motorboat. 28
145145 (4) If the consumer fails to pay the taxes when due: 29
146146 (A) There is assessed a penalty equal to ten percent (10%) 30
147147 of the amount of taxes due; and 31
148148 (B) The consumer shall pay to the secretary the penalty 32
149149 under subdivision (b)(4)(A) of this section and the taxes due before the 33
150150 secretary issues a certificate of number for the motorboat. 34
151151 (c)(1)(A) Except as provided in this section, when a used motorboat is 35
152152 taken in trade as a credit or part payment on the sale of a new or used 36 SB49
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155155 motorboat, the tax levied by this chapter and all other gross receipts taxes 1
156156 levied by the state shall be paid on the net difference between the total 2
157157 consideration for the new or used motorboat sold and the credit for the used 3
158158 motorboat taken in trade. 4
159159 (B)(i)(a) If the total consideration for the sale of the 5
160160 new or used motorboat is less than four thousand dollars ($4,000), no tax is 6
161161 due. 7
162162 (b) If the total consideration for the sale of 8
163163 a new motorboat is four thousand dollars ($4,000) or more, the full gross 9
164164 receipts tax rate levied under this chapter shall be levied and collected. 10
165165 (ii) If the total consideration for the sale of a 11
166166 used motorboat is at least four thousand dollars ($4,000) but less than ten 12
167167 thousand dollars ($10,000), the gross receipts tax due shall be determined 13
168168 under § 26-52-324. 14
169169 (iii) If the total consideration for the sale of a 15
170170 used motorboat is ten thousand dollars ($10,000) or more, the full gross 16
171171 receipts tax rate levied under this chapter shall be levied and collected. 17
172172 (C)(i) When a used motorboat is sold by a consumer, rather 18
173173 than traded in as a credit or part payment on the sale of a new or used 19
174174 motorboat, and the consumer subsequently purchases a new or used motorboat of 20
175175 greater value within sixty (60) days of the sale, the tax levied by this 21
176176 chapter and all other gross receipts taxes levied by the state shall be paid 22
177177 on the net difference between the total consideration for the new or used 23
178178 motorboat purchased subsequently and the amount received from the sale of the 24
179179 used motorboat sold in lieu of a trade -in. 25
180180 (ii)(a) Upon applying for a certificate of number 26
181181 for the new or used motorboat, a consumer claiming the deduction provided by 27
182182 subdivision (c)(1)(C)(i) of this section shall provide a bill of sale signed 28
183183 by all parties to the transaction which reflects the total consideration paid 29
184184 to the seller for the motorboat. 30
185185 (b) A copy of the bill of sale shall be 31
186186 deposited with the department at the time of applying for a certificate of 32
187187 number for the new or used motorboat. 33
188188 (c) The deduction provided by this section 34
189189 shall not be allowed unless the taxpayer claiming the deduction provides a 35
190190 copy of a bill of sale signed by all parties to the transaction which 36 SB49
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193193 reflects the total consideration paid to the seller for the motorboat. 1
194194 (iii) If the taxpayer claiming the deduction 2
195195 provided in this section fails to provide a bill of sale signed by all 3
196196 parties to the transaction that reflects the total consideration paid to the 4
197197 seller for the motorboat, tax shall be due on the total consideration paid 5
198198 for the new or used motorboat without any deduction for the value of the item 6
199199 sold. 7
200200 (2)(A)(i) When a motorboat dealer removes a motorboat from its 8
201201 inventory and the motorboat is used by the dealership as a service motorboat, 9
202202 the dealer shall obtain a certificate of number, register and obtain a 10
203203 certificate of title, and pay sales tax on the listed retail price of the new 11
204204 motorboat. 12
205205 (ii)(a) When the motorboat dealer returns the 13
206206 service motorboat to inventory as a used motorboat and replaces it with a new 14
207207 motorboat for dealership use as a service motorboat, the dealer shall pay 15
208208 sales tax on the difference between the listed retail price of the new 16
209209 service motorboat to be used by the dealership and the value of the used 17
210210 service motorboat being returned to inventory. 18
211211 (b) The value of the used service motorboat 19
212212 shall be the highest listed wholesale price reflected in the most current 20
213213 edition of a publication that is generally accepted by the industry as 21
214214 providing an accurate valuation of used motorboats. 22
215215 (B)(i) As used in this subsection, “service motorboat” 23
216216 means a motorboat driven exclusively by an employee of the dealership and 24
217217 used either to transport dealership customers or dealership parts and 25
218218 equipment. 26
219219 (ii) “Service motorboat” does not include motorboats 27
220220 that are rented by the dealership, used as demonstration motorboats, or used 28
221221 by dealership employees for personal use. 29
222222 (d) All parts and accessories purchased by motorboat sellers for 30
223223 resale or used by motorboat sellers for the reconditioning or rebuilding of 31
224224 used motorboats intended for resale are exempt from gross receipts tax, 32
225225 provided that the motorboat seller meets the requirements of § 26 -52-33
226226 401(12)(A) and applicable rules promulgated by the secretary. 34
227227 (e) This section does not repeal any exemption from this chapter. 35
228228 (f) A credit is not allowed for sales or use taxes paid to another 36 SB49
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231231 state with respect to the purchase of a motorboat that first obtained a 1
232232 certificate of number or title by the purchaser in Arkansas. 2
233233 (g)(1)(A) A motorboat dealer with a permit under § 27 -101-302(5) who 3
234234 has purchased a used motorboat upon payment of all applicable fees may apply 4
235235 for a certificate of number for the motorboat for the sole purpose of 5
236236 obtaining a certificate of title to the motorboat without payment of gross 6
237237 receipts tax, except as provided in subdivision (g)(1)(B) of this section. 7
238238 (B)(i) The sale of a motorboat from the original franchise 8
239239 dealer to any other dealer, person, corporation, or other entity other than a 9
240240 franchise dealer of the same make of motorboat and which sale is reflected on 10
241241 the statement of origin shall be subject to gross receipts tax. 11
242242 (ii) The motorboat shall be considered a used 12
243243 motorboat that shall have a registered certificate of number and be titled, 13
244244 and tax shall be paid at the time of application for a certificate of number. 14
245245 (iii) Subdivision (g)(1)(A) of this section does not 15
246246 apply in the circumstances described in subdivisions (g)(1)(B)(i) and (ii). 16
247247 (2) If a certificate of number is issued for a motorboat under § 17
248248 27-101-302(5)(C), the used motorboat titled by a dealer under this subsection 18
249249 shall not be operated on the waters of this state unless there is displayed 19
250250 on the used motorboat the identifying certificate of number issued under § 20
251251 27-101-302(5)(C). 21
252252 (h)(1) For purposes of this section, the total consideration for a 22
253253 used motorboat shall be presumed to be the greater of the actual sales price 23
254254 as provided on the bill of sale, invoice or financing agreement, or the 24
255255 average loan value price of the motorboat as listed in the most current 25
256256 edition of a publication that is generally accepted by the industry as 26
257257 providing an accurate valuation of used motorboats. 27
258258 (2) If the published loan value exceeds the invoiced price, the 28
259259 taxpayer shall establish to the secretary's satisfaction that the price 29
260260 reflected on the invoice or other document is true and correct. 30
261261 (3) If the secretary determines that the invoiced price is not 31
262262 the actual selling price of the motorboat, the total consideration will be 32
263263 deemed to be the published loan value. 33
264264 34
265265 SECTION 4. Arkansas Code § 26 -53-126(b)(2), concerning the 35
266266 compensating use tax on new and used motor vehicles, trailers, or 36 SB49
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269269 semitrailers, is amended to read as follows: 1
270270 (2)(A)(i) If the total consideration for the sale of the new or 2
271271 used motor vehicle, or the new or used trailer, or semitrailer is less than 3
272272 four thousand dollars ($4,000), no tax is due. 4
273273 (ii) If the total consideration for the sale of the 5
274274 used motor vehicle is less than ten thousand dollars ($10,000), no tax is 6
275275 due. 7
276276 (iii) If the total consideration for the sale of a 8
277277 new motor vehicle, trailer, or semitrailer is four thousand dollars ($4,000) 9
278278 or more, the full compensating use tax rate levied under this chapter shall 10
279279 be levied and collected. 11
280280 (B) If the total consideration for the sale of a used 12
281281 motor vehicle, trailer, or semitrailer is at least four thousand dollars 13
282282 ($4,000) but less than ten thousand dollars ($10,000), the compensating use 14
283283 tax due shall be determined under § 26 -53-150. 15
284284 (C) If the total consideration for the sale of a used 16
285285 motor vehicle, trailer, or semitrailer is ten thousand dollars ($10,000) or 17
286286 more:, 18
287287 (i) The exemption under subdivision (b)(2)(A)(i) of 19
288288 this section does not apply; 20
289289 (ii) The special tax rate provided in § 26 -53-150 21
290290 does not apply; and 22
291291 (iii) The the full compensating use tax rate levied 23
292292 under this chapter shall be levied and collected. 24
293293 (D) If the total consideration for the sale of the used 25
294294 motor vehicle is at least ten thousand dollars ($10,000) but less than 26
295295 fifteen thousand dollars ($15,000), the compensating use tax due shall be 27
296296 determined under § 26 -53-150. 28
297297 (E) If the total consideration for the sale of the used 29
298298 motor vehicle is fifteen thousand dollars ($15,000) or more, the full 30
299299 compensating use tax rate levied under this chapter shall be levied and 31
300300 collected. 32
301301 33
302302 SECTION 5. Arkansas Code § 26 -53-150 is amended to read as follows: 34
303303 26-53-150. Special tax rate for certain used motor vehicles, 35
304304 motorboats, trailers, and semitrailers. 36 SB49
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307307 (a)(1) In lieu of the compensating use taxes levied under §§ 26 -53-106 1
308308 and 26-53-107, there is levied an excise tax for the privilege of storing, 2
309309 using, distributing, or consuming a used motor vehicle, motorboat, trailer, 3
310310 or semitrailer within this state if the sales price of the used motor 4
311311 vehicle, trailer, or semitrailer is: 5
312312 (A) For a used motor vehicle, at least ten thousand 6
313313 dollars ($10,000) but less than fifteen thousand dollars ($15,000); and 7
314314 (B) For a used motorboat, trailer, or semitrailer, at 8
315315 least four thousand dollars ($4,000) but less than ten thousand dollars 9
316316 ($10,000). 10
317317 (2) The excise tax levied under subdivision (a)(1) of this 11
318318 section is levied at the rate of two and eight hundred seventy -five 12
319319 thousandths percent (2.875%) of the sales price of the used motor vehicle, 13
320320 motorboat, trailer, or semitrailer. 14
321321 (b) The tax levied in this section shall be in addition to: 15
322322 (1) Any compensating use tax levied in the Arkansas 16
323323 Constitution; 17
324324 (2) Any compensating use tax levied by a municipality or county; 18
325325 and 19
326326 (3) Any additional compensating use tax levied in an Arkansas 20
327327 city under § 26-52-607. 21
328328 (c) For the purpose of determining whether the tax levied by this 22
329329 section applies to the sale of a used motor vehicle, motorboat, trailer, or 23
330330 semitrailer, the sales price for the used motor vehicle, motorboat trailer, 24
331331 or semitrailer shall not be reduced by: 25
332332 (1) The value of a motor vehicle, motorboat, trailer, or 26
333333 semitrailer traded in as part payment on the purchase price of the newly 27
334334 acquired motor vehicle, motorboat, trailer, or semitrailer; or 28
335335 (2) The amount received by the purchaser for the sale of another 29
336336 motor vehicle, motorboat, trailer, or semitrailer. 30
337337 (d) The revenues generated by the tax levied under this section shall 31
338338 be distributed as follows: 32
339339 (1) Seventy-six and six-tenths percent (76.6%) of the taxes, 33
340340 interest, penalties, and costs received by the Secretary of the Department of 34
341341 Finance and Administration under this section shall be deposited as general 35
342342 revenues; 36 SB49
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345345 (2) Eight and five-tenths percent (8.5%) of the taxes, interest, 1
346346 penalties, and costs received by the secretary under this section shall be 2
347347 deposited into the Property Tax Relief Trust Fund; and 3
348348 (3) Fourteen and nine -tenths percent (14.9%) of the taxes, 4
349349 interest, penalties, and costs received by the secretary under this section 5
350350 shall be deposited into the Educational Adequacy Fund. 6
351351 (e) The excise tax levied under this section shall be collected and 7
352352 paid in the same manner and at the same time as is prescribed in § 26 -53-126 8
353353 for the collection and payment of compensating use taxes on motor vehicles, 9
354354 motorboat, trailers, and semitrailers. 10
355355 (f) As used in this section, "motorboat" means the same as defined in 11
356356 § 27-101-103. 12
357357 13
358358 SECTION 6. Arkansas Code Title 26, Chapter 53, Subchapter 1, is 14
359359 amended to add an additional section to read as follows: 15
360360 26-53-151. Tax on new and used motorboats — Payment and collection — 16
361361 Definition. 17
362362 (a) As used in this section, "motorboat" means the same as defined in 18
363363 § 27-101-103. 19
364364 (b)(1) Upon applying for a certificate of number in this state, a new 20
365365 or used motorboat required to be registered with a certificate of number in 21
366366 this state is subject to the tax levied in this subchapter and all other use 22
367367 taxes levied by the state regardless of whether the motorboat was purchased 23
368368 from a dealer or an individual. 24
369369 (2)(A) On or before the time for applying for a certificate of 25
370370 number as prescribed by § 27 -101-304, the person making application for a 26
371371 certificate of number for the motorboat shall pay the taxes to the Secretary 27
372372 of the Department of Finance and Administration instead of the taxes being 28
373373 collected by the dealer or individual seller. 29
374374 (B) The secretary shall collect the taxes before issuing a 30
375375 certificate of number for the motorboat. 31
376376 (3) The exemption in § 26 -52-401(17) for isolated sales does not 32
377377 apply to the sale of a motorboat. 33
378378 (4) If the person making application for a certificate of number 34
379379 for a motorboat fails to pay the taxes when due: 35
380380 (A) There is assessed a penalty equal to ten percent (10%) 36 SB49
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383383 of the amount of taxes due; and 1
384384 (B) The person making application for a certificate of 2
385385 number for a motorboat shall pay to the secretary the penalty under 3
386386 subdivision (b)(4)(A) of this section and the taxes due before the secretary 4
387387 issues a certificate of number for the motorboat. 5
388388 (c)(1) When a used motorboat is taken in trade as a credit or part 6
389389 payment on the sale of a new or used motorboat, the tax levied in this 7
390390 subchapter and all other use taxes levied by the state shall be paid on the 8
391391 net difference between the total consideration for the new or used motorboat 9
392392 sold and the credit for the used motorboat taken in trade. 10
393393 (2)(A)(i) If the total consideration for the sale of the new or 11
394394 used motorboat is less than four thousand dollars ($4,000), no tax is due. 12
395395 (ii) If the total consideration for the sale of a 13
396396 new motorboat is four thousand dollars ($4,000) or more, the full 14
397397 compensating use tax rate levied under this chapter shall be levied and 15
398398 collected. 16
399399 (B) If the total consideration for the sale of a used 17
400400 motorboat is at least four thousand dollars ($4,000) but less than ten 18
401401 thousand dollars ($10,000), the compensating use tax due shall be determined 19
402402 under § 26-53-150. 20
403403 (C) If the total consideration for the sale of a used 21
404404 motorboat is ten thousand dollars ($10,000) or more: 22
405405 (i) The exemption under subdivision (c)(2)(A)(i) of 23
406406 this section does not apply; 24
407407 (ii) The special tax rate provided in § 26 -53-150 25
408408 does not apply; and 26
409409 (iii) The full compensating use tax rate levied 27
410410 under this chapter shall be levied and collected. 28
411411 (3)(A) When a used motorboat is sold by a consumer, rather than 29
412412 traded in as a credit or part payment on the sale of a new or used motorboat, 30
413413 and the consumer subsequently purchases a new or used motorboat of greater 31
414414 value within sixty (60) days of the sale, the tax levied by this chapter and 32
415415 all other gross receipts taxes levied by the state shall be paid on the net 33
416416 difference between the total consideration for the new or used motorboat 34
417417 purchased subsequently and the amount received from the sale of the used 35
418418 motorboat sold in lieu of a trade -in. 36 SB49
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421421 (B)(i) Upon applying for a certificate of number for the 1
422422 new or used motorboat, a consumer claiming the deduction provided by 2
423423 subdivision (c)(3)(A) of this section shall provide a bill of sale signed by 3
424424 all parties to the transaction which reflects the total consideration paid to 4
425425 the seller for the motorboat. 5
426426 (ii) A copy of the bill of sale shall be deposited 6
427427 with the department at the time of registration of the new or used motorboat. 7
428428 (iii) The deduction provided by this subdivision 8
429429 (c)(3) shall not be allowed unless the taxpayer claiming the deduction 9
430430 provides a copy of a bill of sale signed by all parties to the transaction 10
431431 that reflects the total consideration paid to the seller for the motorboat. 11
432432 (C) If the taxpayer claiming the deduction provided in 12
433433 this subdivision (c)(3) fails to provide a bill of sale signed by all parties 13
434434 to the transaction that reflects the total consideration paid to the seller 14
435435 for the motorboat, tax shall be due on the total consideration paid for the 15
436436 new or used motorboat without any deduction for the value of the item sold. 16
437437 (d) The tax imposed by this subchapter does not apply to a motorboat 17
438438 to be registered by a bona fide nonresident of this state. 18
439439 (e) This section does not repeal any exemption from this subchapter. 19
440440 (f)(1) Upon payment of all applicable fees, a motorboat dealer with a 20
441441 permit under § 27-101-302(5) who has purchased a used motorboat may apply for 21
442442 a certificate of number for the motorboat for the sole purpose of obtaining a 22
443443 certificate of title to the vehicle without payment of use tax. 23
444444 (2) If a certificate of number is issued for a motorboat under § 24
445445 27-101-302(5)(C), the used motorboat titled by a dealer under this subsection 25
446446 may not be operated on the waters of this state unless there is displayed on 26
447447 the used motorboat the identifying certificate of number issued under § 27 -27
448448 101-302(5)(C). 28
449449 (g)(1) For purposes of this section, the total consideration for a 29
450450 used motorboat shall be presumed to be the greater of the actual sales price 30
451451 as provided on a bill of sale, invoice or financing agreement, or the average 31
452452 loan value of the motorboat as listed in the most current edition of a 32
453453 publication which is generally accepted by the industry as providing an 33
454454 accurate valuation of used motorboats. 34
455455 (2) If the published loan value exceeds the invoiced price, the 35
456456 taxpayer shall establish to the secretary's satisfaction that the price 36 SB49
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459459 reflected on the invoice or other document is true and correct. 1
460460 (3) If the secretary determines that the invoiced price is not 2
461461 the actual selling price of the motorboat, the total consideration shall be 3
462462 deemed to be the published loan value. 4
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464464 SECTION 7. EFFECTIVE DATE. Sections 1 through 6 of this act are 6
465465 effective on the first day of the calendar quarter following the effective 7
466466 date of this act. 8
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