Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 82 3
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By: Senator J. Payton 5
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For An Act To Be Entitled 8
AN ACT TO AMEND THE LAW CONCERNING THE SALES AND USE 9
TAX APPLICABLE TO PURCHASES OF NEW OR USED MOTOR 10
VEHICLES, TRAILERS, AND SEMITRAILERS; TO INCREASE THE 11
SALES AND USE TAX EXEMPTION FOR USED MOTOR VEHICLES; 12
TO AMEND THE REDUCED SALES AND USE TAX RATE 13
APPLICABLE TO PURCHASES OF USED MOTOR VEHICLES; AND 14
FOR OTHER PURPOSES. 15
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Subtitle 18
TO INCREASE THE SALES AND USE TAX 19
EXEMPTION FOR USED MOTOR VEHICLES; AND 20
TO AMEND THE REDUCED SALES AND USE TAX 21
RATE APPLICABLE TO PURCHASES OF USED 22
MOTOR VEHICLES. 23
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 25
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SECTION 1. DO NOT CODIFY. Legislative findings. 27
The General Assembly finds that: 28
(1) Because Arkansas is a rural state, having reliable personal 29
transportation is essential for Arkansans to maintain employment, access 30
medical care, and obtain groceries and other daily necessities; 31
(2) Many working Arkansans have limited income and need 32
affordable personal transportation, which is impeded by the added expense of 33
sales and use tax on motor vehicles; 34
(3) The majority of motor vehicles that are sold for fifteen 35
thousand dollars ($15,000) or less are used motor vehicles, which means that 36 SB82
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sales or use tax has been collected previously on those motor vehicles at 1
least one (1) time and often multiple times for motor vehicles that have been 2
sold several times; and 3
(4) Arkansans who can afford only a motor vehicle valued at 4
fifteen thousand dollars ($15,000) or less often have to trade motor vehicles 5
more often than those who can afford more expensive motor vehicles, which 6
results in these Arkansans continually having to pay sales or use tax on 7
motor vehicle purchases even though they have the least ability to afford the 8
repeated payment of those taxes. 9
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SECTION 2. Arkansas Code § 26 -52-324(a), concerning the special tax 11
rate for certain used motor vehicles, trailers, and semitrailers, is amended 12
to read as follows: 13
(a) In lieu of the gross receipts or gross proceeds taxes levied under 14
§§ 26-52-301 and 26-52-302, there is levied an excise tax on the gross 15
receipts or gross proceeds derived from the sale of a used motor vehicle, 16
trailer, or semitrailer that has a sales price of at least four thousand 17
dollars ($4,000) but less than ten thousand dollars ($10,000) the following 18
at the rate of two and eight hundred seventy -five thousandths percent 19
(2.875%): 20
(1) A used motor vehicle that has a sales price of at least ten 21
thousand dollars ($10,000) but less than fifteen thousand dollars ($15,000); 22
and 23
(2) A used trailer or semitrailer that has a sales price of at 24
least four thousand dollars ($4,000) but less than ten thousand dollars 25
($10,000). 26
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SECTION 3. Arkansas Code § 26 -52-324, concerning the special tax rate 28
for certain used motor vehicles, trailers, and semitrailers, is amended to 29
add an additional subsection to read as follows: 30
(f) This section does not affect the exemptions provided under § 26 -31
52-436. 32
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SECTION 4. Arkansas Code § 26 -52-510(b)(1)(B), concerning the direct 34
payment of sales tax by consumer -users on new and used motor vehicles, 35
trailers, or semitrailers, is amended to read as follows: 36 SB82
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(B)(i)(a) If the total consideration for the sale of the 1
new or used motor vehicle, or the new or used trailer, or semitrailer is less 2
than four thousand dollars ($4,000), no tax is due. 3
(b) If the total consideration for the sale of 4
the used motor vehicle is less than ten thousand dollars ($10,000), no tax is 5
due. 6
(c) If the total consideration for the sale of 7
a new motor vehicle, trailer, or semitrailer is four thousand dollars 8
($4,000) or more, the full gross receipts tax rate levied under this chapter 9
shall be levied and collected. 10
(ii) If the total consideration for the sale of a 11
used motor vehicle, trailer, or semitrailer is at least four thousand dollars 12
($4,000) but less than ten thousand dollars ($10,000), the gross receipts tax 13
due shall be determined under § 26-52-324. 14
(iii) If the total consideration for the sale of a 15
used motor vehicle, trailer, or semitrailer is ten thousand dollars ($10,000) 16
or more:, 17
(a) The exemption under subdivision 18
(b)(1)(B)(i)(a) of this section does not apply; 19
(b) The special tax rate provided in § 26-52-20
324 does not apply; and 21
(c) The the full gross receipts tax rate 22
levied under this chapter shall be levied and collected. 23
(iv) If the total consideration for the sale of the 24
used motor vehicle is at least ten thousand dollars ($10,000) but less than 25
fifteen thousand dollars ($15,000) , the gross receipts tax due shall be 26
determined under § 26-52-324. 27
(v) If the total consideration for the sale of the 28
used motor vehicle is fifteen thousand dollars ($15,000) or more, the full 29
gross receipts tax rate levied under this chapter shall be levied and 30
collected. 31
(vi) This subdivision (b)(1)(B) does not affect the 32
exemptions provided under § 26 -52-436. 33
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SECTION 5. Arkansas Code § 26 -53-126(b)(2), concerning the 35
compensating use tax on new and used motor vehicles, trailers, or 36 SB82
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semitrailers, is amended to read as follows: 1
(2)(A)(i) If the total consideration for the sale of the new or 2
used motor vehicle, or the new or used trailer, or semitrailer is less than 3
four thousand dollars ($4,000), no tax is due. 4
(ii) If the total consideration for the sale of the 5
used motor vehicle is less than ten thousand dollars ($10,000), no tax is 6
due. 7
(iii) If the total consideration for the sale of a 8
new motor vehicle, trailer, or semitrailer is four thousand dollars ($4,000) 9
or more, the full compensating use tax rate levied under this chapter shall 10
be levied and collected. 11
(B) If the total consideration for the sale of a used 12
motor vehicle, trailer, or semitrailer is at least four thousand dollars 13
($4,000) but less than ten thousand dollars ($10,000), the compensating use 14
tax due shall be determined under § 26-53-150. 15
(C) If the total consideration for the sale of a used 16
motor vehicle, trailer, or semitrailer is ten thousand dollars ($10,000) or 17
more:, 18
(i) The exemption under subdivision (b)(2)(A)(i) of 19
this section does not apply; 20
(ii) The special tax rate provided in § 26-53-150 21
does not apply; and 22
(iii) The the full compensating use tax rate levied 23
under this chapter shall be levied and collected. 24
(D) If the total consideration for the sale of the used 25
motor vehicle is at least ten thousand dollars ($10,000) but less than 26
fifteen thousand dollars ($15,000) , the compensating use tax due shall be 27
determined under § 26-53-150. 28
(E) If the total consideration for the sale of the used 29
motor vehicle is fifteen thousand dollars ($15,000) or more, the full 30
compensating use tax rate levied under this chapter shall be levied and 31
collected. 32
(F) This subdivision (b)(2) does not affect the exemptions 33
provided under § 26-53-144. 34
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SECTION 6. Arkansas Code § 26 -53-150(a)(1), concerning the special tax 36 SB82
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rate for certain used motor vehicles, trailers, and semitrailers, is amended 1
to read as follows: 2
(a)(1) In lieu of the compensating use taxes levied under §§ 26 -53-106 3
and 26-53-107, there is levied an excise tax for the privilege of storing, 4
using, distributing, or consuming a used motor vehicle, trailer, or 5
semitrailer within this state if the sales price of the used motor vehicle, 6
trailer, or semitrailer is: 7
(A) For a used motor vehicle, at least ten thousand 8
dollars ($10,000) but less than fifteen thousand dollars ($15,000); and 9
(B) For a used trailer or semitrailer, at least four 10
thousand dollars ($4,000) but less than ten thousand dollars ($10,000). 11
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SECTION 7. Arkansas Code § 26 -53-150, concerning the special tax rate 13
for certain used motor vehicles, trailers, and semitrailers, is amended to 14
add an additional subsection to read as follows: 15
(f) This section does not affect the exemptions provided under § 26 -16
53-144. 17
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SECTION 8. EFFECTIVE DATE. Sections 2-7 of this act are effective on 19
the first day of the calendar quarter following the effective date of this 20
act. 21
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