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Arkansas Code Title 26. Taxation § 26-52-324. Special tax rate for certain used motor vehicles, trailers, and semitrailers

Current as of March 28, 2024 | Updated by Findlaw Staff

(a) In lieu of the gross receipts or gross proceeds taxes levied under §§ 26-52-301 and 26-52-302, there is levied an excise tax on the gross receipts or gross proceeds derived from the sale of a used motor vehicle, trailer, or semitrailer that has a sales price of at least four thousand dollars ($4,000) but less than ten thousand dollars ($10,000) at the rate of two and eight hundred seventy-five thousandths percent (2.875%).

(b) The tax levied in this section shall be in addition to:

(1) Any gross receipts or gross proceeds tax levied in the Arkansas Constitution;

(2) Any gross receipts or gross proceeds tax levied by a municipality or county; and

(3) Any additional gross receipts or gross proceeds tax levied in an Arkansas city and resulting from an election within that city conducted in accordance with §§ 26-52-601 -- 26-52-606.

(c) For the purpose of determining whether the tax levied by this section applies to the sale of a used motor vehicle, trailer, or semitrailer, the sales price for the used motor vehicle, trailer, or semitrailer shall not be reduced by:

(1) The value of a motor vehicle, trailer or semitrailer traded in as part payment on the purchase price of the newly acquired motor vehicle, trailer, or semitrailer; or

(2) The amount received by the purchaser for the sale of another motor vehicle, trailer, or semitrailer.

(d) The revenues generated by the tax levied under this section shall be distributed as follows:

(1) Seventy-six and six-tenths percent (76.6%) of the taxes, interest, penalties, and costs received by the Secretary of the Department of Finance and Administration under this section shall be deposited as general revenues;

(2) Eight and five-tenths percent (8.5%) of the taxes, interest, penalties, and costs received by the secretary under this section shall be deposited into the Property Tax Relief Trust Fund; and

(3) Fourteen and nine-tenths percent (14.9%) of the taxes, interest, penalties, and costs received by the secretary under this section shall be deposited into the Educational Adequacy Fund.

(e) The excise tax levied under this section shall be collected and paid in the same manner and at the same time as is prescribed in § 26-52-510 for the collection and payment of gross receipts taxes on motor vehicles, trailers, and semitrailers.

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Cite this article: FindLaw.com - Arkansas Code Title 26. Taxation § 26-52-324. Special tax rate for certain used motor vehicles, trailers, and semitrailers - last updated March 28, 2024 | https://codes.findlaw.com/ar/title-26-taxation/ar-code-sect-26-52-324/

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