AR SB688

Amends Arkansas tax law to require long-term rental vehicle tax to be paid on the basis of rental or lease payments made during the term of the lease for motor vehicles leased 30 days or more, regardless of whether gross receipts tax or compensating use tax was paid at the time of registration.

Modifies the long-term rental vehicle tax rate of 1.5% to apply to all motor vehicle rentals of 30 days or more, independent of whether initial taxes were paid at vehicle registration.

Lowers the threshold for automatic expiration of the long-term rental vehicle tax from 10% to 3% of all new motor vehicles registered in Arkansas during a calendar year that are leased vehicles.

Sets the expiration date of the long-term rental vehicle tax to June 30 of the fiscal year following the calendar year in which the 3% threshold is certified by the Chief Fiscal Officer, based on reliable statistical sources such as R.L. Polk & Co.

Makes all amendments effective on the first day of the calendar quarter following the act's effective date.