AR HB1845

Amends Arkansas sales and use tax law to treat insurance settlement transfers of used vehicles the same as trade-ins for tax computation purposes.

Allows consumers who transfer a used vehicle to an insurance company as part of a settlement to deduct that vehicle's value from the purchase price of a new or used vehicle purchased within 45 days, paying tax only on the net difference.

Requires consumers claiming the deduction to provide either a signed bill of sale or insurance settlement agreement documenting the value of the transferred vehicle to the revenue office at registration.

Denies the deduction if the consumer fails to provide required documentation, making the full purchase price subject to sales and use tax without any deduction.

Excludes the deduction if sales tax is already included in the insurer's payment for loss under Arkansas Code § 23-89-211, effective the first day of the calendar quarter following enactment.