AR HB1160

Increases the sales and use tax exemption threshold for used motor vehicles from $4,000 to $7,500, effective on the first day of the second calendar month following enactment.

Establishes a tiered exemption system where used motor vehicles qualify for a $10,000 exemption on or after two years from the effective date of the act.

Maintains the existing $4,000 exemption threshold for new motor vehicles, trailers, and semitrailers.

Amends Arkansas Code § 26-52-510(b)(1)(B) and § 26-53-126(b)(2) to modify both sales tax and use tax exemption provisions for motor vehicles.