AR HB1912

Reduces sales and use tax to 2.875% on used motor vehicles, trailers, and semitrailers with sales prices between $4,000 and $10,000, replacing the standard gross receipts tax rates.

Exempts used vehicles under $4,000 from sales and use tax; applies full tax rates to used vehicles $10,000 or more.

Trade-in values and amounts received from selling other vehicles cannot be deducted from the sales price when determining whether the reduced rate applies.

Distributes tax revenue as follows: 76.6% to general state revenues, 8.5% to Property Tax Relief Trust Fund, and 14.9% to Educational Adequacy Fund.

Effective January 1, 2022.