SB459 Summary

• Exempts gross receipts and proceeds from the purchase of a used motor vehicle from Arkansas state sales tax and compensating use tax.

• Maintains current tax treatment for new motor vehicles, trailers, and semitrailers, which remain subject to sales and use tax collected at registration.

• Allows tax deductions for used vehicles taken as trade-in credit on new vehicle purchases or sold separately within 45 days of a subsequent vehicle purchase, with documentation requirements including signed bills of sale.

• Establishes presumed valuation for used vehicles as the greater of actual sales price or average loan value from industry publications, with taxpayer burden to prove lower invoiced prices to the Secretary.

• Takes effect on the first day of the second calendar month following enactment for all three amended code sections.