AR SB134

Increases the sales and use tax exemption for used motor vehicles from $4,000 to $10,000, meaning no tax is due on used motor vehicles priced below $10,000.

Extends the reduced tax rate of 2.875% to used motor vehicles priced between $10,000 and $15,000 (previously applied only to vehicles priced $4,000-$10,000).

Applies the same tax exemption and reduced rate changes to both sales tax and compensating use tax on used motor vehicles, trailers, and semitrailers.

Maintains the $4,000 tax exemption threshold for new motor vehicles and trailers/semitrailers, and keeps the reduced rate for trailers and semitrailers priced $4,000-$10,000.

Effective on the first day of the calendar quarter following the bill's enactment date.