AR SB394

Adds motorboats to the special tax rate of 2.875% for used motor vehicles priced between $4,000 and $10,000, with revenues distributed 76.6% to general revenues, 8.5% to Property Tax Relief Trust Fund, and 14.9% to Educational Adequacy Fund.

Requires consumers to pay sales and use taxes directly to the Department of Finance and Administration at the time of applying for a certificate of number, rather than through dealers or sellers.

Imposes a 10% penalty on consumers who fail to pay motorboat taxes when due, with the penalty and taxes required before certificate of number issuance.

Allows deductions for used motorboats taken in trade or sold within 60 days of a subsequent purchase, but requires signed bills of sale as proof; without documentation, full tax applies to the purchase price.

Establishes special provisions for motorboat dealers using service motorboats and allows title-only registration for dealers without tax payment, but motorboats cannot be operated on state waters unless displaying proper certificate of number.