AR HB1807

Amends Arkansas Code § 26-52-409 to clarify that any person (established business or individual) engaged in selling aircraft who holds a retail sales tax permit and holds aircraft in stock for resale may purchase aircraft tax-exempt and use them for rental or charter for up to 1 year from purchase date

Extends the tax-exempt rental/charter period to 2 years for aircraft requiring substantial modification or refurbishing prior to resale

Defines "business of selling aircraft" as purchasing aircraft for stock in trade and managing inventory primarily to generate profit from resale to customers

Requires persons claiming the exemption for aircraft acquired for renting/leasing to demonstrate annual gross rental revenue (including related party transactions) of at least 7.5% of the net acquisition price

Exemption applies regardless of any relationship between the aircraft provider and the person renting or leasing; approved April 17, 2025, effective the first day of the calendar quarter following enactment