AR HB1857

Consumers must pay sales and use tax directly to the Secretary of the Department of Finance and Administration when applying for a certificate of number for a new or used motorboat purchased from a dealer, rather than having the dealer collect the tax

Trade-in credit allows tax to be paid only on the net difference between the purchase price and the trade-in value; alternatively, consumers who sell a used motorboat privately and purchase a replacement within 60 days may deduct the sale proceeds from the taxable amount

Failure to pay taxes when due results in a 10% penalty on the amount owed, which must be paid before a certificate of number will be issued

Motorboat dealers with permits may obtain certificates of number and title for used motorboats purchased for inventory without paying gross receipts tax, and parts/accessories for reconditioning used motorboats for resale are exempt from tax

Effective date is the first day of the calendar quarter following the act's effective date