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AR HB1960

Bill

Status

Passed

4/22/2025

Primary Sponsor

Jeff Wardlaw

Click for details

Origin

House of Representatives

95th General Assembly (2025 Regular)

AI Summary

  • Lessees of motor vehicles leased for more than 30 days are now considered the "owner" for property tax assessment and payment purposes, shifting this responsibility from leasing companies to the individuals using the vehicles

  • Local sales and use taxes on motor vehicles, aircraft, watercraft, and homes (modular, manufactured, mobile) remain capped at the first $2,500 of gross receipts or sales price

  • For leases or sales with periodic payments, the $2,500 tax cap applies to the aggregate total of all payments, with tax collected either on the first payment or distributed evenly across all payments

  • Amendments apply to multiple county and municipal tax codes including capital improvement taxes, economic development project taxes, and multicounty airport/riverport financing taxes

  • Property tax provisions (Sections 1-4) are effective for assessment years beginning January 1, 2025; sales tax provisions (Sections 5-13) are effective the first calendar quarter following the act's approval on April 22, 2025

Legislative Description

To Provide That The Lessee Of A Leased Motor Vehicle Is The Owner For Purposes Of The Assessment And Payment Of Property Taxes; And To Amend The Law Concerning Local Sales And Use Taxes On Certain Tangible Personal Property.

Last Action

Notification that HB1960 is now Act 1013

4/22/2025

Committee Referrals

Revenue & Taxation4/9/2025
Revenue and Taxation4/1/2025

Full Bill Text

No bill text available