AR HB1968

Dealers selling new or used motor vehicles, trailers, or semitrailers must collect state and local sales taxes at the time of sale, rather than having the Secretary of the Department of Finance and Administration collect taxes directly from purchasers at registration

Private party (non-dealer) vehicle sales continue under the current system where the purchaser pays taxes to the Secretary at the time of vehicle registration

Consumers who sell a used vehicle privately and purchase a replacement vehicle from a dealer within 60 days must pay full tax at the dealer, then file a rebate claim to receive the trade-in deduction they would otherwise qualify for

Multiple sections of Arkansas Code governing local sales and use taxes for capital improvements and economic development projects are amended to accommodate the point-of-sale collection requirement for dealer transactions

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