AR SB49

Raises the sales tax exemption threshold for used motor vehicles from $4,000 to $10,000, and increases the reduced tax rate threshold from $10,000 to $15,000, meaning used vehicles priced $10,000-$15,000 receive the special 2.875% rate instead of the full gross receipts tax

Extends the existing 2.875% special tax rate to used motorboats, trailers, and semitrailers priced between $4,000 and $10,000, with no tax due on sales under $4,000

Creates new direct payment requirements for motorboat sales and use taxes, requiring consumers to pay taxes to the Secretary of the Department of Finance and Administration at the time of registration rather than through dealers

Allows trade-in credits and 60-day replacement deductions for motorboat purchases, similar to existing rules for motor vehicles, where tax is calculated on the net difference between purchase price and trade-in value

Revenue from the special tax rate is distributed: 76.6% to general revenues, 8.5% to the Property Tax Relief Trust Fund, and 14.9% to the Educational Adequacy Fund