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AR SB638

Bill

Status

Passed

4/23/2025

Primary Sponsor

Justin Boyd

Click for details

Origin

Senate

95th General Assembly (2025 Regular)

AI Summary

  • Consumers purchasing new or used motorboats from dealers must pay sales and use taxes directly to the Secretary of the Department of Finance and Administration at the time of registration, rather than having the dealer collect the tax

  • A 10% penalty is assessed if the consumer fails to pay taxes when due, and both the penalty and taxes must be paid before a certificate of number will be issued for the motorboat

  • Trade-in credits apply: taxes are calculated on the net difference between the purchase price of the new/used motorboat and the credit given for the used motorboat taken in trade

  • Parts and accessories purchased by motorboat dealers for resale or reconditioning used motorboats for resale are exempt from gross receipts tax

  • The act was approved on April 22, 2025, with Sections 1 and 2 taking effect on the first day of the calendar quarter following the effective date

Legislative Description

To Amend The Law Concerning The Collection Of Sales And Use Tax On The Sale Of A New Or Used Motorboat; And To Provide For The Direct Payment Of Sales And Use Tax On A Motorboat Sold By A Motorboat Dealer.

Last Action

Notification that SB638 is now Act 1019

4/23/2025

Committee Referrals

Revenue and Taxation4/10/2025
Revenue & Taxation4/9/2025

Full Bill Text

No bill text available