Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas As Engrossed: S4/1/25
2 95th General Assembly
A Bill
3 Regular Session, 2025 SENATE BILL 82
4
5 By: Senators J. Payton, J. Boyd, Dees, J. Dotson, Flippo, Hill, B. Johnson, M. Johnson, G. Leding, F.
6 Love, M. McKee, C. Penzo, J. Petty, Rice, Stone, G. Stubblefield, D. Sullivan, C. Tucker
7
8
9 For An Act To Be Entitled
10 AN ACT TO AMEND THE LAW CONCERNING THE SALES AND USE
11 TAX APPLICABLE TO PURCHASES OF NEW OR USED MOTOR
12 VEHICLES, TRAILERS, AND SEMITRAILERS; TO INCREASE THE
13 SALES AND USE TAX EXEMPTION FOR USED MOTOR VEHICLES;
14 TO AMEND THE REDUCED SALES AND USE TAX RATE
15 APPLICABLE TO PURCHASES OF USED MOTOR VEHICLES; AND
16 FOR OTHER PURPOSES.
17
18
19 Subtitle
20 TO INCREASE THE SALES AND USE TAX
21 EXEMPTION FOR USED MOTOR VEHICLES; AND
22 TO AMEND THE REDUCED SALES AND USE TAX
23 RATE APPLICABLE TO PURCHASES OF USED
24 MOTOR VEHICLES.
25
26 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
27
28 SECTION 1. DO NOT CODIFY. Legislative findings.
29 The General Assembly finds that:
30 (1) Because Arkansas is a rural state, having reliable personal
31 transportation is essential for Arkansans to maintain employment, access
32 medical care, and obtain groceries and other daily necessities;
33 (2) Many working Arkansans have limited income and need
34 affordable personal transportation, which is impeded by the added expense of
35 sales and use tax on motor vehicles;
36 (3) The majority of motor vehicles that are sold for fifteen
*JLL104* 04-01-2025 10:29:36 JLL104
As Engrossed: S4/1/25 SB82
1 thousand dollars ($15,000) or less are used motor vehicles, which means that
2 sales or use tax has been collected previously on those motor vehicles at
3 least one (1) time and often multiple times for motor vehicles that have been
4 sold several times; and
5 (4) Arkansans who can afford only a motor vehicle valued at
6 fifteen thousand dollars ($15,000) or less often have to trade motor vehicles
7 more often than those who can afford more expensive motor vehicles, which
8 results in these Arkansans continually having to pay sales or use tax on
9 motor vehicle purchases even though they have the least ability to afford the
10 repeated payment of those taxes.
11
12 SECTION 2. Arkansas Code � 26-52-324(a), concerning the special tax
13 rate for certain used motor vehicles, trailers, and semitrailers, is amended
14 to read as follows:
15 (a) In lieu of the gross receipts or gross proceeds taxes levied under
16 �� 26-52-301 and 26-52-302, there is levied an excise tax on the gross
17 receipts or gross proceeds derived from the sale of a used motor vehicle,
18 trailer, or semitrailer that has a sales price of at least four thousand
19 dollars ($4,000) but less than ten thousand dollars ($10,000) the following
20 at the rate of two and eight hundred seventy-five thousandths percent
21 (2.875%):
22 (1) A used motor vehicle that has a sales price of at least ten
23 thousand dollars ($10,000) but less than fifteen thousand dollars ($15,000);
24 and
25 (2) A used trailer or semitrailer that has a sales price of at
26 least four thousand dollars ($4,000) but less than ten thousand dollars
27 ($10,000).
28
29 SECTION 3. Arkansas Code � 26-52-324, concerning the special tax rate
30 for certain used motor vehicles, trailers, and semitrailers, is amended to
31 add an additional subsection to read as follows:
32 (f) This section does not affect the exemptions provided under � 26-
33 52-436.
34
35 SECTION 4. Arkansas Code � 26-52-510(b)(1)(B), concerning the direct
36 payment of sales tax by consumer-users on new and used motor vehicles,
2 04-01-2025 10:29:36 JLL104
As Engrossed: S4/1/25 SB82
1 trailers, or semitrailers, is amended to read as follows:
2 (B)(i)(a) If the total consideration for the sale of the
3 new or used motor vehicle, or the new or used trailer, or semitrailer is less
4 than four thousand dollars ($4,000), no tax is due.
5 (b) If the total consideration for the sale of
6 the used motor vehicle is less than ten thousand dollars ($10,000), no tax is
7 due.
8 (c) If the total consideration for the sale of
9 a new motor vehicle, trailer, or semitrailer is four thousand dollars
10 ($4,000) or more, the full gross receipts tax rate levied under this chapter
11 shall be levied and collected.
12 (ii) If the total consideration for the sale of a
13 used motor vehicle, trailer, or semitrailer is at least four thousand dollars
14 ($4,000) but less than ten thousand dollars ($10,000), the gross receipts tax
15 due shall be determined under � 26-52-324.
16 (iii) If the total consideration for the sale of a
17 used motor vehicle, trailer, or semitrailer is ten thousand dollars ($10,000)
18 or more:,
19 (a) The exemption under subdivision
20 (b)(1)(B)(i)(a) of this section does not apply;
21 (b) The special tax rate provided in � 26-52-
22 324 does not apply; and
23 (c) The the full gross receipts tax rate
24 levied under this chapter shall be levied and collected.
25 (iv) If the total consideration for the sale of the
26 used motor vehicle is at least ten thousand dollars ($10,000) but less than
27 fifteen thousand dollars ($15,000), the gross receipts tax due shall be
28 determined under � 26-52-324.
29 (v) If the total consideration for the sale of the
30 used motor vehicle is fifteen thousand dollars ($15,000) or more, the full
31 gross receipts tax rate levied under this chapter shall be levied and
32 collected.
33 (vi) This subdivision (b)(1)(B) does not affect the
34 exemptions provided under � 26-52-436.
35
36 SECTION 5. Arkansas Code � 26-53-126(b)(2), concerning the
3 04-01-2025 10:29:36 JLL104
As Engrossed: S4/1/25 SB82
1 compensating use tax on new and used motor vehicles, trailers, or
2 semitrailers, is amended to read as follows:
3 (2)(A)(i) If the total consideration for the sale of the new or
4 used motor vehicle, or the new or used trailer, or semitrailer is less than
5 four thousand dollars ($4,000), no tax is due.
6 (ii) If the total consideration for the sale of the
7 used motor vehicle is less than ten thousand dollars ($10,000), no tax is
8 due.
9 (iii) If the total consideration for the sale of a
10 new motor vehicle, trailer, or semitrailer is four thousand dollars ($4,000)
11 or more, the full compensating use tax rate levied under this chapter shall
12 be levied and collected.
13 (B) If the total consideration for the sale of a used
14 motor vehicle, trailer, or semitrailer is at least four thousand dollars
15 ($4,000) but less than ten thousand dollars ($10,000), the compensating use
16 tax due shall be determined under � 26-53-150.
17 (C) If the total consideration for the sale of a used
18 motor vehicle, trailer, or semitrailer is ten thousand dollars ($10,000) or
19 more:,
20 (i) The exemption under subdivision (b)(2)(A)(i) of
21 this section does not apply;
22 (ii) The special tax rate provided in � 26-53-150
23 does not apply; and
24 (iii) The the full compensating use tax rate levied
25 under this chapter shall be levied and collected.
26 (D) If the total consideration for the sale of the used
27 motor vehicle is at least ten thousand dollars ($10,000) but less than
28 fifteen thousand dollars ($15,000), the compensating use tax due shall be
29 determined under � 26-53-150.
30 (E) If the total consideration for the sale of the used
31 motor vehicle is fifteen thousand dollars ($15,000) or more, the full
32 compensating use tax rate levied under this chapter shall be levied and
33 collected.
34 (F) This subdivision (b)(2) does not affect the exemptions
35 provided under � 26-53-144.
36
4 04-01-2025 10:29:36 JLL104
As Engrossed: S4/1/25 SB82
1 SECTION 6. Arkansas Code � 26-53-150(a)(1), concerning the special tax
2 rate for certain used motor vehicles, trailers, and semitrailers, is amended
3 to read as follows:
4 (a)(1) In lieu of the compensating use taxes levied under �� 26-53-106
5 and 26-53-107, there is levied an excise tax for the privilege of storing,
6 using, distributing, or consuming a used motor vehicle, trailer, or
7 semitrailer within this state if the sales price of the used motor vehicle,
8 trailer, or semitrailer is:
9 (A) For a used motor vehicle, at least ten thousand
10 dollars ($10,000) but less than fifteen thousand dollars ($15,000); and
11 (B) For a used trailer or semitrailer, at least four
12 thousand dollars ($4,000) but less than ten thousand dollars ($10,000).
13
14 SECTION 7. Arkansas Code � 26-53-150, concerning the special tax rate
15 for certain used motor vehicles, trailers, and semitrailers, is amended to
16 add an additional subsection to read as follows:
17 (f) This section does not affect the exemptions provided under � 26-
18 53-144.
19
20 SECTION 8. EFFECTIVE DATE. Sections 2-7 of this act are effective on
21 the first day of the calendar quarter following the effective date of this
22 act.
23
24 /s/J. Payton
25
26
27
28
29
30
31
32
33
34
35
36
5 04-01-2025 10:29:36 JLL104Every fact on this page links to its source, starting with the official bill record.