SB394

Senate Bill 394 amends Arkansas law regarding the collection of sales and use taxes on motorboats. It establishes a special excise tax rate of 2.875% for used motorboats with a sales price between $4,000 and $10,000. The bill mandates that consumers pay sales and use taxes directly to the Department of Finance and Administration at the time of registration, rather than through a dealer. It removes the exemption for isolated sales of motorboats, meaning private sales are now subject to taxation. The legislation provides specific methods for calculating the taxable value, including provisions for trade-ins and scenarios where a consumer sells a motorboat privately and purchases a replacement within 60 days. It also outlines tax procedures for motorboat dealers regarding service motorboats and reconditioning. Finally, it specifies the distribution of tax revenues among general state funds, the Property Tax Relief Trust Fund, and the Educational Adequacy Fund.