SB566
To Amend The Law Concerning The Sales Tax Applicable To Sales Of Park Model Units; And To Declare An Emergency.
Last Action (May 1, 2023): Sine Die adjournment
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AI-Generated Summary
Senate Bill 566 amends Arkansas law to explicitly include 'park model units' in the tax and regulatory framework currently applied to manufactured, modular, and mobile homes. It authorizes the Department of Finance and Administration to establish an alternative method for determining the total consideration for the sale of these units. The bill mandates that sales tax on new park model units be collected on 62% of the acquisition price, consistent with the treatment of manufactured and modular homes. It also clarifies that no sales tax is due on subsequent sales of these units. The legislation includes an emergency clause to address recent changes in the Department's tax interpretation, which had previously reclassified park model units as recreational vehicles, causing administrative confusion and tax liability issues for buyers and lenders. The bill aims to standardize the tax treatment across these factory-built structures to ensure consistency and prevent financial inequity.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries include purchasers of park model units, who will see their tax liability stabilized and clarified; retailers and sellers of park model units, who will have clearer guidelines for tax collection and reporting; and financial institutions and lenders, who will face fewer administrative hurdles regarding title issuance and lien perfection.
Who Might Suffer?
There are no significant groups negatively impacted by this legislation, as it primarily serves to restore a previous, more favorable tax interpretation and streamline administrative processes. However, state revenue may be lower compared to a scenario where park model units were taxed as recreational vehicles at a higher base or different rate.
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