HB1807

House Bill 1807 amends Arkansas Code § 26-52-409 regarding sales tax exemptions for aircraft held for resale that are also used for rental or charter services. The bill clarifies eligibility requirements for these tax exemptions, specifying that individuals or businesses must hold a retail sales tax permit and be in the business of selling aircraft for profit. It maintains existing timeframes for tax-free rental or charter use, which are one year for standard purchases and up to two years for aircraft requiring substantial modification or refurbishment. Additionally, the bill introduces a new revenue requirement, stipulating that for a transaction to qualify for the exemption, the annual gross revenue from renting or leasing the aircraft must equal at least 7.5% of the net acquisition price. The legislation mandates that the Department of Finance and Administration establish the rules for calculating this revenue and clarifies that the exemption applies regardless of the relationship between the lessor and the lessee.