HB1960

House Bill 1960 updates Arkansas tax laws regarding leased motor vehicles. The bill explicitly defines the 'owner' of a leased motor vehicle—for the purpose of assessment and payment of property taxes—as the person leasing the vehicle (the lessee) if the lease term exceeds thirty days. It mandates that lessees must annually assess these vehicles for personal property tax purposes. Additionally, the bill amends several sections of the Arkansas Code concerning local sales and use taxes on tangible personal property, including motor vehicles, aircraft, watercraft, and certain types of homes. It establishes that when a sale or lease of these items involves periodic payments, the tax limitation (the first $2,500 of the transaction) applies to the aggregate amount of all payments. The bill also provides that such sales and use taxes can be collected either in full on the first payment or distributed evenly across all periodic payments.