SB638

Senate Bill 638 amends Arkansas law regarding the collection of sales and use taxes on the sale of new and used motorboats. The bill mandates that these taxes be paid directly by the consumer to the Secretary of the Department of Finance and Administration at the time of vessel registration, rather than being collected by the motorboat dealer. It establishes specific procedures for tax calculation when a used motorboat is taken in trade, as well as rules for tax treatment regarding motorboats used as service vehicles by dealerships. Additionally, the bill provides exemptions for parts and accessories purchased by dealers for reconditioning motorboats intended for resale. It sets guidelines for determining the taxable value of used motorboats based on invoice price versus published industry loan values. Finally, the act outlines provisions for out-of-state dealer sales and establishes an effective date for these changes at the start of the next calendar quarter.