LITTLE ROCK, Ark. – Proposed legislation filed on Monday would raise the lower limit on what used cars could be taxed and add motorboats as taxable.
SB49 was filed by Sen. Justin Boyd (R-Forth Smith) and Rep. Lee Johnson (R-Greenwood) on Monday, the first day of the legislative session. The bill would require a 2.875% sales tax on used vehicles sold for more than $10,000 but less than $15,000.
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Currently, the used car tax applies at any vehicle above $4,000 but below $10,000. The 2.875% rate remains unchanged from previous legislation.
The $4,000 to $10,000 limit would remain for trailer or semitrailer sales. The proposed law does, however, add motorboats as something taxable at the over $4,000, under $10,000 rate.
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The Arkansas Department of Finance and Administration maintains a website for calculating vehicle sales tax…