TO AMEND THE LAW CONCERNING THE COLLECTION OF SALES AND USE TAX ON THE SALE OF A NEW OR USED MOTORBOAT; AND TO PROVIDE FOR THE DIRECT PAYMENT OF SALES AND USE TAX ON A MOTORBOAT SOLD BY A MOTORBOAT DEALER.

Senate Bill 638, now Act 1019, amends the law concerning the collection of sales and use tax on new or used motorboat sales in Arkansas. The bill shifts the responsibility for collecting these taxes from motorboat dealers directly to the consumer. Buyers will now pay the applicable sales or use tax to the Department of Finance and Administration when applying for a certificate of number (registration) for their motorboat. This applies to motorboats purchased from both in-state and out-of-state dealers. The act also clarifies tax calculations for trade-ins and defines the presumed value for used motorboats.