A Bill Being Considered in Arkansas Would Raise the Cap on the Sales Tax on Used Cars and Include Motorboats as Taxable Items

Little Rock, Arkansas – New legislation introduced on Monday would raise the lowest amount of used cars that could be taxed and include motorboats in the list of things that can be taxed.

On Monday, the first day of the legislative session, Sen. Justin Boyd (R-Forth Smith) and Rep. Lee Johnson (R-Greenwood) introduced SB49. Used cars that cost more than $10,000 but less than $15,000 would have to pay a 2.875% sales tax under the bill.

At the moment, the used car tax is charged on any car that costs more than $4,000 but less than $10,000. The 2.875% rate hasn’t changed since the last law was passed.

The price range for trailers and semitrailers would stay between $4,000 and $10,000. However, motorboats will be taxed at the rate for things worth more than $4,000 but less than $10,000 under the new law.

A website run by the Arkansas Department of Finance and Administration can be used to figure out car sales tax.