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Bill

HB 1688

TO AMEND ARKANSAS LAW CONCERNING THE USE OF A DEALER'S EXTRA LICENSE PLATE.

2025 Regular Session Introduced by Fran Cavenaugh and 1 co-sponsor

HB 1688 expands Arkansas dealer's extra license plate use to owners and officers, allowing community event participation while clarifying tax rules and penalties for misuse.

Notification that HB1688 is now Act 710
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WeVote Research Nonpartisan
Bill Summary · HB 1688

Summary of House Bill 1688 (Act 710)

Bill Number: HB 1688
Title: To Amend Arkansas Law Concerning the Use of a Dealer's Extra License Plate
Status: Now Act 710
Introduced: March 05, 2025
Sponsors: Representative Cavenaugh, Senator Stone

Purpose and Intent

House Bill 1688 aims to amend existing Arkansas law regarding the use of dealer's extra license plates. The bill seeks to expand the program by broadening the list of authorized users and permissible activities associated with these plates, while also addressing tax implications related to their use.

Key Provisions

HB 1688 introduces several significant changes to the dealer's extra license plate program:

  1. Expanded Authorized Users:

    • In addition to dealers, managers, and salespersons, the bill allows owners and officers of a dealership to use dealer's extra license plates.

  2. Increased Authorized Uses:

    • The bill adds two new permissible activities for vehicles with dealer's extra license plates:
      • Participation in community-related events (e.g., parades, car shows, festivals).
      • Compliance with manufacturer sales and service agreements.

  3. Tax Implications:

    • The bill clarifies that the use of a vehicle with a dealer's extra license plate will not be considered a withdrawal from stock for sales and use tax purposes. This includes use by individuals not authorized under the program.

  4. Penalties for Misuse:

    • The bill establishes fines for misuse of dealer's extra license plates, with penalties escalating for repeated offenses:
      • First offense: up to $250
      • Second offense: up to $500
      • Third and subsequent offenses: up to $1,000

  5. Suspension of Plates:

    • The Secretary of the Department of Finance and Administration may suspend dealer's extra license plates for misuse, with a suspension period of six months for the first offense and one year for subsequent offenses.

Affected Parties

  • Dealerships: The bill directly impacts motor vehicle dealerships by expanding the scope of who can use dealer's extra license plates and for what purposes.
  • Dealership Employees: Owners, officers, and managers will benefit from the expanded use of dealer's plates.
  • Consumers and the Public: Community events involving dealership vehicles may enhance public engagement and visibility for dealerships.

Procedural Aspects

  • The bill underwent several legislative actions, including amendments and committee reviews, before being passed and enrolled. Key dates include:
    • April 10, 2025: Senate amendment adopted.
    • April 16, 2025: Notification that HB 1688 is now Act 710.

Conclusion

HB 1688 represents a significant update to Arkansas law regarding dealer's extra license plates, aiming to provide greater flexibility for dealerships while ensuring compliance with tax regulations. The changes are designed to facilitate dealership operations and enhance community involvement through authorized vehicle use.

Compiled from official sources — confirm details with the bill’s official record.

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