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Bill

SB 82

TO INCREASE THE SALES AND USE TAX EXEMPTION FOR USED MOTOR VEHICLES; AND TO AMEND THE REDUCED SALES AND USE TAX RATE APPLICABLE TO PURCHASES OF USED MOTOR VEHICLES.

2025 Regular Session Introduced by Justin Boyd and 17 co-sponsors

Arkansas bill to increase sales tax exemption and reduce tax rates on used motor vehicle purchases died in Senate Committee during 2025 session.

Died in Senate Committee at Sine Die adjournment.
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Bill Summary · SB 82

Legislative bill overview

SB 82 would have increased the sales and use tax exemption for used motor vehicles in Arkansas and reduced the applicable sales tax rate on used vehicle purchases. The bill underwent amendment during the legislative process but ultimately died in Senate Committee when the 2025 legislative session ended (Sine Die adjournment).

Why is this important

Used vehicle purchases represent significant financial transactions for many Arkansas households, and changes to tax rates directly affect consumer costs. This bill would have reduced the tax burden on used car buyers, potentially making vehicle purchases more affordable while also impacting state sales tax revenue.

Potential points of contention

  • Revenue impact: Expanding exemptions and reducing tax rates decreases state revenue, requiring offsetting budget cuts or alternative funding sources
  • Equity concerns: Tax exemptions for vehicle purchases may disproportionately benefit middle and upper-income households while potentially affecting funding for public services
  • Definition ambiguity: The bill's specific threshold for exemption and the reduced rate structure could create administrative challenges and inconsistent application across dealerships

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

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