006.05.06 Ark. Code R. 005-GR-15.1 - NEW AND USED BOATS
A.
The gross receipts tax applies to the sale of all new boats. No deduction for a
traded-in boat is allowed from the total consideration for the sale of a new
boat when calculating sales tax.
B.
The gross receipts tax applies to the sale of all used boats unless (i) the
used property exemption of Ark. Code Ann. §
26-52-401(22)
applies (See GR-50); or (ii) the isolated sale exemption of Ark. Code Ann. §
26-52-401(17)
applies. No deduction for a traded-in boat is allowed from the total
consideration for the sale of a used boat when calculating sales tax.
C. All persons in the business of selling new
or used boats shall collect the tax and remit it to the Commissioner. Sales of
boats are sourced in accordance with the sourcing rules provided in Ark. Code
Ann. §
26-52-521 and GR-76.
D. Boat sellers are not required to collect
the tax on sales of boat trailers. The tax is collected at the revenue office
when the owner registers and licenses the boat trailer. If the seller sells a
boat and trailer to his customer, he should separately state the sales price of
the trailer on the sales invoice. If the seller does not separately state the
sales price of the boat and trailer, then he must collect and report tax on the
total amount and clearly document on the invoice or bill of sale that the tax
has been collected.
Notes
Ark. Code Ann. § 26-52-301
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.