Motor carrier taxes - Arkansas

Property/Ad valorem taxes

Prior to being issued permanent motor vehicle registration tags, the carrier must show proof that the ad valorem taxes due by the previous October 15th have been paid. Acceptable proof is either a receipt from the local county tax collector, or certification of payment stamped on assessment papers.

Sales & use taxes

Arkansas imposes a sales tax on the purchase price of all vehicles purchased within the state. The purchases of new motor vehicles, trailers, and semitrailers are taxed at a rate of 6.50 percent. The purchases of used motor vehicles, trailers, and semitrailers are taxed at a rate of 3.50 percent if purchased at a price above $4,000 but below $10,000. However, if a used motor vehicle, trailer, or semitrailer is purchased at a price above $10,000, the purchase will be taxed at a rate of 6.50 percent. Any vehicle purchased at a price below $4,000 is not applicable for state sales tax and will not be charged. In addition, several cities and counties within Arizona impose their own sales and use taxes.

The sales tax is not collected on the sale of a new or used Class 6 or Class 7 truck that is registered under the International Registration Plan and is engaged in interstate commerce. All semitrailers are exempt from the sales tax as well.

The seller or dealer of a motor vehicle, trailer, or semitrailer does not collect the use tax due from the sale. Instead, the purchaser must pay the use tax directly to the Department of Finance and Administration at the time of registration and application for certification of title.

Owners of vehicles purchased outside of Arkansas are required to pay the full Arkansas sales tax if the initial registration is in Arkansas as there is no credit given for sales tax paid to another state. The exception to this would be if a vehicle was registered and licensed in another state prior to registration in Arkansas.

Other

For-hire carriers

Arkansas requires all motor carriers that operate for-hire into or through the state to file an Annual Carrier Report on or before March 31 of each year. The report is overseen by the Arkansas Public Service Commission, Tax Division.