Used Car Tax – Family Council

Bill Filed to Reduce Arkansas’ Used Car Tax

Jan 14, 2025Jerry CoxLegislationArkansas Legislature, Used Car Tax

On Monday, lawmakers filed legislation reducing the tax on used cars.

S.B. 49 by Sen. Justin Boyd (R — Fort Smith) and Rep. Lee Johnson (R — Greenwood) would eliminate the sales tax on used cars sold for less than $10,000. Used cars sold for $10,000 – $15,000 would be taxed at a special rate of 2.875%. All other vehicles would be taxed at the standard rate.

The bill also amends taxes on motorboats and trailers.

Family Council has worked on reducing and eliminating Arkansas’ used car tax for more than a 15 years.

Car prices have skyrocketed in recent years, and many people can barely save enough money to buy a used vehicle. They can’t afford to pay the state on top of that. The used car tax hurts Arkansas’ poor and middle class families.

Single moms who need a reliable vehicle shouldn’t be penalized for buying a used car. S.B. 49 would help give families some relief.

You Can Read The Bill Here.

Arkansas Legislature Advances Bill to Reduce Used Car Tax

Apr 21, 2021Jerry CoxTaxesArkansas Legislature, Used Car Tax

On Wednesday the Senate Revenue and Tax Committee passed H.B. 1912.

This good bill by Rep. John Payton (R – Wilburn) and Sen. Jason Rapert (R – Conway) reduces the tax on used cars sold for $4,000 – $10,000 from 6.5% to 3.5%.

Family Council has worked on this issue for over a decade.

The used car tax hurts Arkansas’ poor and middle class families. A lot of folks can barely scrape together a few thousand dollars to buy a used car. They can’t afford to pay the state on top of that.

Single moms who need a reliable vehicle shouldn’t be penalized for buying a used car. H.B. 1912 gives families some relief.

This is commonsense legislation will help a lot of families.

The bill now goes to the entire Arkansas Senate for consideration.

Read The Bill Here.

Photo Credit: Ben Schumin, CC BY-SA 2.5 https://creativecommons.org/licenses/by-sa/2.5, via Wikimedia Commons.

Arkansas House Passes Bill to Reduce Used Car Tax

Apr 12, 2021Jerry CoxTaxesArkansas Legislature, Used Car Tax

On Monday the Arkansas House of Representatives passed H.B. 1160 by a vote of 97 to 0.

This good bill by Rep. John Payton (R – Wilburn) and Sen. Jason Rapert (R – Conway) eliminates the tax on used cars sold for less than $7,500.

In two years, the bill would expand to apply to used cars sold for less than $10,000.

This is a good bill. It changes state law so that people won’t have to pay sales tax if they spend less than $7,500 on a used car. That’s going to help a lot of families get a reliable vehicle without breaking the bank.

Family Council has worked on this issue for over a decade.

Single moms who need a reliable vehicle shouldn’t be penalized for buying a used car. H.B. 1160 gives families some relief.

This is commonsense legislation that’s going to help a lot of families, and it won’t cost the State very much in tax revenue.

H.B. 1160 now goes to the Arkansas Senate for consideration.

Photo Credit: Ben Schumin, CC BY-SA 2.5 https://creativecommons.org/licenses/by-sa/2.5, via Wikimedia Commons.