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006.05.212-GR-13.1. CREDIT FOR VEHICLE DESTROYED BY CATASTROPHIC EVENT:

AR ADC 006.05.212-GR-13.1Arkansas Administrative Code

West's Arkansas Administrative Code
Title 006. Department of Finance and Administration
Division 05. Division of Revenues
Rule 212. 2008-3 Gross Receipts Tax Rules
Gross Receipts Tax Rules
Ark. Admin. Code 006.05.212-GR-13.1
006.05.212-GR-13.1. CREDIT FOR VEHICLE DESTROYED BY CATASTROPHIC EVENT:
Currentness
A. If a motor vehicle is damaged or destroyed, a consumer shall be entitled to a sales tax credit equal to the amount of state and local sales or use tax paid at registration if:
1. The vehicle is damaged or destroyed within one hundred eighty (180) days of registering the vehicle in Arkansas and paying Arkansas sales or use tax;
2. The damage is caused by a catastrophic event resulting from a natural cause; and
3. As a result of the catastrophic event, the value of the motor vehicle is reduced to less than thirty percent (30%) of its retail value based upon the NADA Official Price Guide or other approved publication
B. The vehicle owner must file a written request for credit with the Tax Credit Section of the Revenue Division and establish his entitlement to the credit. The claim must be filed within one (1) year of registration of the damaged vehicle.
C. If the vehicle owner traded in a vehicle on the purchase of the vehicle that is subsequently damaged or destroyed, the vehicle owner is also entitled to an additional credit for the traded in vehicle equal to the value of the traded in vehicle and shall be treated as a trade in for purposes of computing tax due on another vehicle.
D. The credits are valid for six (6) months from the date of issuance and shall be applicable only on the purchase of another motor vehicle by the consumer to whom the credits were issued.
E. “Natural cause” means an act occasioned exclusively by the violence of nature where all human agency is excluded from creating or entering into the cause of the damage or injury. Examples include tornadoes, earthquakes, floods, tsunamis, volcanic eruptions and hurricanes.

Credits

AUTHORITY: Ark. Code Ann. § 26-52-519
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.05.212-GR-13.1, AR ADC 006.05.212-GR-13.1
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