1. Sales of new and used airplanes are subject to sales or use tax. If gross receipts, sales, compensating (use), or other similar tax has been legally paid by the taxpayer to another state, then the taxpayer is entitled to credit for that tax. The taxpayer shall provide sufficient proof of such tax payment before credit is allowed.

2. If the total gross receipts or gross proceeds for the sale of new or used aircraft is less than $2,000.00, then sales or use tax is not due.

1. Purchaser's name and address.

2. Make, model, serial number, and gross sales price of each aircraft sold.

3. Make, model, serial number, and value assigned to any aircraft taken in trade as part payment on the sale of a new or used aircraft.

4. Amount of state and local tax collected from the purchaser.

5. Copies of invoices, sales tickets, or bills of sale concerning each aircraft sold and taken in trade. (If the invoice, sales ticket, or bill of sale contains the information required by this section, then only the invoices, sales tickets, or bills of sale must accompany the sales tax report.)

1. Affidavit signed by the seller and purchaser attesting to the sales price or trade-in value of the aircraft;

2. Aircraft valuation schedules prepared by the Assessment Coordination Division of the Arkansas Public Service Commission;

3. Any national trade publication generally accepted by aircraft dealers as accurately reflecting current aircraft market value; or

4. The higher of two appraisals prepared by other aircraft dealers.

1. Any person engaged in the business of selling aircraft in Arkansas who holds aircraft for resale in stock, may rent or use the aircraft in a charter service operated by that person for a period of one (1) year from the date of purchase of the aircraft without remitting the tax on the aircraft so used. If the aircraft purchased for resale requires substantial modification or substantial refurbishing prior to resale, the purchaser may use the aircraft in a rental or charter business for two (2) years before tax is due. The purchaser must collect gross receipts and one percent (1%) short-term rental tax (see Ark. Code Ann. § 26-63-301 and ET-5) on all non-charter rentals. When the aircraft is eventually sold, however, the tax must be remitted at the time of sale. If the aircraft is sold within the applicable one (1) or two (2) year holding period, the tax shall be computed on the actual sale price of such aircraft or the price paid for the aircraft by the seller, whichever is greater. If the rented or chartered aircraft is not sold during the applicable one-year or two-year holding period, then the tax must be remitted by the person engaged in the business of selling aircraft in Arkansas on his purchase price.

2. If an aircraft is rented by an aircraft charter service with a pilot's service included, the rental of aircraft and pilot service is a non-taxable service. If the aircraft alone is rented for a period of less than thirty (30) days, then the sales tax and the one percent (1%) short-term rental tax (see Ark. Code Ann. § 26-63-301 and ET-5) must be collected on the rental charge. If the aircraft alone is rented for thirty (30) days or more, then the tax must be collected and remitted upon the rental charges unless the Arkansas tax was paid on the purchase price of the aircraft.