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.