006.05.212-ET-6. RENTAL VEHICLE TAX:
AR ADC 006.05.212-ET-6Arkansas Administrative Code
Ark. Admin. Code 006.05.212-ET-6
006.05.212-ET-6. RENTAL VEHICLE TAX:
A. In addition to the state and local sales or use tax, there is a rental vehicle tax on the gross receipts or gross proceeds derived from the short-term rental of motor vehicles required to be licensed in Arkansas. The rate of the rental vehicle tax is equal to ten percent (10%) of the gross receipts or gross proceeds, plus a local rental vehicle tax equal to the sales tax rate of the city and county in which the lessor's business is located. This rule should be read in conjunction with GR-12 and GR-20.
B. A motor vehicle required to be licensed in Arkansas includes any automobile, truck, van, motorcycle, truck tractor, or other self-propelled vehicle required to be licensed for highway use under the law of Arkansas, as well as a vehicle which is titled and registered in a state other than Arkansas, but which is the type of vehicle that would be required to be registered for highway use in Arkansas. The term “motor vehicle” does not include special mobile equipment as defined in Ark. Code Ann. § 27-14-211 or implements of husbandry as defined in Ark. Code Ann. § 27-14-212.
G. Whether a rental of a motor vehicle is considered long-term or short-term is dependent on the written contract and period for which payment is initially due. If a vehicle is rented initially for fourteen (14) days with the rental contract reflecting a term of rental for fourteen (14) days and the customer subsequently decides to continue renting the vehicle for twenty-one (21) more days, the transaction is treated as two short-term rentals, not one long-term rental. Lessors must maintain sufficient records to establish the intended term of the rental.
Credits
AUTHORITY: Ark. Code Ann. § 26-63-302
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.05.212-ET-6, AR ADC 006.05.212-ET-6
End of Document |