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Committee advances bill to shift boat sales-tax collection to state finance office
Summary
A state legislative committee voted to advance a bill that would move collection of sales tax on motorboat purchases from dealers to the state finance office, matching how vehicle taxes are collected; the measure passed by voice vote and no public comment was recorded.
A legislative committee in Arkansas voted to advance a bill that would change how sales tax is collected on new and used motorboats purchased from motorboat dealers, moving collection to the state finance office at the time buyers obtain vehicle tags.
State Representative Lee Johnson (District 47), the bill's sponsor, said the measure is intended to create parity with motor-vehicle tax collection and to remove the administrative burden from dealers. "We're trying to change that so that these taxes are collected at DFNA in the same manner that we collect taxes on vehicles," Johnson said when introducing the measure, explaining that dealers currently collect the tax at the point of sale.
The proposal, described in the transcript as having "no physical impact," would have buyers pay sales tax when they go to the state finance office to obtain tags rather than having dealers collect the tax. Representative Blindstrom questioned whether the change simply requires buyers to visit the revenue office, calling the current process "hell's waiting room." Johnson responded that buyers already must obtain tags and that centralizing collection at the state office provides a single stop: "They're not doing any different process. It's just instead of putting the boat salesman in the place of having to collect the tax, the FNA is collecting it directly."
Representative Ray asked for the policy rationale; Johnson said the aim was parity with vehicle transactions and to relieve dealers of collection duties. Representative McClure asked whether other states follow the same practice; Johnson said he did not have that information and offered to look into it.
There were no registered public speakers for or against the bill. After the sponsor closed, a member moved to pass the bill. The committee proceeded by voice vote; the chair announced the bill had passed. The transcript records the outcome but does not provide a roll-call tally or the motion maker's name.
The chair thanked members and staff and said any subsequent meeting would be at the call of the chair before adjourning.
