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Senate committee rejects proposal to raise used-car tax exemption to $7,500
Summary
The Senate Revenue & Tax Committee voted down House Bill 1342, which would have raised the used-vehicle sales-tax exemption from $4,000 to $7,500 effective 2022. DFA testified it could not support the bill because a fiscal impact had not been forecasted under the amendment.
The Senate Revenue & Tax Committee on a voice vote declined to advance House Bill 1342, a proposal to increase the state’s used-vehicle sales-tax exemption from $4,000 to $7,500.
Sponsor Senator Rice told the committee the change — with an amendment delaying the effective date to 2022 — would help working families buy safer, warrantied used cars and asked the full Senate to consider the measure. Lawmakers discussed delaying the effective date to ease budget timing and noted the proposal had broad sponsorship in the House.
Paul Goering of the Arkansas Department of Finance and Administration told the committee that DFA prepared a fiscal impact based on the bill’s original filing but had not forecasted the amended, delayed implementation. “At this point, DFA cannot be supportive of this bill because of the fiscal impact,” he said.
After questions and a sponsor closing, Senator Garner moved to report the bill do pass, and Senator Bledsoe seconded. The motion did not carry and the chair announced the measure failed to advance out of committee.
The committee did not record a detailed roll-call vote in the transcript. The decision means HB 1342 will not move from this committee to the Senate floor at this time; the sponsor may seek to refile or pursue other procedural paths.
