Home › Forums › Bass Cat Boats › Sales tax in Arkansas on new boat w/trade in
SteveD.
Does anyone know if on a new boat purchase involving a trade in, if registering in Arkansas do you pay sales tax on the full purchase price or do you pay the tax on the amount net of your trade in?
It will be the full purchase
1997 Pantera Classic
1999 Mercury 200 HP Optimax
Bob’s 6” Hydraulic Jack Plate
You would only pay tax I would think on the trade difference. You’ve already paid tax on the original once. I know the used boats I’ve sold into Arkansas through dealers the buyer only had to pay sales tax on the trailer but personal property tax on the boat and motor
on the last 3 used boats I have purchased, I have never paid sales tax because the trailer has never been worth more than $4k. Arkansas doesn’t recognize the boat and motor and issues no titles for them, only the trailer. the boat and motor will have their MSO from the factories but that is it. places like TX title EVERYTHING.
to answer your question it is only on the trade difference, same as vehicles.
I’ve bought 2 new boats in Arkansas. Both times had to pay sales tax on full purchase price of boat and separate sales tax on the trailer. Unless it’s changed in the last few years, There is not a trade difference on boats like their is on vehicles. On used boats, I have not had to pay any sales tax.
never bought a new 1 and will never if sales tax is involved.
I would call a dealer to confirm and the DMV.
Arkansas does not have Boats under registration and trade differences. The entire amount IS taxable and only the city or county are limited to $25 each maximum. The trailers are taxable above $4,000.
Not to beat a dead or dying horse but this is what the DMV in Faulkner Co (501-329-2601) told me this am. I don’t know why it would be different from city to city or county to county but,
New/Used boats and motors are registered together and the trailer (which is titled) is separate and that is the taxable part (over $4k) no matter new or used. You also need an actual printed photo (required by AGFC) of the boat hull #.
That is a reasonably accurate explanation.
New boats are taxable, used boats are not unless they are resold through a retailer. Which to us is not valid as they are still used, thus not taxable.
If you buy a used boat registered in Arkansas with the taxes paid you do not have to pay them again.
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