Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Rule 006.05.97-004 - Gross Receipts Regulation - GR-12 Used Motor Vehicles Registered by Vehicle Dealers

Current through Register Vol. 49, No. 6, June, 2024
This regulation is necessary in order to properly implement and
				administer Act 998 of 1997 which becomes effective on August 1, 1997, and to
				administer Ark. Code Ann. §
								26-52-510(f).
Arkansas Gross Receipts Regulation GR-12 is amended to add a
				new section to read as follows:
G.
			 USED MOTOR VEHICLES REGISTERED BY VEHICLE DEALERS
1. Act 998 of 1997 prohibits used motor
			 vehicle dealers from assigning a motor vehicle using the Manufacturer's
			 Statement of Origin (MSO). Used vehicle dealers are required to apply for title
			 and registration to the vehicle before it may be transferred.
2. Ark. Code Ann. §
									26-52-510(f)
			 permits any motor vehicle dealer who has purchased a used motor vehicle for
			 resale to register the vehicle for the sole purpose of obtaining a certificate
			 of title to the vehicle without payment of gross receipts tax. No license plate
			 is issued with this registration and the vehicle may not be operated upon the
			 highway without a dealer's plate.
3. A used motor vehicle dealer may apply for
			 title and registration to a vehicle which is assigned to the dealer on the
			 vehicle's MSO without payment of gross receipts tax provided that §
									26-52-510(f)
			 otherwise applies to the transaction.
4. "Used motor vehicle" is defined as any
			 motor vehicle which has previously been sold, bargained, exchanged, given away
			 or the title thereto transferred from the person or corporation who first took
			 title from the manufacturer, importer, dealer, or agent of the manufacturer or
			 importer, or that is so used as to have become which is commonly known as a
			 secondhand or previously owned motor vehicle. In the event of a transfer
			 reflected on the statement of origin (MSO) from the original franchise dealer
			 to any other dealer, individual, or corporation other than a franchise dealer
			 of the same make of vehicle, the vehicle shall be considered a used motor
			 vehicle.
FINDING OF IMMINENT PERIL AND STATEMENT OF
				REASONS
During the 81st General Assembly, the Arkansas Legislature
				passed Act 998 of 1997 prohibiting used motor vehicle dealers from assigning a
				motor vehicle using the Manufacturer's Statement of Origin (MSO). The law
				states that used vehicle dealers are required to apply for title and
				registration to the vehicle before it may be transferred. Arkansas law
				typically requires that gross receipts or use tax be paid when a motor vehicle
				is titled or registered in this state. Ark. Code Ann. §
										26-52-510(f)
				permits any motor vehicle dealer who has purchased a used motor vehicle for
				resale to register the vehicle for the sole purpose of obtaining a certificate
				of title to the vehicle without payment of gross receipts tax.
Without this regulation, there will be confusion among car
				dealers attempting to comply with Act 998 because they will be unsure whether
				sales tax is due on the motor vehicles in question. This regulation is needed
				to prevent confusion over the application of this Act to transactions where
				motor vehicles are obtained by a used car dealer with an MSO. The provisions of
				this regulation will become effective on August 1, 1997.