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Author Topic: Arkansas Vehicle Sales Tax  (Read 8351 times)

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Eric_Mullins34

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Arkansas Vehicle Sales Tax
« on: February 17, 2008, 07:43:37 pm »
This may be a dumb question but before I go out and buy this truck I am about to buy I would figure I'd ask, and couldn't find any better place..

I know Sales Tax, depending on where you are, is around 8%.  Is this the same for vehicles, and if not what is the rate??

Offline Drama Mama ™

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Re: Arkansas Vehicle Sales Tax
« Reply #1 on: February 17, 2008, 08:02:47 pm »
Here's the tax rate from the ADFA website. truck or car.... doesn't matter. it's 6% of the sales price or trade difference.  It's basically gonna cost ya 6% plus a $25 local tax fee plus the cost of your tag/plate.  Hope that helps ya.

http://www.arkansas.gov/dfa/motor_vehicle/mv_tagrenew.html

Sales tax, registration and title fees: The state sales and use tax rate is 6% & 7% for Texarkana residents, of the taxable price of motor vehicles, trailers and semi-trailers with a gross purchase price of $2500.00 or greater. Tax is computed on the total delivery price including rebate, freight charges and extra equipment. Federal Excise Tax is not included. Extended warranties are taxable whether or not the vehicle is taxable.

Local taxes may be due depending on your residence. Each local tax will not exceed $25.00 for each 1% of tax due. For a list of cities and counties with local taxes and their rates visit the web page
« Last Edit: February 17, 2008, 08:06:05 pm by Drama Mama™ »

30kfeet

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Re: Arkansas Vehicle Sales Tax
« Reply #2 on: February 17, 2008, 11:03:50 pm »
Make a call to your local Revenue office.  They should be able to tell you in advance exactly what your taxes will be.  If your dealer says "Sales Tax Paid", they are usually only talking about the state sales tax.   If you want the dealer to pay all your taxes, make sure you get that in writing.

powerlifter90

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Re: Arkansas Vehicle Sales Tax
« Reply #3 on: February 18, 2008, 08:21:56 am »
If you are smart you'll have the buyer state that you paid less than $2500 for the vehicle so you won't pay sales tax......

Offline WCD

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Re: Arkansas Vehicle Sales Tax
« Reply #4 on: February 19, 2008, 03:56:50 pm »
If you are smart you'll have the buyer state that you paid less than $2500 for the vehicle so you won't pay sales tax......

I know you probably were joking but................

That is illegal, unethical and not moral. Somehow, that speaks volumes. I would rather pay the tax (and I don't like to pay taxes) than sell my integrity for a dollar(s).

WCD ;D

Throwback1

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Re: Arkansas Vehicle Sales Tax
« Reply #5 on: February 19, 2008, 04:14:51 pm »
If you trade a vehicle in that you licensed and paid tax on previously that total will be deducted from you tax due, to-wit:  Paid 10,000 for a car in 2004
       Trade it in and buy a car for 20,000 in 2008.

Will pay 6% tax on 10,000, the difference between 20 and 10.

Offline True Fan

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Re: Arkansas Vehicle Sales Tax
« Reply #6 on: February 19, 2008, 05:12:28 pm »
TB1, you may be off a little bit. It's on the trade difference. If that 04 car is still worth 10,000 and you give them the car and 10,000, your example works. If the car is worth 3,000 now, and you pay 17,000, the tax is on the 17,000. The trade difference is what's taxible.

Throwback1

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Re: Arkansas Vehicle Sales Tax
« Reply #7 on: February 19, 2008, 05:46:03 pm »
Then I've been getting pretty good deals...lol..not saying your wrong, but in the past every time I've done that, they've subtracted the purchase price of the first from the 2nd, but it's been about 3 years..maybe it changed, or just maybe I've been lucky.

Offline Drama Mama ™

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Re: Arkansas Vehicle Sales Tax
« Reply #8 on: February 19, 2008, 10:36:21 pm »
Then I've been getting pretty good deals...lol..not saying your wrong, but in the past every time I've done that, they've subtracted the purchase price of the first from the 2nd, but it's been about 3 years..maybe it changed, or just maybe I've been lucky.
New car purchase less trade in value = what you're gonna pay sales tax on.

Example:

New Car =                                         $25,000
less trade in VALUE
(value being the key word here folks )        5,000

Net trade difference                            $20,000
(this is what your're paying tax on)


$20,000  x 6%                                 = $1200
(Example harrison City tax 7.25%)             145     
City or Co tax depending
on where you reside
(in or out of the
city limits)


license and registration fee.                       35.00

                                            total         $1380 




Throwback1

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Re: Arkansas Vehicle Sales Tax
« Reply #9 on: February 19, 2008, 10:40:12 pm »
you're right..as usual...value equals trade in amount, right?...ok...got it..thanks.

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Re: Arkansas Vehicle Sales Tax
« Reply #10 on: February 20, 2008, 10:16:43 am »
you're right..as usual...value equals trade in amount, right?...ok...got it..thanks.
LOL ! It's hard being right all the time ;D  The only thing I may be off on is that local/county tax thing.  I'm out of the city limits so I pay a different percentage .  It's the tax rate X the sales price or trade difference.  Not to exceed $25.00 per  each 1% of tax paid.  That messes me up. 

Offline True Fan

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Re: Arkansas Vehicle Sales Tax
« Reply #11 on: February 20, 2008, 11:18:31 am »
I sold cars for a while. There is only one number on the buyers order that matters. The bottom line. How many dollars are you paying, either cash or finance. Too many people get hung up on the price of the car or what they are getting for their trade. That trade difference is what you pay, and what you pay the tax on.

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Re: Arkansas Vehicle Sales Tax
« Reply #12 on: February 20, 2008, 03:37:48 pm »
Some people don't realize that paying the sales tax on the difference is not only on trades.  If you can produce a bill of sale that you sold your old vehicle outright (like in the paper) you can subtract that amount from your new vehicle.

Throwback1

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Re: Arkansas Vehicle Sales Tax
« Reply #13 on: February 20, 2008, 03:54:13 pm »
ty

 

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