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:
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.
006.05.97 Ark. Code R. 004