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ArkansasHB18072025 Regular SessionHouseWALLET

TO AMEND THE SALES TAX EXEMPTION FOR AIRCRAFT HELD FOR RESALE AND USED FOR RENTAL OR CHARTER; AND TO CLARIFY THE PERSONS ELIGIBLE FOR THE SALES TAX EXEMPTION FOR AIRCRAFT HELD FOR RESALE AND USED FOR RENTAL OR CHARTER.

Sponsored By: Les D. Eaves (Republican), John Payton (Republican)

Enacted

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Aircraft sellers get broader tax break

Arkansas aircraft sellers, including individuals, qualify for a sales or use tax exemption on aircraft bought for resale. Sellers must hold a retail sales tax permit and keep aircraft in stock mainly to profit from resale to customers. They can rent or charter these aircraft tax-free for up to one year from purchase. The period extends to up to two years for aircraft needing substantial changes or refurbishing before resale. These changes take effect on the first day of the calendar quarter after the act’s effective date.

Aircraft rental tax break adds revenue test

Aircraft acquired for rental or leasing in normal business qualify for the tax exemption only with enough annual rental revenue. Annual gross rental or lease revenue must equal at least 7.5% of the aircraft’s net purchase price. That price includes any trade or exchange value but excludes sales commissions paid to a third party. Related-party revenue counts, and the provider’s relationship with the renter or lessee does not bar the exemption. The Department of Finance and Administration must set rules for measuring annual gross lease revenue. These changes take effect on the first day of the calendar quarter after the act’s effective date.

Sponsors & Cosponsors

Sponsors

  • Les D. Eaves

    Republican • House

  • John Payton

    Republican • Senate

Cosponsors

  • Andrew Collins

    Democratic • House

  • Dave Wallace

    Republican • Senate

  • Robin Lundstrum

    Republican • House

  • Matt Brown

    Republican • House

  • Stephen Magie

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 122 • No: 2

Senate vote • 4/14/2025

Senate Vote - Monday, April 14, 2025 3:12:55 PM

Yes: 33 • No: 1

House vote • 4/8/2025

House Vote - Tuesday, April 8, 2025 2:28:47 PM

Yes: 89 • No: 1 • Other: 1

Actions Timeline

  1. Notification that HB1807 is now Act 879

    4/17/2025House

  2. Correctly enrolled and ordered transmitted to the Governor's Office.

    4/15/2025House

  3. TO BE ENROLLED

    4/14/2025House

  4. Returned from the Senate as passed.

    4/14/2025House

  5. Returned to the House as passed.

    4/14/2025Senate

  6. Read the third time and passed.

    4/14/2025Senate

  7. Returned by the Committee, with the recommendation that it Do Pass

    4/10/2025Senate

  8. Read first time, rules suspended, read second time, referred to REVENUE & TAX - SENATE

    4/8/2025Senate

  9. Received from the House.

    4/8/2025Senate

  10. Read the third time and passed and ordered transmitted to the Senate.

    4/8/2025House

  11. REPORTED CORRECTLY ENGROSSED

    4/7/2025House

  12. Amendment No. 1 read and adopted and the bill ordered engrossed.

    4/7/2025House

  13. Placed on second reading for the purpose of amendment.

    4/7/2025House

  14. Returned by the Committee with the recommendation that it do pass as amended 1

    4/3/2025House

  15. Read the first time, rules suspended, read the second time and referred to the Committee on REVENUE & TAXATION- HOUSE

    3/17/2025House

  16. Filed

    3/17/2025House

Bill Text

  • HB1807 - Introduced

    3/17/2025

    PDF

  • Act Version

    PDF

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