# Arkansas SB638: TO AMEND THE LAW CONCERNING THE COLLECTION OF SALES AND USE TAX ON THE SALE OF A NEW OR USED MOTORBOAT; AND TO PROVIDE FOR THE DIRECT PAYMENT OF SALES AND USE TAX ON A MOTORBOAT SOLD BY A MOTORBOAT DEALER. Arkansas SB638, TO AMEND THE LAW CONCERNING THE COLLECTION OF SALES AND USE TAX ON THE SALE OF A NEW OR USED MOTORBOAT; AND TO PROVIDE FOR THE DIRECT PAYMENT OF SALES AND USE TAX ON A MOTORBOAT SOLD BY A MOTORBOAT DEALER., is a 2025 Regular Session Senate bill sponsored by Justin Boyd (Republican), Lee Johnson (Republican); status enacted, last action 2025-04-23 (Notification that SB638 is now Act 1019); PRIA reads it as touching household money (as of 2026-10-16). - Canonical: https://policyrisk.com/state-bill/AR-SB638-2025 - As of: 2026-10-16 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Arkansas SB638 - State: Arkansas - Session: 2025 Regular Session - Title: TO AMEND THE LAW CONCERNING THE COLLECTION OF SALES AND USE TAX ON THE SALE OF A NEW OR USED MOTORBOAT; AND TO PROVIDE FOR THE DIRECT PAYMENT OF SALES AND USE TAX ON A MOTORBOAT SOLD BY A MOTORBOAT DEALER. - Status: enacted - Chamber: Senate - Introduced: 2025-04-09 - Last action: 2025-04-23, Notification that SB638 is now Act 1019 - Sponsors: Justin Boyd (Republican), Lee Johnson (Republican) - Cosponsors: 1 - Touches household money: yes - Roll calls: 2 (93 yes, 23 no in all) - Economic provisions PRIA read: 6 ## Summary No summary available. ## Bill overview: provisions PRIA read - Boat trade-ins lower buyers’ taxable price: benefit, medium. When you trade in a used motorboat, its trade-in credit reduces the amount taxed on your dealer purchase. Tax applies to the purchase amount minus that credit. This covers new and used boats bought from Arkansas dealers or out-of-state dealers. The rule begins on the first day of the calendar quart… - Boat dealers get resale parts tax relief: benefit, medium. Motorboat dealers pay no Arkansas gross receipts tax on parts and accessories bought for resale. The exemption also covers parts used to recondition or rebuild used motorboats intended for resale. Dealers must meet the dealer-resale requirements in § 26-52-401(12)(A) and applicable rules. The exemp… - Boat buyers face stricter tax calculations: cost, medium. A used motorboat’s taxable value is presumed to be the higher of its documented price or published average loan value. That loan value comes from a current, industry-accepted publication. If it is higher, buyers must prove their stated price to Arkansas’s finance secretary; a rejected price means t… - Boat buyers pay tax at registration: cost, low. For dealer-bought motorboats that require Arkansas registration, buyers pay state tax directly to the Department of Finance and Administration. Arkansas dealer purchases carry sales tax; out-of-state dealer purchases carry use tax, and dealers cannot collect these taxes. Payment is due on or before… - Dealers owe tax on service boats: cost, low. Dealers taking new inventory boats for service use must obtain registration and title and pay tax on the listed retail price. Service boats are driven only by dealership employees to transport customers, parts, or equipment—not for rentals, demonstrations, or personal use. When a used service boat… - Dealer boat titles skip upfront tax: mixed, low. Dealers with a permit under § 27-101-302(5) can obtain a used boat’s title without upfront sales or use tax. They must pay applicable fees and apply for a certificate of number solely to obtain title. A sale by the original franchise dealer to anyone other than a same-make franchise dealer remains… ## Sponsors and cosponsors - Sponsor: Justin Boyd (Republican), Senate - Sponsor: Lee Johnson (Republican), House - Cosponsor: Dolly Henley (Republican), House ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-04-16 | House | House Vote - Wednesday, April 16, 2025 10:52:26 AM | pass | 58 | 23 | 10 | | 2025-04-10 | Senate | Senate Vote - Thursday, April 10, 2025 3:31:37 PM | pass | 35 | 0 | | ## Actions (16) - 2025-04-23: Notification that SB638 is now Act 1019 (Senate) - 2025-04-16: DELIVERED TO GOVERNOR. (Senate) - 2025-04-16: Reported correctly enrolled and ordered delivered to the Governor. (Senate) - 2025-04-16: ORDERED ENROLLED (Senate) - 2025-04-16: Returned from the House as passed. (Senate) - 2025-04-16: Returned to the Senate as passed. (House) - 2025-04-16: Read the third time and passed and ordered transmitted to the Senate. (House) - 2025-04-14: Returned by the Committee Do Pass (House) - 2025-04-10: Read the first time, rules suspended, read the second time and referred to the Committee on REVENUE & TAXATION- HOUSE (House) - 2025-04-10: RECEIVED FROM THE SENATE (House) - 2025-04-10: Ordered immediately transmitted to the House. (Senate) - 2025-04-10: Read the third time and passed. (Senate) - 2025-04-10: Rules suspended. (Senate) - 2025-04-10: Returned by the Committee, with the recommendation that it Do Pass (Senate) - 2025-04-09: Read first time, rules suspended, read second time, referred to REVENUE & TAX - SENATE (Senate) - 2025-04-09: Filed (Senate) ## Bill text - SB638 - Introduced, 2025-04-09: [PDF](https://www.arkleg.state.ar.us/Home/FTPDocument?path=%2FBills%2F2025R%2FPublic%2FSB638.pdf) - Act Version: [PDF](https://www.arkleg.state.ar.us/Acts/FTPDocument?path=%2FACTS%2F2025R%2FPublic%2F&file=1019.pdf&ddBienniumSession=2025%2F2025R) ## Related bills - HB1265: AN ACT FOR THE UNIVERSITY OF ARKANSAS AT LITTLE ROCK APPROPRIATION FOR THE 2025-2026 FISCAL YEAR. (enacted) - HR1012: TO AMEND THE RULES OF THE HOUSE OF REPRESENTATIVES OF THE NINETY-FIFTH GENERAL ASSEMBLY; TO REQUIRE THAT A MEMBER OF THE HOUSE OF REPRESENTATIVES BE SELECTED A… (failed) - HB1695: TO CLARIFY THE FORECLOSURE PROCESS FOR PROPERTY SUBJECT TO A MUNICIPAL LIEN; TO ALLOW A MUNICIPALITY TO PETITION TO SET ASIDE THE SALE OF PROPERTY TO CERTAIN P… (failed) - SB440: TO AMEND THE LAW CONCERNING EMBALMERS AND FUNERAL DIRECTORS; TO REGULATE THE USE OF ALKALINE HYDROLYSIS; AND TO REGULATE ALKALINE HYDROLYSIS FACILITIES. (failed) - HB1686: TO AMEND THE LAW CONCERNING LICENSES TO CARRY CONCEALED HANDGUNS. (failed) - HB1237: TO PROHIBIT MEDICAL PROFESSIONALS FROM SOLICITING INJURED INDIVIDUALS; AND TO SET PENALTIES FOR A VIOLATION OF THE PROHIBITION OF SOLICITATION OF INJURED INDIV… (failed) ## Sources - [SB638 - Introduced (PDF)](https://www.arkleg.state.ar.us/Home/FTPDocument?path=%2FBills%2F2025R%2FPublic%2FSB638.pdf) - [Act Version (PDF)](https://www.arkleg.state.ar.us/Acts/FTPDocument?path=%2FACTS%2F2025R%2FPublic%2F&file=1019.pdf&ddBienniumSession=2025%2F2025R) ## Related - [HB1265: AN ACT FOR THE UNIVERSITY OF ARKANSAS AT LITTLE ROCK APPROPRIATION FOR THE 2025…](https://policyrisk.com/state-bill/AR-HB1265-2025) - [HR1012: TO AMEND THE RULES OF THE HOUSE OF REPRESENTATIVES OF THE NINETY-FIFTH GENERAL…](https://policyrisk.com/state-bill/AR-HR1012-2025) - [HB1695: TO CLARIFY THE FORECLOSURE PROCESS FOR PROPERTY SUBJECT TO A MUNICIPAL LIEN; TO…](https://policyrisk.com/state-bill/AR-HB1695-2025) - [SB440: TO AMEND THE LAW CONCERNING EMBALMERS AND FUNERAL DIRECTORS; TO REGULATE THE US…](https://policyrisk.com/state-bill/AR-SB440-2025) - [HB1686: TO AMEND THE LAW CONCERNING LICENSES TO CARRY CONCEALED HANDGUNS.](https://policyrisk.com/state-bill/AR-HB1686-2025) - [HB1237: TO PROHIBIT MEDICAL PROFESSIONALS FROM SOLICITING INJURED INDIVIDUALS; AND TO S…](https://policyrisk.com/state-bill/AR-HB1237-2025) - [Arkansas bills](https://policyrisk.com/states/arkansas/bills) - [Arkansas state hub](https://policyrisk.com/states/arkansas) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/AR-SB638-2025 (as of 2026-10-16).