Arkansas Code § 26-52-410 - Motor Vehicles Sold to Political Subdivisions and Schools

(a) No tax shall be levied or collected upon gross receipts derived from the sale of motor vehicles to municipalities and counties or to state-supported colleges and universities or to public school districts in this state.

(b) No tax shall be levied or collected upon the gross receipts derived from the sale of school buses to school districts of Arkansas.

(c) No tax shall be levied or collected upon the gross receipts derived from the sale of school buses if at the time of sale the school bus purchaser has contracted with an Arkansas school district to provide school bus service for the school district, the school buses purchased are used exclusively in providing such service, and the obligation to pay any taxes related to the school buses is contractually assumed by the school district. This exemption shall apply only to school buses which are equipped in accordance with ยง 6-19-117(a)-(d).

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Last modified: November 15, 2016