Arkansas Code § 26-52-515 - Refund of Sales Tax on Vehicles Returned As Defective

(a) The Director of the Department of Finance and Administration shall refund to a manufacturer any state and local sales or use tax which the manufacturer refunded to the consumer, lessee, or lessor pursuant to the Arkansas New Motor Vehicle Quality Assurance Act, § 4-90-401 et seq., or other defective vehicle buy-back agreement, if the manufacturer provides to the Department of Finance and Administration:

(1) A written request for a refund in accordance with § 26-18-507;

(2) Evidence that the sales tax was paid when the vehicle was registered;

(3) Assignment of the tax refund by the taxpayer;

(4) Proof that the manufacturer refunded the sales tax to the consumer, lessee, or lessor; and

(5) Such other information as shall be required by the director.

(b) Claims for refund of sales or use tax under this section shall be subject to the Arkansas Tax Procedure Act, § 26-18-101 et seq. Any claim must be made in writing and filed within three (3) years from the date the vehicle was first registered.

(c) (1) When a consumer has tendered a trade-in vehicle toward the purchase of the vehicle which is refunded under the Arkansas New Motor Vehicle Quality Assurance Act, § 4-90-401 et seq., or other defective vehicle buy-back agreement, the consumer may apply to the director for a voucher in the amount of the trade-in vehicle's consideration.

(2) The director shall prescribe the forms and other information necessary to issue the voucher.

(3) In calculating the sales tax due upon registration of a subsequent replacement vehicle, the voucher shall be used to reduce the sales price of the subsequent replacement vehicle.

(4) The voucher shall be valid for six (6) months from the date of issuance and may only be used by the consumer to whom it was issued.

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Last modified: November 15, 2016