Arkansas Supreme Court Rules Sales Tax Owed on Vehicles Temporarily Used by Employees

• Arkansas Supreme Court ruled that vehicle dealers owed sales tax on vehicles used by employees and relatives before being sold
• Issue was whether use by individuals constituted withdrawals from stock, requiring sales tax payment
• Court rejected dealers’ argument that no sale had occurred, stating sales tax required on vehicle use
• Plain language of statute mandated sales tax payment on vehicle use

Source: kpmg.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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