Daily Tax Report: State

Arkansas Appeals Office Finds Finance Department Correctly Assessed Sales Tax on Vehicle, Repossession No Defense

Sept. 10, 2019, 9:31 PM

The Arkansas Office of Hearings and Appeals (OHA) Sept. 9 sustained the Department of Finance and Administration’s (DFA) motor vehicle sales and use tax assessment. Taxpayer purchased a vehicle and failed to timely register the vehicle and pay the tax. The DFA issued a gross receipts tax assessment. Taxpayer protested, contending that the vehicle was returned to the seller and a new vehicle was purchased from a different seller for which tax was paid. The OHA found that: 1) Taxpayer took possession of the vehicle; 2) the possession of the vehicle triggered the statutory tax liability; 3) Taxpayer didn’t establish...

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