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Daily Tax Report: State

Arkansas Appeals Office Finds Sales Tax Liability on Motor Vehicle Not Extinguished by Repossession

Dec. 2, 2019, 10:43 PM

The Arkansas Office of Hearings and Appeals (OHA) Nov. 27 found Taxpayer liable for sales tax on a motor vehicle purchase, sustaining the Department of Finance and Administration’s (DFA) assessment. The DFA determined Taxpayer didn’t register the vehicle or pay the sales tax within 30 days as required by law. Taxpayer argued that the vehicle was voluntarily repossessed. Upon review, the OHA found that: 1) voluntary or involuntary repossession of a vehicle does not extinguish sales tax liability; 2) there was no evidence the sale was rescinded; 3) a 10 percent penalty was properly applied for failure to register the...

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