Arkansas Court of Appeals Finds Automobile Insurer Not Liable to Pay Sales Taxes to Taxpayers for Total-Loss Vehicle

The Arkansas Court of Appeals Sept. 23 affirmed the circuit court’s decision that the automobile insurer wasn’t liable to pay sales and use taxes and title fees to Taxpayers for a vehicle that was a total loss after a wreck. Taxpayers bought a new vehicle and the insurer insured it. After the wreck, Taxpayers claimed the insurer’s insurance policy. The insurer paid the tax and fee amounts to a company that loaned Taxpayers the money to buy the vehicle. Taxpayers sued the insurer and demanded reimbursement. The circuit court granted the insurer’s summary judgment. The appeals court found: 1) the ...