Senate committee defeats bill to increase used car sales tax exemption


The Arkansas Senate revenue and taxation committee has failed to recommend HB1342 by Rep. John Payton of Wilburn to increase the sales tax exemption on a used car from $4,000 to $7,500.

Arkansas Times reports the bill had near universal support in the House and opposition to the bill in the Senate led to a House insurrection Tuesday. The result was the House failing to approve some routine appropriation bills to send a message to the Senate. Rep. Payton’s bill had languished on the Senate calendar for more than a week.

Sen. Jonathan Dismang, chair of the revenue and taxation committee, opposed the bill. Dismang says the $12 million loss of revenue wasn’t budgeted, and he had other priorities if the state was going to pursue further tax reductions. Sens. Jason Rapert and Trent Garner supported the law change, but Dismang ruled Wednesday the motion for a do-pass failed on the voice vote, in which a scattering of yeas and nays were heard. It takes five votes for a bill to clear a Senate committee.

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