Arkansas tax tidbit: damaged car credit

Although its nickname is The Natural State, I'm sure Arkansas residents prefer to see less of Mother Nature when she's in a really foul mood.

Unfortunately, the state has to cope with plenty of natural disasters each year.

So it's no surprise that Arkansas tax laws take such catastrophes into account.

Since its enactment on Aug. 1, 1997, the state has allowed Arkansas taxpayers to claim a sales tax credit for purchase of a vehicle to replace one destroyed by a natural disaster. Specifically, Act 1348 says:

To qualify, a consumer must have paid sales tax on a motor vehicle (trailers are not eligible) within the last one hundred and eighty (180) days and the motor vehicle is destroyed or damaged by some catastrophic event resulting from a natural cause to the extent that the value is less than thirty percent (30%) of its retail value, as found in the N.A.D.A. Official Price Guide. This sales tax credit shall be used only to reduce any sales and use taxes due upon registration of a subsequent replacement vehicle.

Residents who suffer such losses have a year to make their claims and the sales tax credit voucher is valid for six months after it's issued.

If you decide you don't want to worry about another car getting carried away by a tornado or other act of God, sorry. You can't give your voucher to anyone else and, says Arkansas the Department of Finance and Administration (DFA), "in no event shall a cash refund be given for the sales tax credit voucher."

Still, getting a sales-tax-free replacement auto is a pretty nice deal. And be sure to check the DFA vehicle licensing page for a specialty plate for your new wheels.

Tax trip around the United States: This is part of our series highlighting tax information from the 50 U.S. states and our nation's capital.

The State Tax Departments page provides links to official state and District of Columbia revenue Web sites so that you can find out more about your home's tax laws and filing requirements. You also can check out info on other locales in our Complete menu of tasty state tax tidbits.

As the 2010 tax season progresses, a different state will be featured each day as noted in Don't forget your state taxes! Check back to see what tax tidbit we share about your home state!

Related posts:

• State Tax Departments
• State Tax Tidbits
• Don't forget your state taxes!
• Tax relief for disaster victims
• Alabama tax tidbit
• Arizona tax tidbit
  
• 9 states of no-tax note ... sort of

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Comments

[Kay]

Is that really you Chuck, or is it Mr. Huckabee?! ;-) Either way, thanks!

[Chuck Norris]

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