(a)
(1) In addition to the gross receipts tax levied by the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., and the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq., there is levied a long-term rental vehicle tax at the rate of one and five-tenths percent (1.5%) on the gross receipts or gross proceeds derived from a rental of a motor vehicle required to be licensed and that is leased for a period of thirty (30) days or more.
(2) The gross receipts or gross proceeds derived from the rental described in subdivision (a)(1) of this section are taxable regardless of whether the gross receipts tax levied by the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., or the compensating use tax levied by the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq., was paid at the time of registration.
(b) If the Chief Fiscal Officer of the State certifies that three percent (3%) or more of all new motor vehicles registered in Arkansas during a calendar year are leased vehicles based on information and statistics from a reliable source, such as R.L. Polk & Co., then the long-term rental vehicle tax shall expire on June 30 of the fiscal year following the calendar year for which the certification is made.
(c) The long-term rental vehicle tax shall be remitted to the Director of the Department of Finance and Administration and shall be deposited into the State Treasury as general revenues.
(d) The long-term rental vehicle tax does not apply to:
(1) A diesel truck rented or leased for commercial shipping;
(2) Farm machinery or farm equipment rented or leased for a commercial purpose; or
(3) A gasoline-powered or diesel-powered truck rented or leased for residential moving or shipping.
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