Arkansas Sales and Use Taxes Motor vehicle sales tax credit disallowed

A taxpayer was not entitled to a sales tax credit against the sales price of a new motor vehicle as the title of the used motor vehicle was not in the taxpayer’s name, but in another entity’s name. Ark. Regs. § GR-12.1(C)(1) provides that the person or entity claiming the credit must be the same person or entity that sold the used vehicle, and it is well settled that a company is a separate and distinct legal entity from an individual. (Arkansas Administrative Hearing Decision, Dkt. No. 22-510, 06/06/2022.)