Vehicle Sales tax in Arkansas is calculated differently in each County or City. There is a base rate of 6% plus whatever your city or county adds onto it. When purchasing a new vehicle and you get these large rebates and incentives, you have to also pay taxes on them, Say you are purchasing a $44,000 vehicle and the dealership is offering a $5, 000 rebate and the manufacturer is offering a $5,000 rebate saving you $10,000 off the sales price. When you get ready to license that vehicle, you pay your tax rate on that $10,000.
Arkansas also has a "No Sales Tax" on a used vehicle if the purchase price was $4,000 or less, thats right, NO sales tax. But if you buy a $5,000 vehicle, you pay sales tax on the whole amount, you don't get a credit of the $4,000.
Arkansas also allows you to have credit on on sales within a 45 day window of the sale of a vehicle. If I sell a vehicle for $20,000 and I purchase another for $28,000, I get credit for the $20,000 amount as long as it was within 45 days. If you buy one then sell, you can request a sales tax credit, again, has to be done within the 45 days. Now on this topic, I personally just went through something that I don't think is fair but had to live with it. I sold a higher priced vehicle and purchased two other to replace it (not that ot matters but it was a new economical car and a used truck for the farm) that was lower than the price of the one I sold. Come to find out, if I had purchased two vehicles from a dealer and sold that dealer my higher price vehicle, I would have been able to use the tax credit on both of the vehicles reulting in NO taxes. Since I used a "private" seller to buy one, I cold only use the credit towrds just one of the vehicles I purchased, which was the higher price one. This little fiasco cost me nearly $400 extra dollars.
I hope this was educational.
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