This story is a part of The Article, your guide to Arkansas news and culture, presented by the Democrat-Gazette. Sign up for The Article's twice-weekly newsletter here.
A vehicle in Arkansas must be registered within 30 days of purchase or of moving to the state. To help, here are the basics, according to experts from the state Department of Finance and Administration.
Documents
To register the vehicle, a driver will need to have a handful of documents:
Title or manufacturer’s statement of origin: A title is the document stating who owns a used car. When buying a vehicle, Marla McHughes, assistant administrator of drivers services with the finance department, said it is important to fill out a title correctly.
The seller will sign in the space allotted for a seller, and the buyer signs in the space allotted for the buyer — if the buyer is using a loan to purchase the car, the lending institution will also be listed. The title will also include a spot for the odometer reading, and McHughes said to verify what is written matches what is shown on the odometer.
A manufacturer’s statement of origin is what accompanies a new car, and McHughes said it can be thought of as like a car’s birth certificate. The dealer should give this document to the buyer, and it will include details on the manufacturing of the vehicle.
Bill of sale: Charlie Collins, commissioner of revenue with the finance department, said a bill of sale is similar to the receipt consumers might get at the grocery store — it’s a document stating an individual paid for something. A dealership should have this readily available, Collins said.
If a car is bought from an individual, McHughes said many titles have a section on the back that can function as a bill of sale. Collins also said a buyer could search online for standard bill of sale templates, print one and have the seller sign it.
Lien contracts: If a driver took out a loan to buy the vehicle, they will need to bring a copy of the lien contract.
Personal property assessment: Counties in Arkansas tax vehicles as personal property.
Any vehicle owner needs to contact their county assessor’s office — Collins said counties may allow people to do this online or over the phone, as well as in-person — and the office will ask for information about the vehicle to determine how much the owner owes in taxes.
No taxes are due immediately, Collins said, but a bill will be sent to the owner at some point in the coming months.
At the time of assessment, a driver should receive a document verifying the personal property assessment has been completed.
Personal property tax receipt: Collins said most counties have set up the assessment process to also readily provide a personal property tax receipt.
The receipt, often a stamp, is used to verify that a driver owes no personal property taxes on the vehicle. Again, because no taxes are due at the time of the assessment, a driver will be able to get this approval on a new or new-to-you vehicle without immediately paying anything.
Proof of insurance: Drivers will need a document from an insurance company proving they have automobile insurance.
Registration
Before a new or newly purchased vehicle can be registered, the owner must pay the sales tax on it.
This can be done at the time of registration, either online at https://mydmv.arkansas.gov/ or in-person at a state revenue office.
If the driver takes more than 30 days after the purchase of the vehicle to register or pay the tax, they will owe a 10% late fee — for example, on a car whose sales tax was $1,000, the owner would have to pay $1,100.
If a driver sold another vehicle within 45 days of the purchase of the new vehicle, he or she can get a credit on the sales tax. Collins said, for example, if someone sold a car for $5,000 shortly before buying a $20,000 vehicle, the sales tax will be assessed on the difference — in this case, $15,000.
If a vehicle is sold within 45 days after the purchase of a new vehicle, a driver can get a rebate on the sales tax paid.
After registration, a driver will get a license plate and a sticker to put on the plate to prove the vehicle is registered.
Renewal
Drivers in Arkansas must renew their vehicle’s registration every year.
To do that, a driver must also go back to the county assessor’s office (or its website) and get the vehicle reassessed every year.
For vehicles not newly purchased or relocated, counties only do assessments from Jan. 1-May 31, Collins said, no matter what month the vehicle was assessed in the first time.
If a driver misses the Jan. 1-May 31 window, he or she can still get the vehicle reassessed during the rest of the year, but the driver will owe a 10% late fee on the personal property tax amount for the vehicle.
To renew the registration, a driver will also need to have paid all personal property taxes on the vehicle from previous years and have proof of that via a personal property tax receipt.