Arkansas—Sales and Use Tax: Tax Assessment and Penalty on Purchase of Vehicle Sustained
AR: Arkansas taxpayers’ protest against the sales tax assessment on their purchase of a vehicle was denied for failure to prove entitlement to the motor vehicle exemption for disabled veterans. The taxpayers claimed an exemption from the payment of sales tax for their purchase of the vehicle available to disabled veterans who have received financial assistance from the Veterans Administration (VA). The Arkansas Office of Hearings and Appeals noted that the taxpayer was entitled to a disabled veterans property tax exemption but not to a sales tax exemption. Further, the taxpayer failed to establish that the motor vehicle was purchased with the financial assistance of the United States Department of Veterans Affairs. Accordingly, the assessment of tax and penalty on the purchase of the vehicle was sustained. Administrative Decision No. 21-335, Arkansas Department of Finance and Administration Office of Hearings & Appeals, May 20, 2021.
About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon LLC – Sales Tax Experts specializes in sales/use tax refund recovery and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At Davis Davis & Harmon, LLC we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.