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.
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