Recent Changes in the Law

Did you know about these recent changes in the law?

 

Effective January 1, 2022

Act 753: Extends the period a commercial drivers license (CDL) is valid from the current period of four years to a period of five years. Increases the current CDL fee of $40 for a four-year license to $50 for a five- year licenses.

Act 257: Authorize the issuance of a Drivers License or Identification Card without a Photograph in certain circumstances and for other purposes: DFA currently will issue a Drivers License or Identification Card without photograph if the licensee objects to having their photo taken on grounds of a sincerely religious belief. HB1244 would require an applicant seeking license or identification card without a photograph to be 15 years of age or older and provide a completed Internal Revenue Service (IRS) For 4029 or signed affidavit attesting to his or her sincerely held religious belief that prohibits the individual from having his or her photograph taken. A license issued without a photograph of the licensee is not valid for federal identification purposes or for voter identification purposes. Valid without photo can only be issued at the Ragland Building, 1900 W 7th Street, Room 1120, Little Rock, AR 72201.

Act 1013: Provides a reduced State sale and use tax rate of 3.5% on the sale of a used motor vehicle, trailer, or semitrailer that has a sales price of at least four thousand dollars ($4,000) but less than ten thousand dollars ($10,000).

  • If the total price for the sale of a used motor vehicle, trailer or semi-trailer is less than ($4,000), no tax will be collected.
  • If the total price for the sale of a used motor vehicle, trailer or semitrailer is at least ($4,000) but less than ($10,000), the gross price of the vehicle will be taxed at the reduced state tax rate of (3.5%).
  • Local tax will not be subject to the reduced state tax rate.
  • If the total price for the sale of a used motor vehicle, trailer or semitrailer is ($10,000) or more the vehicle will be taxed at the rate of (6.5%).
  • The reduced sales tax rate for the sale of used motor vehicles, trailers, and semitrailers under Act 1013 applies to the date of sale, not the date of registration. If a used vehicle is purchased in December 2021, it will not be eligible for the reduced sales tax rate (effective January 1, 2022) even if the vehicle is registered in January 2022. The reduced rate is only effective for purchases on or after January 1, 2022.

 

Did you know that these laws are frequently misunderstood?

  • Drivers may turn right at a red light after coming to a complete stop, and entering the intersection for the purpose of making a right hand turn only, unless there is a sign prohibiting the turn.
  • Drivers must always use headlights when using windshield wipers.
  • The seller/transferor of a vehicle must print the buyer’s/transferee’s name in the assignment section on the back of a certificate of title and the seller and buyer must sign and print their names in the appropriate sections of the title assignment.