Arkansas Sales Tax Exemption for VA-Assisted Adapted Vehicles

A disabled veteran pays no Arkansas sales tax on a vehicle or adaptive equipment bought with VA's automobile allowance. There is no general sales tax exemption for disabled veterans: bills to create one died in 2023 and twice in 2025.

Also called: 26-52-401(6), sales tax, gross receipts, automobile allowance, 38 U.S.C. 3902, adaptive equipment, HB 1738 of 2025, HB 1319 of 2025, HB 1465 of 2023, Disabled American Veterans.

For: Veteran or service member.

Where it applies

Written for the jurisdictions listed here.

ArkansasState

What is exempt. Arkansas Code section 26-52-401, paragraph (6) exempts gross receipts from "the sale of motor vehicles and adaptive equipment to disabled veterans who have purchased the motor vehicles or adaptive equipment with the financial assistance of the United States Department of Veterans Affairs as provided under 38 U.S.C. §§ 3902-3903". The exemption follows the VA grant: a veteran eligible for the automobile allowance or adaptive equipment because of a service-connected loss of use of limbs, vision impairment, severe burns or similar conditions. Bring the VA approval to the dealer or revenue office. Two related exemptions. Paragraph (25) exempts sales on the premises of the state veterans homes. Paragraph (43), added by Act 518 of 2023, exempts sales to the Disabled American Veterans organization itself, not to its members. What does not exist. There is no Arkansas sales tax exemption for disabled veterans' everyday purchases. House Bill 1465 of 2023 proposed one and did not become law. In 2025 House Bill 1319 was withdrawn by its sponsor, and House Bill 1738 died in House committee when the session ended. Poinsett County's veterans page reports that the Arkansas Veterans Coalition supports a point-of-sale exemption for 100 percent disabled veterans; it is a proposal, not law. The 2026 session was a fiscal session and did not take it up.

Thresholds

Thresholds for Arkansas Sales Tax Exemption for VA-Assisted Adapted Vehicles
Gate	Rule
Only a purchase made with VA automobile or adaptive equipment assistance	Ark. Code Ann. § 26-52-401(6).

Sources

Legislation

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HB 1738 Would have created a sales and use tax exemption for disabled veterans

Catalog reconciledDid not pass

95th General Assembly, 2025 Regular Session

Introduced Done, 2025-03-11, step 1 of 6
In committee Done, 2025-03-11, step 2 of 6
Died Stopped here, 2025-05-05, step 3 of 6
Passed both chambers Not reached, step 4 of 6
Signed by the governor Not reached, step 5 of 6
In effect Not reached, step 6 of 6

Expands benefits Would have created a sales and use tax exemption for disabled veterans.

Died in House committee at sine die adjournment on May 5, 2025. HB 1319 of the same session, a similar exemption for disabled veterans and their spouses, was withdrawn by its sponsor on March 17, 2025, and HB 1465 of 2023 did not become law either. Arkansas exempts only vehicles and adaptive equipment bought with VA assistance under Ark. Code Ann. § 26-52-401(6).

Updated

Last updated 2026-09-30.

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Disclaimer

VetTOC is not affiliated with the U.S. Department of Veterans Affairs or the Department of Defense. Information is for reference only and is not an eligibility determination. Verify with VA, the relevant state or territory, or an accredited VSO.