Arkansas Code
Subchapter 4 - Exemptions
§ 26-52-420. New motor vehicles purchased by nonprofit organizations or with Federal Transit Administration funds

Gross receipts or gross proceeds derived from the sale of new motor vehicles that are purchased by nonprofit organizations and used for the performance of contracts with the Department of Human Services or new motor vehicles purchased with Federal Transit Administration funds are exempt from the taxes levied under this chapter, the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq., and all other state and local sales and use taxes, if the new motor vehicles:
(1) Meet or exceed the state specifications for that class of vehicles as prescribed in the state purchasing law and rules; and
(2) Are used for transportation under the Department of Human Services' programs for the aging, individuals with disabilities, individuals with mental illness, and children and family services.