Arkansas Boat Bill of Sale: Requirements, Fees, and Sales Tax

An Arkansas boat bill of sale is the document that proves a private watercraft sale happened, and because Arkansas does not issue titles for boats, it is the buyer’s primary evidence of ownership. To hold up at the revenue office, it has to include the hull identification number (HIN), year, make, and horsepower of the boat, the sale price, the date, and the signatures of both buyer and seller. The buyer then has 30 calendar days from the purchase date to register the boat.¹

What the Bill of Sale Must Include

The Arkansas Department of Finance and Administration requires every boat bill of sale to describe the vessel by HIN, year, make, and horsepower, and to show the sale price, the transaction date, and both signatures.² If a trailer is included in the deal, its value has to be listed separately, either on the same document or on its own bill of sale, because the state taxes the trailer as a separate item.

The HIN is the 12-character code permanently attached to the hull.³ Getting it right matters more than anything else on the form. If the number on the bill of sale doesn’t match what’s stamped on the boat, registration stalls. The revenue office may ask for a photograph or pencil rubbing of the HIN, so check it against the hull before anyone signs.¹

Form, Signatures, and Notarization

There is no mandatory state form for a boat sale. The DFA website hosts a general bill of sale form, but it is written for motor vehicles. Any written document works for a boat as long as it contains the required items: HIN, year, make, horsepower, sale amount, date, and both signatures.² A simple one-page template covering those points is enough.

Both parties sign. Notarization is not required. For a higher-value sale, or one where the boat’s history is unclear, having a notary verify identities is cheap insurance against a later dispute, but it is a choice, not a rule.

Which Boats This Applies To

Any boat powered by a motor or sail must be registered in Arkansas before operating on public waters, and that includes boats with trolling motors. Paddle- or oar-only boats do not need registration. A boat already registered in another state can use Arkansas waters for up to 90 consecutive days without an Arkansas registration, and vessels documented by the U.S. Coast Guard are exempt from state registration numbers.²

What the Buyer Does Next

The buyer has 30 calendar days from the purchase date to file a registration application with the DFA.¹ Two stops at the county come first.

County Assessor

Take the bill of sale to the county assessor and have the boat added to the personal property rolls for the current year. Arkansas requires personal property to be assessed by May 31; missing that date triggers a 10% late-assessment penalty.⁴ The assessor gives you stamped proof of assessment to carry to the revenue office.

Personal Property Tax Proof

You also need proof that any personal property taxes due by the previous October 10 have been paid. A receipt from the county tax collector works, as does a certification of payment stamped on the assessment papers.² A first-time Arkansas boat owner typically has no prior-year taxes due, and the assessor can confirm that on the spot.

Revenue Office

With the bill of sale, proof of assessment, proof of tax payment, and HIN verification, you file the registration application at an Arkansas revenue office. The application has to be signed by the owner.¹ Once approved, the state issues a certificate of number and a permanent registration number. Arkansas registrations are valid for three years.

Registration Fees

Fees are based on boat length and each one covers the full three-year period. Initial registration and renewal cost the same.⁵

Under 16 feet: $7.50
16 feet to under 26 feet: $15.00
26 feet to under 40 feet: $51.00
40 feet and over: $105.00

Sales Tax on a Private Boat Sale

Arkansas does not charge sales tax on casual sales, and a private boat transaction between individuals is a casual sale. Buy a boat from another person rather than a dealer and you will not owe the 6.5% state sales tax. Sales tax is collected at the revenue office only when the seller is a dealer or business.²

Show the purchase price on the bill of sale regardless. The DFA uses that figure to confirm the nature of the transaction and apply the correct tax treatment. A boat bought from an out-of-state dealer and brought into Arkansas will generally be hit with the 6.5% compensating use tax at registration, with potential credit for sales tax already paid to another state.

Liability Insurance Can Block Registration

Arkansas requires liability insurance on any motorboat with more than 50 horsepower and on any personal watercraft regardless of horsepower. The policy has to provide at least $50,000 per occurrence and come from a company authorized to do business in the state. Operating without it is unlawful.⁶

The revenue office will not issue a certificate of number for a qualifying boat without seeing proof of a conforming policy.¹ Line up coverage before the trip to the revenue office, or expect to come back a second time.

What the Seller Should Do

After handing over the boat and the signed bill of sale, the seller’s main job is to keep a copy. Arkansas law requires the Game and Fish Commission to be notified when a certificate of number transfers, but that notification happens through the buyer’s registration, not through a separate seller filing.⁵

Keep that signed copy indefinitely. If the buyer never registers the boat and it later turns up in an accident or dispute, the bill of sale is the proof that ownership had already changed hands. A quick message to the buyer after 30 days confirming they registered is worth the thirty seconds it takes.

1
Justia Law. Arkansas Code 27-101-304 – Filing of Application – Issuance of Certificate – Definition
2
Arkansas Department of Finance and Administration. Motor Boat Registration
3
Federal Register. Hull Identification Numbers for Recreational Vessels
4
Arkansas Department of Finance and Administration. Personal Property
5
Justia Law. Arkansas Code 27-101-306 – Numbering Period – Expiration – Renewal
6
Justia Law. Arkansas Code 27-101-207 – Liability Insurance Required