Free Arkansas Gift Bill of Sale
Gifting a vehicle to a family member in Arkansas may avoid sales tax if the DFA treats the transfer as an exempt gift — confirm at the revenue office before counting on it. Write "GIFT" as the sale price on the bill of sale and on the signed-over title, then complete the transfer at your local Arkansas DFA revenue office within 60 days. While a gift affidavit is not mandatory, including one with your paperwork provides a clear paper trail if the tax exemption is ever questioned.
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Arkansas Gift Bill of Sale — What You Need to Know
Sales Tax Details
Some gifts or family transfers may be exempt from Arkansas sales tax — confirm the current rule and any paperwork with the DFA revenue office before relying on it. A written gift statement documents that no money changed hands.
Exemption: Some family gifts may be exempt from Arkansas sales tax — confirm with the DFA revenue office
Inspection Requirements
Arkansas does not require a statewide vehicle safety or emissions inspection at the time of a title transfer or registration.
Arkansas Gift Sale — Step-by-Step Checklist
- Sign the back of the existing Arkansas vehicle title over to the recipient, writing "GIFT" in the purchase price / consideration field.
- Prepare a bill of sale with the donor's and recipient's full legal names, vehicle year/make/model/VIN, the gift date, and "GIFT" as the stated consideration.
- Optionally prepare a simple gift affidavit signed by both donor and recipient (notarized is preferred) confirming the transfer is a bona fide gift between immediate family.
- Both parties bring valid government-issued photo ID to the local DFA revenue office.
- Submit the signed title, bill of sale, optional gift affidavit, and payment for the title fee to the DFA revenue office.
- The recipient must obtain new registration and license plates in their name at the same visit.
- Complete the transfer within 60 days of the gift date to avoid late penalties.
Common Pitfalls
- Writing $1 or another nominal amount instead of "GIFT" — Arkansas DFA may treat any non-zero price as the taxable sale amount and assess the 6.5% sales tax accordingly.
- Assuming every family gift is tax-free — confirm with the DFA revenue office which relationships (if any) qualify before relying on an exemption.
- Missing the 60-day registration window, which results in late penalties and leaves the vehicle legally in the donor's name.
- Skipping a written gift statement — it documents that no money changed hands if the transfer is ever questioned.
- Failing to update the vehicle's insurance to the recipient's name before driving it away.
Pro Tip
Writing "GIFT" clearly on both the title and the bill of sale, and completing the transfer at the DFA revenue office within 60 days, are the critical steps for a clean Arkansas vehicle gift.