Arkansas Code Annotated § 26-52-403 provides a sales and use tax exemption for the purchase of farm machinery and equipment. Gross Receipts Tax Rule GR-51 has been issued by this Department to assist in the implementation of that exemption and states as follows: GR-51.
How much is sales tax on a tractor in Arkansas?
6.500%
The state Use Tax rate is the same as the Sales Tax rate, 6.500%. In addition, you are required to remit the city and/or county tax where the items are first delivered in Arkansas.
Is there sales tax on used equipment in Arkansas?
While the Arkansas sales tax of 6.5% applies to most transactions, there are certain items that may be exempt from taxation. This page discusses various sales tax exemptions in Arkansas.
Other tax-exempt items in Arkansas.
| Category | Exemption Status |
|---|---|
| Manufacturing and Machinery | |
| Merchandise | EXEMPT * |
How much is sales tax on a used vehicle in Arkansas?
The sales tax on a used car in Arkansas is the same as on a new car (unless the car is priced below $4,000)—a statewide base rate of 6.5% plus your local or county tax rate.
Do you pay sales tax on commercial vehicles in Arkansas?
The state sales tax rate paid by purchasers of used vehicles, trailers and semi-trailers priced between $4,000 and $10,000 dropped to 3.5% Saturday, thanks to a state law passed in 2021. The previous rate was 6.5%. Vehicles priced below $4,000 already are exempt from the sales tax.
What is exempt from sales tax in Arkansas?
Some goods are exempt from sales tax under Arkansas law. Examples include prescription drugs, purchases made with food stamps, and some farming equipment.
Do you have to pay sales tax on a used boat in Arkansas?
Arkansas does not charge sales tax on casual sales (individual to individual) for boats.
What is Arkansas sales tax in 2022?
6.5%
Current Tax Rate is 6.5% (non-food items).
Do you have to pay sales tax on used ATV in Arkansas?
Arkansas currently has a sales tax exemption for sales of four-wheelers and ATVs that are not subject to vehicle registration and satisfy the definition of “farm equipment and machinery.” “Farm equipment and machinery” means equipment and machinery that are used in farming for commercial purposes in the production of
How long do you have to pay sales tax on a vehicle in Arkansas?
30 days
Calculating Arkansas Car Sales Tax:
To begin with, a vehicle has to be registered with the DMV no later than 30 days from the day it was purchased. The sales tax is calculated on the total amount of the sale (less trade-in value).
How much is vehicle property tax in Arkansas?
The assessment is 20 percent applied to the “true market value” of real property and to the usual selling price of personal property. The tax due is calculated as the assessed value times the local mileage rate.
Do you have to pay sales tax on a semi truck in Arkansas?
Arkansas also has a sales tax exemption on the sale of a semi-trailers and sales of a class six and class seven truck registered with the International Registration Plan.
What services are subject to sales tax in Arkansas?
Traditional Goods or Services
Goods that are subject to sales tax in Arkansas include physical property, like furniture, home appliances, and motor vehicles. Arkansas charges a 1.5% reduced rate on the purchase of groceries.
Does Arkansas collect sales tax on out of state purchases?
The Arkansas compensating use tax of 6.5% is levied on tangible personal property purchased from outside the state of Arkansas for use, storage or consumption within the state of Arkansas.
How do I get a tax exemption certificate in Arkansas?
Contact 501-682-7104 to request ET-1 forms and the forms will be mailed to your business in two to three weeks. For faster service, file your Sales and Use Tax Returns online at https://atap.arkansas.gov/.
Is there sales tax on used RV in Arkansas?
Currently, Arkansas law provides that the sale or purchase of a new or used motor vehicle, trailer, or semitrailer for less than $4,000.00 is exempt from sales and use tax.
Does a bill of sale have to be notarized in Arkansas?
Bills of sale do not require notarization. All bills of sale in Arkansas, however, must contain the following information: The names, contact information, and signatures and the buyer and seller. The vehicle identification number or VIN.
Do outboard motors have titles in Arkansas?
— The Department of Finance and Administration (DFA) is now issuing boat titles. Arkansas has never issued boat titles in the past, but on Jan. 1 the (DFA) started issuing titles for all boats manufactured in or after 2020. This change is due to legislation from the Arkansas General Assembly (Act 733 of 2019).
How long do you have to register a boat in Arkansas?
Arkansas boat registration
Boat registrations must be applied for within 30 days of purchasing a new vessel. Applicants must provide the hull identification number, proof of ownership such as a current registration or bill of sale, the year, make, model, and horsepower of the boat, and the amount of sale.
Why is sales tax so high in Arkansas?
In addition to having one of the broader sales tax bases in the country, Arkansas also has the third highest average sales tax rate in the country (including local sales tax rates). Together, these mean that Arkansas is heavily reliant on the sales tax for funding state and local government services.
How much is sales tax on a $7000 car in Arkansas?
Do I have to pay sales tax on a used car in Arkansas? Vehicles priced under $4,000 are exempt from sales tax. Vehicles priced from $4,000 to $10,000 are taxed at 3.5%. Vehicles priced over $10,000 are taxed at 6.5%.