What are the Arkansas Use Tax rates? Arkansas Consumer Use Tax “state tax” rate is 6.5 percent of the purchase price of general merchandise and taxable services plus any applicable City and County Consumer Use Tax.
Does Arkansas have a use tax?
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. A list of tax rates for cities and counties may be obtained from the Sales Tax and Use Tax Section or downloaded from our website.
What is consumer tax used for?
Consumer use taxes are imposed by state and local governments for two reasons — to prevent someone from evading a sales tax by buying goods or taxable services from a non-taxing state and shipping them into the state that imposes the sales tax.
What is Arkansas sales tax in 2022?
6.5%
Current Tax Rate is 6.5% (non-food items).
How do I avoid sales tax in Arkansas?
With a resale certificate, also known as a reseller’s permit, your business does not have to pay sales tax when purchasing goods for resale.
What items are taxable in Arkansas?
Arkansas imposes sales tax on all purchases of tangible personal property unless a specific exemption applies. Services are taxable only if the service is specifically enumerated by law as a taxable service. Use tax was designed to assure fair competition between Arkansas businesses and their out-of- state competitors.
What is sales and use tax?
What are sales and use taxes? Sales taxes are assessed to purchasers of products from commercial sellers. Use taxes are assessed when purchasing goods from a separate jurisdiction that charges less than the applicable use tax rate.
What is an example of a use tax?
Import fees, duty, foreign taxes, Value-Added Tax (VAT)
For example, purchases of antiques more than 100 years old are subject to California use tax even if the purchase was exempt from the import duties.
Who pays sales tax buyer or seller?
Liability to Pay the Tax
The liability to pay the sales tax in case of goods being supplied lies upon the consumer whereas the liability to pay the sales tax of imports lies upon the importer according to section 3 of the Sales Act 1990.
Is use tax deductible on federal return?
Taxpayers who itemize deductions on their federal income tax returns can deduct state and local real estate and personal property taxes, as well as either income taxes or general sales taxes. The Tax Cuts and Jobs Act limits the total state and local tax deduction to $10,000.
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.
Is Arkansas a high tax state?
Arkansas has a 6.50 percent state sales tax rate, a max local sales tax rate of 6.125 percent, and an average combined state and local sales tax rate of 9.47 percent. Arkansas’s tax system ranks 44th overall on our 2022 State Business Tax Climate Index.
What items are 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.
What is vendor use tax in Arkansas?
Arkansas Consumer Use Tax “state tax” rate is 6.5 percent of the purchase price of general merchandise and taxable services plus any applicable City and County Consumer Use Tax.
Who has to pay sales tax in Arkansas?
Sales and Use Tax
The Arkansas sales tax is 6.5% of the gross receipts from the sales of tangible personal property and certain selected services. “Sale” includes the lease or rental of tangible personal property.
Does Arkansas tax Social Security?
For instance, Arkansas exempts Social Security benefits and up to $6,000 of retirement income from its state income tax. And, as a plus for veterans, all military pension income is tax-exempt.
Is lawn mowing taxable in Arkansas?
Lawncare services are listed as taxable services under Arkansas code, and can be defined as “the maintenance, preservation, or enhancement of ground covering of nonresidential property and does not include planting trees, bushes, and shrubbery, grass, flowers, and other types of decorative plants.” This specifically
How do I get a sales and use tax permit in Arkansas?
How do you register for a sales tax permit in Arkansas? You can register online at the Arkansas Taxpayer Access Point (ATAP) or fill out the paper application Just click “Sign up” and you’ll be prompted to enter business info then register for your sales tax permit.
Do I have to pay taxes on selling personal items?
Sold goods aren’t taxable as income if you are selling a used personal item for less than the original value. If you flip it or sell it for more than the original cost, you have to pay taxes on the surplus as capital gains.
What is a local use tax?
Use tax applies to purchases made outside the taxing jurisdiction but used within the state. Use tax also applies to items purchased exempt from tax which are subsequently used in a taxable manner. There are two types of use taxes – Consumer Use Tax and Vendor/Retailer Use Tax.
How can I sell online without paying taxes?
Online ‘Garage Sales’
The rule of thumb is that if you used the items and then sold them for less than you bought them for, then you owe no taxes on the sale. However, if you sold an antique or collectible that had appreciated since you first acquired it, you likely would be on the hook for taxes on the profit.