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 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 sales taxable 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.
Who has to collect sales tax in Arkansas?
Arkansas considers vendors who make more than $100,000 in sales annually or more than 200 transactions in the state to have economic nexus. This means the state considers these vendors obligated to collect sales tax from buyers in the state.
Does Arkansas collect sales tax on out-of-state purchases?
The Sales and Use Tax Section has developed a form for individuals to report the Use Tax on purchases made from out-of-state. Use Tax is a tax on tangible personal property purchased out-of-state and brought into Arkansas for use, storage, consumption, or distribution.
Does Arkansas charge sales tax on food?
The information contained in this guide is based on the Arkansas Code and Rules in effect on January 1, 2018. Beginning July 1, 2011, the state sales and use tax rate on food and food ingredients will be reduced to 1.5%.
What is Arkansas sales tax in 2022?
6.5%
Current Tax Rate is 6.5% (non-food items).
Does Arkansas charge a tax for services?
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.
Does AR charge sales tax on labor?
Are services subject to sales tax in Arkansas? “Goods” refers to the sale of tangible personal property, which are generally taxable. “Services” refers to the sale of labor or a non-tangible benefit. In Arkansas, specified services are taxable.
Do you charge sales tax on cleaning services in Arkansas?
Residential house cleaning services are taxable in Arkansas. House cleaning services must collect and send sales taxes to the Department of Finance and Administration.
How do I avoid paying sales tax on a used car in Arkansas?
You can avoid paying sales tax on vehicle transactions in Arkansas if you purchase a used car for less than $4,000.
Do you have to pay sales tax on a used car in Arkansas?
How much is sales tax on a used car 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.
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
Does Arkansas charge sales tax on Internet?
All remote sellers and marketplace facilitators are required to collect and remit Sales and Use tax to the State of Arkansas if within the current or previous year the sale of tangible personal property, taxable services, a digital code, or specified digital products for delivery into Arkansas exceeded one hundred
What food doesnt get taxed?
Food Products – Nontaxable
Food products are not taxable. Food products include flour, sugar, bread, milk, eggs, fruits, vegetables and similar groceries. only cut up, repackaged or pasteurized such as fruit, vegetable or cheese trays.
What state has no sales tax?
While most states require you to pay sales tax on goods and services, there are five states that don’t: Delaware, Alaska, Montana, New Hampshire and Oregon.
How much is tax on alcohol in Arkansas?
“Spirituous Liquor” is taxed at the rates of: Two dollars and fifty cents ($2.50) on each gallon sold or offered for sale in the State of Arkansas AND.
Statistics.
| Title | Posted |
|---|---|
| Liquor Revenue FYE 2020 | 07/02/2020 |
| Liquor Revenue FYE 2019 | 07/05/2019 |
| Liquor Revenue FYE 2018 | 07/03/2018 |
| Liquor Revenue FYE 2017 | 07/03/2017 |
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 city has the highest taxes in Arkansas?
Arkansas: Sales Tax Handbook
Combined with the state sales tax, the highest sales tax rate in Arkansas is 12.625% in the city of Gillham.
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.