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Arkansas Sales Tax

On this page you will find handy sales and use tax information about Arkansas.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Arkansas that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Sales Tax Rates
State Rate

6.500%
Range of Local Rates

0% – 6.125% A cap on the local sales/use tax applies on sales of any item of tangible personal property. Some local jurisdictions do not impose a sales tax.
Local Rates Apply to Use Tax

Yes
Remote Seller Nexus Rules
CLICK-THROUGH NEXUS

10/27/2011 – repealed effective 6/30/2019
AFFILIATE NEXUS

10/27/2011 – repealed effective 6/30/2019
ECONOMIC NEXUS

7/1/2019
MARKETPLACE NEXUS

7/1/2019
Sales Tax Holidays
Annual Back to School Holiday

August 3-4, 2024

1. Clothing and footwear – less than $100 per item
2. Clothing accessories and equipment – less than $50 per item
3. School supplies, school art supplies, and school instructional materials
Administration Information
Streamlined Sales Tax Status

Full Member
NUMBER OF TAXING AUTHORITIES

392 Sales Tax Jurisdictions

HOME RULE AUTHORITIES

N/A
Sales Tax Sourcing (Intrastate)

Destination
Sales Tax Return Due Date

The 20th of the month following the reporting period
Exemption Information
RESALE CERTIFICATE

Arkansas Resale Certificate
TYPES OF EXEMPTIONS

Product types of exemptions: manufacturing equipment and machinery, pollution control machinery and equipment, sewer services, dental appliances, electricity used in manufacturing, agricultural and livestock, timber harvesting equipment, farm equipment and machinery, newspapers

 

Entity types of Exemption: sales by churches, sales to the U.S. government only

 

Arkansas Exemption Certificate Forms
History & Fun Facts
HISTORY

Arkansas enacted its state sales or gross receipts tax in 1937 and it was later codified in 1941. In 1949, the state enacted the compensating use tax.

 

Arkansas amended its sales and use tax laws in 2003 to conform with the Streamlined Sales and Use Tax Agreement.
FUN FACTS
  • In Arkansas, sales of new motor vehicles to blind U.S. Armed Services veterans are exempt from state sales and use tax.
  • In Arkansas you can be taxed for body modifications such as tattoos, electrolysis, and piercings They are all considered taxable services.

Arkansas Rules Artificial Turf Installation to Not Be Taxable Landscaping

Arkansas Tax Appeals Commission determined that a company\’s installation and repair of artificial turf for athletic fields did not qualify as a taxable landscaping service.

Arkansas Rules Leased Pallets Do Not Qualify for Resale Exemption

In November 2023, the Arkansas Tax Appeals commission released a ruling in a case that involves a taxpayer who filed petitions seeking relief from the denial of proposed refund claims related to sales and short-term rental taxes on pallets.

Arkansas Enacts Exemption for Qualifying Data Centers

Arkansas has enacted legislation that creates a sales and use tax exemption for qualifying data center equipment and costs and certain services provided to a data center.

Arkansas Storm Victims Qualify for Tax Relief, Extended Federal Returns Deadline

The Internal Revenue Service (IRS) has issued a news release stating that Arkansas storm victims now have until July 1, 2023 to file various federal individual and business tax returns and make tax payments.

Arkansas Denies Refund Claim for Reimbursement of Material Cost to Construction Contractor

The Arkansas Department of Finance and Administration denied a refund claim filed by a taxpayer who had accrued consumer\’s use tax on payments to their construction contractors to reimburse them for materials.

Landscaping Services Provided by Construction Company Subject to Tax in Arkansas

In a request for revision, the Arkansas commissioner of revenue affirmed an administrative law judge’s determination that a construction company was required to collect and remit sales tax on landscaping work that it performed.

Arkansas Confirms Receipts from Sales of TPP Properly Subjected to Tax

The Arkansas Department of Finance and Administration Office of Hearings and Appeals (OHA) determined that the Department of Finance and Administration properly assessed tax on the sale of Tangible Personal Property by an Arkansas taxpayer.

Arkansas sustains sales tax assessment against company ruled to have sufficient nexus within the state

A June 2022 ruling by an Arkansas Administrative Law Judge sustained a tax assessment by the Department of Finance and Administration against a company deemed to have “sufficient nexus” within the state.

Arkansas Rules on Pollution Reduction Equipment Exemptions

An Arkansas taxpayer protested the denials of sales tax refund claims resulting from audits.

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Economic Nexus State by State Chart

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

Sales Tax Holiday Season is Here

With sales tax holiday season right around the corner, now is a good time to look at how sales tax holidays work and examine the different types of holidays that states offer.

Arkansas Supreme Court Affirms Manufacturer’s Exemption for Steel Grit

The Arkansas Supreme Court affirmed that purchases of steel grit used by a company manufacturing pipes qualified for the sales and use tax manufacturing equipment exemption.

Arkansas Includes Electronic Devices for Sales Tax Holiday

Arkansas’ sales tax holiday has been amended to include electronic devices due to the state of emergency during COVID-19.

Arkansas Issues Guidance on Taxability of Virtual Services

The Arkansas Department of Finance and Administration has issued guidance regarding the taxability of services provided virtually.

Arkansas Issues Guidance Regarding Filing Obligations of Marketplace Sellers

Arkansas has issued a letter opinion regarding the filing obligations of marketplace sellers who make sales only through a marketplace facilitator.

Digital Planners and Educational Video Courses Taxable as Digital Goods in Arkansas

A taxpayer’s sales of digital planners and educational video courses were taxable in Arkansas since they qualify as taxable digital goods.

Church’s Purchases of Supplies and Food Not Exempt in Arkansas

A church was denied a request for exemption from Arkansas sales tax on purchases of janitorial supplies, office supplies, groceries and packaged food, and curriculum.

Sellers May Be Contacted About Other Taxes Under New Streamlined Sales Tax Governing Board Rule

Sellers registered through SSTP may be contacted about other taxes in the member states where they register with the SSTP.

Arkansas Discusses Application of Manufacturing Machinery and Equipment Exemption

Arkansas issued a legal opinion discussing the application of the state’s manufacturing machinery and equipment exemption.

Arkansas Enacts Economic and Marketplace Nexus Legislation

Arkansas has enacted economic and marketplace nexus legislation, effective July 1, 2019.

Arkansas Administrative Decision Examines Taxability of Replacement Part Purchases

The Arkansas Department of Finance and Administration partially sustained the denial of a taxpayer\’s claim for refund of tax paid on purchases of tangible personal property and services.

Arkansas Issues Legal Opinion Clarifying Manufacturing Machinery and Equipment Exemption

Arkansas has issued a legal opinion clarifying the state’s exemption for manufacturing machinery and equipment.

Arkansas Decreases General Sales and Use Tax Rate for Food

Arkansas has decreased its general sales and use tax rate on food to 0.125%, effective January 1, 2019.