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 Rate

6.500%

Range of Local Rates

0% – 5.50% 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

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10/27/2011 – repealed effective 6/30/2019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10/27/2011 – repealed effective 6/30/2019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

Annual Back to School Holiday

August 3-4, 2019

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.

Economic Nexus State Guide

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.

South Dakota v. Wayfair Analysis & Predictions: Sales Tax Experts Weigh-In

Sales tax experts lend their insight into and predictions for one of the most important U.S. Supreme Court decisions regarding sales tax in decades, South Dakota v. Wayfair.

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.

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

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.

Sales of Card Games to Crowdfunding Donors Taxable in Arkansas

A company that used a crowdfunding campaign to raise funds to produce a card game was liable for Arkansas sales tax on its sales of the card game to its crowdfunding donors.

Arkansas Issues Opinion Regarding Sourcing Rules for Local Sales Tax

Arkansas has issued an opinion providing guidance on sourcing rules for local sales tax that tax is due at the point where the customer receives the goods.

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.

Arkansas Issues Guidance on Taxability of Digital Subscriptions

Arkansas has issued an opinion discussing the taxability of digital subscriptions.

Arkansas Discusses Grounds to Cancel Sales and Use Tax Permits

The Arkansas Department of Finance and Administration has issued an opinion regarding the grounds on which sales and use tax permits can be cancelled.

U.S. Supreme Court Issues Decision In South Dakota v. Wayfair

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case, ruling in favor of South Dakota and overturning Quill’s physical presence rule.

Multistate Tax Commission Updates Its Uniform Sales & Use Tax Exemption Certificate

The Multistate Tax Commission (MTC) revised its Multijurisdictional Uniform Sales & Use Tax Exemption/Resale Certificate on January 22, 2018 to reflect two state changes.

Record Number of Sellers Participate in 2017 MTC Amnesty Program

The volume of applicants for the 2017 online marketplace seller tax amnesty program overwhelmed the Multistate Tax Commission.

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.

Arkansas to Phase-In Full Exemption for Certain Manufacturing Purchases

Arkansas amended its use tax refund for partial replacement and repair of certain machinery and equipment. Beginning July 1, 2022, purchases qualifying for the tax refund will be 100% exempt.

Equipment Lease is Taxable Transfer of Property in Arkansas

Leases of equipment by a taxpayer were subject to Arkansas sales tax and short-term rental tax since tangible personal property was transferred to customers at delivery sites and services rendered were incidental.

Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017

Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.

Candy and Soft Drinks to be Taxed at Full Arkansas Sales Tax Rate, Effective January 1, 2018

Arkansas enacted legislation to exclude candy and soft drinks from the definition of “food and food ingredients,” subjecting candy and soft drinks to the full Arkansas sales and use tax rate instead of the reduced rate.

Specified Digital Products and Digital Codes are Subject to Arkansas Sales Tax, Effective January 1, 2018

Effective January 1, 2018, Arkansas sales and use tax applies to specified digital products sold to a purchaser who is an end user with the right of permanent or less than permanent use granted by the seller.