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10/27/2011 – repealed effective 6/30/2019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10/27/2011 – repealed effective 6/30/2019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

Congress Approves Permanent Extension of Internet Tax Freedom Act

Congress approved a permanent extension of the Internet Tax Freedom Act, signed into law by the President 02/24/16. More…

Internet Tax Freedom Act Extended Through October 1, 2016

The President signed an act to extend the Internet Tax Freedom Act through 10/01/16. More…

Internet Tax Freedom Act Extended Until December 11, 2015

U.S. House of Representatives passed a provision to extend the Internet Tax Freedom Act until 12/11/15. More…

House Introduces Remote Transactions Parity Act of 2015

U.S. House of Representatives introduced the Remote Transactions Parity Act of 2015 on 06/15/15. More…

Senate Introduces Marketplace Fairness Act of 2015

On March 10, 2015, a bipartisan group of senators introduced the Marketplace Fairness Act of 2015.

Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced

On December 16, 2014, President Barack Obama signed an act including a provision that extends the Internet Tax Freedom Act until October 1, 2015.

Internet Tax Freedom Act is Extended through December 11, 2014

President Barack Obama has signed federal legislation extending the Internet Tax Freedom Act through December 11, 2014.

SST Best Practices Matrix on Deal of the Day Vouchers

The Streamlined Sales and Use Tax (SST) Governing Board has issued a best practices matrix which provides answers to whether the state follows the best practices set forth in the SST Agreement regarding deal-of-the-day vouchers. All SST Member states are…

New Federal Digital Goods and Services Bill Proposed

Representative Lamar Smith (Republican, Texas) has introduced a bill to bar multiple taxes on digital goods and services. Smith had proposed an earlier bill which failed to pass. This bill is a revised version of the earlier bill. The proposed…

Arkansas Implements Temporary Rate Increase

Arkansas has implemented a temporary 0.5% increase in the state sales and use tax rate, effective July 1, 2013. The rate increase will be levied on all taxable sales except food and food ingredients, will be collected for approximately 10…

Arkansas Amends Statutes to Conform to SST Agreement

Arkansas has amended several sales and use tax statutes to conform to the requirements of the Streamlined Sales and Use Tax (SST) Agreement and to make technical changes. A rate change on a purchase from a printed catalog in which…

Federal Government Introduces New Remote Seller Bill

The federal Marketplace Fairness Act of 2013 was introduced in the House of Representatives and the Senate on February 14, 2013.

Arkansas Voters Approve Temporary Rate Increase

Effective July 1, 2013, Arkansas’s state sales and use tax rate will increase from 6% to 6.5%. Arkansas voters approved a constitutional amendment to levy the temporary rate increase at the November 6, 2012 general election in order to provide…

Arkansas Reduces Tax Rate on Utilities Sold to Manufacturers and Electric Power Generators

Arkansas has reduced the sales and use tax rates on natural gas and electricity sold to manufacturers and to specified electric power generators. Effective July 1, 2011, the sales and use tax rate on natural gas and electricity sold to…

Arkansas Enacts Click-Through Nexus and Affiliate Nexus Bill

Arkansas enacted an affiliate nexus and click-through nexus law, effective October 27, 2011.

Software Industry Interpretation of License Upgrade Rejected by SST Panel

During a Compliance Review and Interpretations Committee (CRIC) of the SST Governing Board teleconference, an interpretation request sought by a representative of the software industry was rejected. The Software Finance and Tax Executive Council (SoFTEC) sought a ruling that a…

Arkansas Manufacturing Exemption Amended

Arkansas has amended its sales and use tax exemption to clarify that a partial replacement of manufacturing machinery and equipment which improves manufacturing efficiency is exempt. Machinery and equipment used directly in the manufacturing process include: molds, frames, cavities, and…

Arkansas Lifts County Sales and Use Tax Cap

Effective January 1, 2008, single purchase transactions over $2,500 are no longer subject to a cap on county sales or use taxes. Since the Arkansas General Assembly decided to lift this cap, it will be difficult to get the cap…

Load and Leave Software Reclassified in Arkansas

In a recent law change, Arkansas has altered their definition of computer software to explicitly exclude \”load and leave\” software delivery.

Arkansas Requests Full Membership on SST Governing Board

Arkansas has filed a petition to become a full member state on the Streamlined Sales Tax (SST) Governing Board effective January 1, 2008. Current an associate member state, Arkansas has amended certain definitions, including “telecommunication services” “food sales by nonprofit…

Arkansas Reduces Tax on Utilities Used in Manufacturing

Arkansas has implemented an emergency rule which reduces the sales and use tax rate on natural gas and electricity. Effective July 1, 2007, the tax rate for utilities used directly in the actual manufacturing process is reduced from 6% to…

Arkansas Amended Statute Provides Resale Exemption for Services

On March 19, 2007, Arkansas Governor, Mike Beebe, signed H.B. 1622, which amends and provides that a person performing taxable labor to for another person who holds a retailer’s permit is not required to collect and remit Arkansas sales tax…

Arkansas Governor Repeals Motor Vehicle Lease Provision

On March 28, 2007, Arkansas Governor, Mike Beebe, signed H.B.2226 – repealing conflicting language in Arkansas law pertaining to sales tax on leases or rentals of motor vehicles. The repealed provision stated that any person engaged in the business of…

Arkansas SST Legislation Becomes Law

Arkansas Governor Riley signed the state’s SST conformity legislation, which will become effective January 1, 2008. Additionally, in response to the Agreement’s ban on states imposing tax caps, Arkansas will enact a rebate or credit for local taxes paid in…