Back to Sales Tax Updates

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10/27/2011 – repealed effective 6/30/2019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10/27/2011 – repealed effective 6/30/2019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 5-6, 2023

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 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.

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.

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.

Arkansas Enacts Economic and Marketplace Nexus Legislation

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

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.

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.

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.

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.

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.

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.

Amazon to Begin Collecting Arkansas Sales Tax on March 1, 2017

Amazon.com entered a voluntary sales tax collection agreement with Arkansas and will begin collecting sales tax on its sales to Arkansas consumers and businesses beginning March 1, 2017.

Online Sales Simplification Act of 2016 Discussion Draft is Introduced

The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.

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.

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. If passed, the bill would authorize states that meet certain requirements to require remote sellers that do not meet…

Arkansas Enacts Click-Through Nexus and Affiliate Nexus Bill

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

Arkansas auto insurance settlement.

All applicable taxes must be included by the insurer to the insured, or to the person with claim against the insured, in the settlement of a claim for damages to an automobile as a total loss. These taxes include sales…