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 years, and will terminate when there are no bonds outstanding to which tax collections have been pledged. Effective July 1, 2013, the state sales and use tax rate is 6.5%. The manufacturing utilities reduced rate is 3.25%, and the electricity manufacturing reduced rate is 4.75%. The reduced rate for food will remain at 1.5%. For our previous news item on this topic, click here. (Amendment 91 to Arkansas Constitution, Nov 6, 2012 general election; What’s New for Sales Tax in 2013, Arkansas Department of Finance and Administration, May 2013)

Posted on July 22, 2013