Arkansas state sales tax complies with the Streamlined Sales Tax Agreement used by 19 states to simplify and create uniformity in the sales tax laws. Even with this agreement, Arkansas has numerous exclusions, exemptions and rebates for local taxes paid for business expense exceeding $2,500. Arkansas has a payment plan for Arkansas state sales tax and businesses can choose to pay monthly or quarterly.
Determine Sales Tax
Arkansas tax is six percent, but local areas impose an added percentage to this base. If you sell in Arkansas, Arkansas bases the local tax on the point of delivery. You can determine the local rate from your buyer by finding out if he is in the city limits or outside the city limits. The Arkansas Department of Finance and Administration has a tax rate lookup database on the sales tax website.
Use the Arkansas due date page with dates for the entire year to schedule payments on your taxes. This form has three important dates each month for sales tax reporting. The dates shown are the first prepayment date, the date for the monthly report from the month before and the second prepayment date. Use the Tax Center resources to pay your Arkansas sales tax with a credit card if you are in one of the counties set up for credit card payments. You can also make payments over the telephone or in the collector’s office. Mobile phone payments are accepted as well.
The Arkansas Taxpayer Access Point uses the Microsoft Silverlight download program to provide individual taxpayer information for sales and use taxes. Once you have your account set up, you can access it with your ID and password. ATAP has your withholding and state income tax information as well as sales and use tax. Have your personal information available for calculations and additions when you sign in.
Consumer use tax is for items you purchase outside Arkansas that you use in Arkansas and would have paid sales tax on the item if you had purchased it in Arkansas. Arkansas is also adding Internet sales to the use tax. Act 1001 affects Internet sales after October 24, 2011. This new law requires out-of-state sellers who have agreements with Arkansas residents to collect Arkansas state and local sales and use tax. Act 1142 also relates to sales tax and the Internet sellers. Large out-of-state sellers (over $200,000 a month) will have to start making prepayments twice a month of 80 percent of the sales tax due starting in 2012. Even the large sellers will be on a payment plan under the new law.
- Arkansas: Business Tax Center
- Arkansas Department of Finance and Administration: 2011 Filing Due Dates
- Arkansas Department of Finance and Administration: Consumer Use Tax
- Arkansas Department of Finance and Administration: What’s New for Sales Tax in 2011
- Arkansas.gov: Sales and Use Tax Section -- Local Tax Lookup Tools