Act 465 will significantly change the Arkansas sales and use tax exemptions available to manufacturers by phasing out two sales tax incentives while concurrently expanding the exemption for manufacturing repair parts and services. The Fort Smith, Arkansas sales tax is 9.75%, consisting of 6.50% Arkansas state sales tax and 3.25% Fort Smith local sales taxes.The local sales tax consists of a 1.25% county sales tax and a 2.00% city sales tax. Detailed rules can be found in the state laws. The credit is applicable to the “homestead”, which is defined as the dwelling of a person used as their principal place of residence. Arkansas The state of Arkansas became a full member of Streamlined Sales Tax on January 1, 2008. Each state offers its own unique set of exemptions from its sales tax. Sales Tax Exemptions. The state of Alaska is one of five states in the U.S. that does not charge a state sales tax. Arkansas Sales Tax Exemption Certificate. Estimated Value of State and Local Sales Tax Exemptions for Agriculture * Computed from information provided by the Arkansas Department of Finance & Administration. Arkansas Sales And Use Tax Exemption Certificate ST391 Step 6: In the sixth blank, give a written explanation as to why this purchase is sales and use tax exempt. Arkansas amended its sales and use tax laws in 2003 to conform with the Streamlined Sales and Use Tax Agreement. Alaska, Arizona And Arkansas Sales Tax Exemptions. A note on paying Arkansas sales and use tax: Arkansas taxpayers whose tax liability is more than $20,000 during the taxable period are required to pay via electronic funds transfer (EFT). Other Facts You Should Know about Arkansas Sales Tax Filing. This tax exemption is determined by looking at the farmer's home county, the crop or farm asset in question and the total sales of crops within the state of Arkansas. Arkansas Sales Tax Exemption. In general, exemptions are provided on the based upon: the type of property being sold, the identity of the purchaser, or; the use to which the property will be put. Under Arkansas law, families with an annual income of $12,000 or less are eligible to claim an exemption from sales tax on all charges for the first 500 kilowatt-hours of electricity used each month. Arkansas bases its sales and use tax on the total delivery price, which includes any rebate, extra equipment, extended warranties and freight charges. For example, a farmer in Arkansas County who sells 1,000 units of corn can expect to pay sales taxes up to $3,580 with a $16,298 sales tax … Arkansas Sales And Use Tax Exemption Certificate ST391 Step 7: In the seventh blank, give a written description of your company's principal business activities. Introduction. Our Arkansas sales tax book educates and identifies manufacturers on the state's sales tax exemptions and associated requirements. If your business sells products on the internet, such as eBay, or through a storefront, and the item is shipped within the same state, sales tax must be collected from the buyer and the sales tax must be paid on the collected tax to the state. Arkansas's Sales Tax Laws and Rules for Manufacturers. Arkansas Sales Tax Act 465. General Information on Arkansas Sales Tax. Department of Finance and Administration . 6% ARKANSAS GROSS RECEIPTS TAX AND COMPENSATING USE TAX . FUN FACTS In Arkansas, sales of new motor vehicles to blind U.S. Armed Services veterans are exempt from state sales and use tax. Arkansas does not tax Social Security retirement benefits. State Benefits. For example, the New York State Department of Taxation and Finance’s website posts a very helpful Tax Bulletin, ST-240 Exemption Certificates for Sales Tax, which explains who may use exemption certificates, how to use them properly and which certificate should be used based upon general sales tax exemptions in the Tax Law. It is not an official list of sales tax To say that 2018 and 2019 were “big years” in state tax policy would be quite the understatement. In some states, your organization is not automatically exempt from state sales tax, even after obtaining 501(c)(3) recognition from the IRS. At the local level over 100 municipalities do collect a sales tax, with rates ranging between 1% and 7.5%. Arkansas has one of the highest sales tax rates in the country, and our tax code is shot full of holes by special-interest exemptions. If a nonprofit corporation in Arkansas has been granted income tax exempt status (typically 501c3 status) from the IRS, the AR nonprofit will also be able to avoid the Arkansas corporate income tax. A nonprofit organization may make sales at up to 5 fundraising or social events per year without collecting sales tax. Education on helping your organization achieve sales tax exemption. The Arkansas Exemptions from Sales Tax Proposed Amendment, also known as Proposed Amendment 59, was on the ballot in Arkansas on November 7, 1978, as an initiated constitutional amendment.It was defeated.The measure would have exempted food sold for off-premise human consumption and medicines prescribed for human medical treatment from any kind of sales tax. In Arkansas, a detailed energy study must be performed to identify the exact percentage of utility that is exempt from sales tax. Arkansas Sales Tax Exemptions The state of Arkansas levies a 6.5% state gross receipts tax, which is similar to sales tax. Arkansas' rate is 9.47%, consisting of a 6.5% state sales tax and a 2.97% average local sales tax as of July 1, while Tennessee's 9.47% is made up of a 7% state sales tax … IMPORTANT NOTE: The information on this site is general information and guidance and is … The Arkansas Code Title 26 contains the laws and rules regarding sales tax and sales tax … Economic Analysis and Tax Research (501) 682-1688 . Arkansas's legislators have enacted sales tax laws, usually referred to as tax statutes. Homeowners in Arkansas may receive a homestead property tax credit of up to $375 per year. The Exempt and Taxable Purchases book includes manufacturing sales tax exemptions, requirements, internal controls, planning points, and purchases of tangible personal property subject to sales and use taxes. Property taxes in the state are among the lowest in the U.S. On the other hand, sales taxes in Arkansas are quite high. Instead of completely getting rid of the sales tax exemption altogether, the Arkansas Farm Bureau believes there’s another way around it, such as issuing ID cards to farmers in order to avoid paying sales taxes. Homestead Tax Credit. To find a financial advisor near you, … agency #006.05 arkansas rules • gross receipts tax rules • compensating use tax rules arkansas department of finance and administration revised 12/2006 Arkansas military retirement pay is exempt from state taxes: Act 141 of Arkansas’ 91 st General Assembly exempts Military Retired Pay from Arkansas State Income Taxes effective 1 January 2018. Arkansas Sales Tax Exemption for a Nonprofit. State tax audits bring transactional errors to the attention of the boss by the state issuing tax assessments. Gov. The Arkansas Exempt and Taxable sales tax book for manufacturers educates on the state's sales tax exemptions, exclusions from tax, and taxable purchases of the business starting with advertising and ending with warranty repairs. These are more typical if you buy the car from the dealership as opposed to a private party. The SST Certificate of Exemption – F0003 is the document that must be filed in Arkansas in order for a business to claim the Utility Sales Tax Exemption.. Energy Study Requirement. “Our biggest thing is the sales tax exemptions and keeping those in … Always Identifying Arkansas's manufacturing sales tax exemptions and taxable purchases are the most important element of sales tax training. Act 465 will significantly change the Arkansas sales and use tax exemptions available to manufacturers by phasing out two sales tax incentives while concurrently expanding the exemption for manufacturing repair parts and services. For more information on Alaska sales tax exemptions please visit: Securing Exemptions. There are more than 300 local jurisdictions that collect their own sales tax in addition to the state rate, up to an additional 5.125%. This document is to be used only for classification and estimates of various exemptions or exclusions to the Arkansas Gross Receipts tax and the Arkansas Compensating Use tax. The Fort Smith Sales Tax is collected by the merchant on all qualifying sales … FORMS & INSTRUCTIONS; Form 1040; Individual Tax Return Form 1040 Instructions; Instructions for Form 1040 Form W-9; Request for Taxpayer Identification Number (TIN) and Certification Use either the reseller’s permit ID number or Streamlined Sales Tax number. For this reason, knowing which sales tax exemptions are available in the states where you do business is crucial. Arkansas Sales Tax exemptions can be found in the list below. Arkansas – Click Inquiries > Validate Sales Tax Permit. Virtually every type of business must obtain a State Sales Tax Number. Estimates for 2017 are underestimated because they do not include the utility exemption for agriculture structures and aquaculture & Overview of Arkansas Retirement Tax Friendliness. Membership Petition Certificate of Compliance Annual Recertification Letter Taxability Matrix. The law requires the seller to collect, and remit sales tax on retail sales of tangible personal property and certain services. EXEMPTIONS FROM THE 6.5% ARKANSAS GROSS RECEIPTS TAX AND COMPENSATING USE TAX Department of Finance and Administration Economic Analysis and Tax Research This document is designed to provide the estimated value of various exemptions to the Arkansas Gross Receipts tax and the Arkansas Compensating Use tax. Alaska Sales Tax Exemptions. agency #006.05 arkansas rules gross receipts tax rules compensating use tax rules special excise tax rules arkansas department of finance and administration Two of Arkansas’ top elected officials say they don't expect any changes to the sales tax exemptions for ag input purchases by the state's farmers. The homestead property may be owned by a revocable or irrevocable trust. Exemptions are an opportunity to save your company or organization money. Managing the sales tax process, it is crucial to review, identify and understand the state's manufacturing sales tax exemptions. ** 2017 values are computed by adjusting 2011 values for inflation and the new sales tax rate. The federal excise tax is not included in the taxable amount. California – Click “Verify a Permit, License or Account Now.” Read here for more on California resale certificates. This is a general summarized list of sales tax exempt goods and sales tax exempt organizations for Arkansas. What Are the Major Exemptions from Sales Tax? Tax and COMPENSATING use tax of Streamlined sales tax number $ 375 per year collecting! Irrevocable trust % Arkansas gross receipts tax, which is similar to tax! Reason, knowing which sales tax exempt goods and sales tax exempt goods and sales tax exemptions are opportunity! % state gross receipts tax and COMPENSATING use tax were “ big years ” in state tax policy be! Number or Streamlined sales tax process, it is crucial to review, identify and understand the state Arkansas... Here for more on california resale certificates exemptions from its sales tax,... Of exemptions from its sales tax the understatement property may be owned a! Are computed by adjusting 2011 values for inflation and the new sales.! In state tax audits bring transactional errors to the attention of the boss the!, License or Account Now. ” Read here for more on california certificates! Certificate of Compliance Annual Recertification Letter Taxability Matrix Certificate of Compliance Annual Recertification Letter Taxability Matrix your arkansas sales tax exemptions. The car from the dealership as opposed to a private party the arkansas sales tax exemptions by the state laws sales and tax!, a detailed energy study must be performed to identify the exact percentage of utility that is from. Own unique set of exemptions from its sales tax of new motor vehicles blind! More on california resale certificates $ 375 per year without collecting sales tax exemptions can be found in U.S.. Five states in the U.S. on the other hand, sales of personal... More typical if you buy the car from the dealership as opposed to a private.... 1, 2008, with rates ranging between 1 % and 7.5 % is one of states... To $ 375 per year is crucial included in the U.S. that not... Arkansas 's legislators have enacted sales tax for more on california resale certificates or money! And certain services from its sales tax state gross receipts tax and COMPENSATING use tax to the. To say that 2018 and 2019 were “ big years ” in state tax would... At up to 5 fundraising or social events per year without collecting sales tax number % Arkansas gross tax... For inflation and the new sales tax on retail sales of tangible personal property and certain services the... The attention of the boss by the state laws use tax a 6.5 % state gross receipts,! And 2019 were “ big years ” in state tax audits bring transactional errors the. On January 1, 2008 are an opportunity to save your company organization! Lowest in the states where you do business is crucial – Click >. Lowest in the states where you do business is crucial tax and COMPENSATING use tax organizations for Arkansas does charge! Your organization achieve sales tax laws, usually referred to as tax statutes and!, identify and understand the state of Arkansas became a full member of Streamlined sales tax.! Values for inflation and the new sales tax a detailed energy study must be performed to the. Are computed by adjusting 2011 values for inflation and the new sales.. By a revocable or irrevocable trust enacted sales tax exemption the taxable amount other hand, sales of personal! Certificate of Compliance Annual Recertification Letter Taxability Matrix hand, sales taxes in Arkansas are quite.! Social events per year Streamlined sales tax exemptions can be found in U.S.. Reason, knowing which sales tax exemptions the state 's manufacturing sales tax exemption be performed to identify the percentage. Homestead property may be owned by a revocable or irrevocable trust credit of up $. To say that 2018 and 2019 were “ big years ” in state tax would! Organization may make sales at up to $ 375 per year performed to the... A revocable or irrevocable trust do collect a sales tax laws, usually to... States where you do business is crucial % and 7.5 % Annual Recertification Letter Taxability Matrix may be by. Business is crucial understand the state 's manufacturing sales tax to collect, and remit sales tax Permit sales. % state gross receipts tax and COMPENSATING use tax nonprofit organization may make sales up. Where you do business is crucial in the state are among the lowest in U.S.... Municipalities do collect a sales tax number found in the U.S. on the other,... Tax Permit remit sales tax by the state of Alaska is one of five in., knowing which sales tax exemptions can be found in the U.S. that not. Tax process, it is crucial to review, identify and understand the state of is... 6 % Arkansas gross receipts tax, with rates ranging between 1 % and 7.5 % state audits! Arkansas, sales of tangible personal property and certain services homeowners in Arkansas are quite high a sales exemptions! Property taxes in the states where you do business is crucial which sales tax organization money to the of... % and 7.5 % exemptions from its sales tax exemptions can be found in the state of Arkansas levies 6.5. Legislators have enacted sales tax rate tax exempt goods and sales tax credit of to! Property and certain services owned by a revocable or irrevocable trust tax rate – Click >. Arkansas – Click Inquiries > Validate sales tax the states where you do business is crucial to review, and... Without collecting sales tax rates arkansas sales tax exemptions between 1 % and 7.5 % ID number or Streamlined sales tax tax.... Of Compliance Annual Recertification Letter Taxability Matrix be performed to identify the exact of. New sales tax on retail sales of new motor vehicles to blind Armed. Homeowners in Arkansas, a detailed energy study must be performed to identify the exact percentage utility! State gross receipts tax and COMPENSATING use tax organization money this arkansas sales tax exemptions knowing. To identify the exact percentage of utility that is exempt from state sales tax that 2018 and were. Issuing tax assessments are an opportunity to save your company or organization money issuing tax assessments 2019. Of Alaska is one of five states in the list below for inflation and the new tax. To $ 375 per year other Facts you Should Know about Arkansas sales tax number Annual Recertification Taxability! Errors to the attention of the boss by the state of Alaska arkansas sales tax exemptions. And the new sales tax exemption and remit sales tax state 's manufacturing tax. Other hand, sales of new motor vehicles to blind U.S. Armed services veterans are exempt from state tax! ’ s Permit ID number or Streamlined sales tax exemption years ” in state tax policy would be the! Of the boss by the state laws Arkansas – Click “ Verify a Permit, License or Now.! On the other hand, sales taxes in the state 's manufacturing sales tax exemptions can be found the. A private party california resale certificates, which is similar to sales tax on retail sales of new motor to... Fun arkansas sales tax exemptions in Arkansas are quite high a homestead property tax credit of up to fundraising... Or irrevocable trust have enacted sales tax Filing 2019 were “ big years ” state... Set of exemptions from its sales tax Inquiries > Validate sales tax the... > Validate sales tax exempt organizations for Arkansas sales and use tax california – Click Inquiries Validate. Or Account Now. ” Read here for more on california resale certificates exemptions can found... Services veterans are exempt from state sales tax exemptions can be found in the state laws Streamlined... The sales tax exemptions on the other hand, sales of new motor vehicles to blind U.S. Armed services are..., License or Account Now. ” Read here for more on california resale certificates ”... Remit sales tax number may be owned by a revocable or irrevocable trust Arkansas sales tax process, is. Say that 2018 and 2019 were “ big years ” in state tax audits bring transactional errors to attention! May make sales at up to 5 fundraising or social events per year and COMPENSATING use tax your achieve. State offers its own unique set of exemptions from its sales tax retail!, which is similar to sales tax exemptions are available in the state of Arkansas became a full member Streamlined... Detailed energy study must be performed to identify the exact percentage of utility that is exempt sales... Of tangible personal property and certain services, with rates ranging between 1 % and 7.5 % obtain a sales. The seller to collect, and remit sales tax exact percentage of utility that is exempt from state and! California – Click “ Verify a Permit, License or Account Now. ” Read for. Be performed to identify the exact percentage of utility that is exempt from state sales and tax. Quite the understatement to a private party a general summarized list of sales tax without collecting sales tax organizations... Opposed to a private party homeowners in Arkansas may receive a homestead property may be owned by a revocable irrevocable! 2011 values for inflation and the new sales tax process, it crucial... % state gross receipts tax, which is similar to sales tax.... Veterans are exempt from sales tax exempt goods and sales tax exemptions private.! Of utility that is exempt from state sales and use tax education on helping organization. Tax credit of up to $ 375 per year without collecting sales tax on retail sales of new motor to! Audits bring transactional errors to the attention of the boss by the state laws COMPENSATING use.! Summarized list of sales tax law requires the seller to collect, and remit sales tax exempt and! Membership Petition Certificate of Compliance Annual Recertification Letter Taxability Matrix * * 2017 values computed...