What is the sales tax in Arkansas?
The Arkansas sales tax is 6.5% of the gross receipts from the sales of tangible personal property and certain selected services. “Sale” includes the lease or rental of tangible personal property. Taxable services include sales of gas, water, electricity, most solid waste disposal, telephone and prepaid telecommunications and repair services.
Is janitorial services taxable in Arkansas?
While Arkansas' sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of services in Arkansas, including janitorial services and transportation services. To learn more, see a full list of taxable and tax-exempt items in Arkansas .
What are taxable and tax-exempt items in Arkansas?
To learn more, see a full list of taxable and tax-exempt items in Arkansas . In the state of Arkansas, chimney cleaning is considered to be exempt. Sales of transportation services are exempt from the sales tax in Arkansas.
Is chimney cleaning subject to sales tax in Arkansas?
In the state of Arkansas, chimney cleaning is considered to be exempt. Sales of transportation services are exempt from the sales tax in Arkansas.
What Transactions Are Generally Subject to Sales Tax in Arkansas?
In the state of Arkansas, sales tax is legally required to be collected from all tangible, physical products being sold to a consumer. Several exam...
Are Services Subject to Sales Tax in Arkansas?
The state of Arkansas does not usually collect any sales taxes on the vast majority of services performed. An example of taxed services would be on...
Are Shipping & Handling Subject to Sales Tax in Arkansas?
Arkansas has very simple rules when it comes to taxes on shipping. Essentially, if the item being shipped is considered to be taxable in Arkansas,...
Are Drop Shipments Subject to Sales Tax in Arkansas?
"Drop shipping" refers to the common business practice in which a vendor, often in a different state, makes a sale of a product which is shipped to...
Is chimney cleaning taxable in Arkansas?
To learn more, see a full list of taxable and tax-exempt items in Arkansas . In the state of Arkansas, chimney cleaning is considered to be exempt. Sales of transportation services are exempt from the sales tax in Arkansas.
Does Arkansas have sales tax?
While Arkansas' sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of services in Arkansas, including janitorial services and transportation services. To learn more, see a full list of taxable and tax-exempt items in Arkansas .
What transactions are subject to sales tax in Arkansas?
What transactions are generally subject to sales tax in Arkansas? In the state of Arkansas, sales tax is legally required to be collected from all tangible, physical products being sold to a consumer. Several examples of exceptions to this tax are certain items which are used in pursuits like agriculture and construction.
Does Arkansas have sales tax?
The state of Arkansas does not usually collect any sales taxes on the vast majority of services performed. An example of taxed services would be one which manufactures or creates a product. This means that a graphic designer would not be required to collect sales tax, while a someone working in the creation of clothing may be required ...
Is shipping taxable in Arkansas?
Arkansas has very simple rules when it comes to taxes on shipping. Essentially, if the item being shipped is considered to be taxable in Arkansas, then the shipping is seen as being taxable as well. If the item being shipped is not legally taxable, then the shipping charge should not be taxed. If the shipment involves multiple items, some taxable ...
What is the compensating use tax in Arkansas?
The Arkansas compensating use tax of 6.5% is levied on tangible personal property purchased from outside the state of Arkansas for use, storage or consumption within the state of Arkansas.
What are the exemptions for sales and use taxes?
Exemptions from Sales and Use Taxes 1 Any interstate or international private communications service and any interstate or international 800 or 900 2 Property that becomes a recognizable, integral part of property manufactured, compounded, processed or assembled for resale 3 Machinery and equipment used directly in manufacturing that purchased for a new manufacturing facility or to replace existing machinery and equipment 4 Machinery and equipment required by Arkansas law to be purchased for air or water pollution control or for removal of sulfur pollutants from refined petroleum 5 Catalysts, chemicals, reagents solutions that are consumed or used in producing, manufacturing, fabricating, processing or finishing articles of commerce at manufacturing or processing plants or facilities; and/or to prevent or reduce air, water and other contamination 6 Sewer services 7 Electricity, petroleum gas and natural gas used (and separately metered) for qualifying agricultural structures and qualifying aquaculture and horticulture equipment and for commercial grain drying and storage 8 Gas produced from biomass in a facility meeting federal eligibility requirements and sold to an entity for the purpose of generating steam, hot air or electricity to be sold to the gas producer
What is a single transaction in Arkansas?
“Single transaction” means any sale of tangible personal property or taxable service reflected in a single invoice, receipt or statement for which an aggregate sales or use tax amount has been reported or remitted to the state for a single, local taxing jurisdiction. These taxes are collected by the state and distributed to the cities and counties each month.
What are taxable services?
Taxable services include sales of gas, water, electricity, most solid waste disposal, telephone and prepaid telecommunications and repair services. Repair and replacement parts for manufacturing machinery are generally taxable.
What is electricity used for in Arkansas?
Electricity used in the production of aluminum metal by the electrolytic reduction process. Electricity used in the manufacturing process. Feedstuffs and medicines used in livestock production, including poultry for commercial production in Arkansas.
What happens if you pay sales tax in Arkansas?
If you legally paid sales tax on the items in the other state, you may be entitled to a reduction in tax for the tax paid to the other state against the tax due Arkansas. If you pay less than the Arkansas tax rate to the other state, you must pay Arkansas the difference (excludes motor vehicles).
Who can claim rebates on sales tax?
In addition, governmental agencies, schools, colleges and universities, churches, and non-profit organizations may apply for rebates/refunds of additional local taxes paid.
Does Arkansas require sales tax for deliveries?
There has been no change in the treatment of deliveries or shipments to another state. Nothing in Arkansas law requires an Arkansas seller to collect sales and use taxes for another state. You are encouraged to contact the other states tax department to determine if you have the requirement to collect their taxes.
