Arkansas's state sales tax was 6.50% percent in 2017. All rights reserved. The Arkansas Historic Rehabilitation Income Tax Credit Program, administered by the Arkansas Historic Preservation Program, an agency of the Department of Arkansas Heritage, offers a 25% state income tax credit for certified rehabilitation of eligible income and non-income producing properties. Married couples can transfer their exemption to each other. Arkansas has a statewide sales tax rate of 6.5%, which has been in place since 1935. The homestead property may be owned by a revocable or irrevocable trust. The state of Arkansas provides several forms to be used when you wish to purchase tax-exempt items such as agricultural equipment. Restaurant meals may also have a special sales tax rate. Nonresidents and Part-Year Residents The credit is applicable to the “homestead”, which is defined as the dwelling of a person used as their principal place of residence. A major indicator of a state's business climate is its tax structure. § 26-51-2201 et seq.) 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 to collect sales tax. An example of taxed services would be one which manufactures or creates a product. Minority and Women-Owned Business Resources, Community Development Block Grant – Disaster Recovery, Minority and Women-Owned Business Enterprise, Rehabilitation Tax Credits information at ArkansasPreservation.com, A credit of 3.9% of the total annual payroll of the employees working in the childcare facility, or. Candy and soda may be included or excluded from any preferential tax rate depending on whether or not the state considers them to be a "grocery": The taxability of transactions involving services, shipping, and installation of tangible goods can be slightly complicated with various laws applying to slightly different situations. Turnkey application preparation. Enter into a financial incentive agreement with the AEDC for the major maintenance and improvement project; Expend at least $3 million on an approved major maintenance and improvement project that includes the purchase of tangible personal property and services that are either exempt or subject to partial refund of tax under §§26-52-402, 26-52-447, 26-53-114, or 26-53-149; File a completed Manufacturing Replacement and Repair Sales and Use Tax Refund Application with the AEDC; Receive approval from the Director of the AEDC to receive the increased refund of sales and use taxes for the major maintenance and improvement project. ARKANSAS STATE TAX TABLES, Tax Year: 2018; Arkansas Federal and State Income Tax Rate. We considered taxes on Social Security and other retirement income, as well as tax exemptions … Automate your business's sales taxes! Long-term capital gains receive an exemption of 30%, meaning that 30 cents of every dollar are not taxable. Arkansas Sales And Use Tax Exemption Certificate ST391 Step 2: If you are a nonresident purchaser or their representative, give the state in which they were issued a similar permit in the second blank. § 12-412 (Exemptions) Groceries are generally defined as "unprepared food", while pre-prepared food may be subject to the restaurant food tax rate. The full text of the measure can be found here.. Support Present sales & use tax exemption form for exemption from state hotel tax. Sales and Use Tax Administers the interpretation, collection and enforcement of the Arkansas Sales and Use tax laws. 2019 Arkansas Code Title 26 - Taxation Subtitle 5 - State Taxes Chapter 52 - Gross Receipts Tax Subchapter 4 - Exemptions Tit. State Income Tax Filing Requirements If you lived in Arkansas during the previous year and if your income is more than listed in the chart below, you must file an Arkansas income tax return. People choosing to move to Arkansas from another state for retirement are also eligible for the exemption. 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. This table lists a number of additional categories of goods and services that are exempt from Arkansas' sales tax. Any homeowner living in his or her principal place of residence may claim the credit, including seniors. Be eligible for a refund of taxes under §§26-52-447 or 26-53-149 (partial replacement and repair of certain machinery and equipment); Hold a direct pay sales and use tax permit from the DFA; and when claiming the refund, must file their monthly direct pay sales and use tax report using the Department’s electronic tax report filing system. Several examples of exceptions to the sales tax are certain items which are used in pursuits such as agriculture and construction. seq., that the purchase of all firefighting equipment, vehicles, first aid supplies and building materials for use by the VFD are considered as exempt from sales and use tax in the state of Arkansas. Credits are and may be carried forward for up to five years. 52, Subch. PRODUCT DOWNLOAD PURCHASE SUPPORT DEALS ONLINE CART. Arkansas Sales Tax Exemptions The state of Arkansas levies a 6.5% state gross receipts tax, which is similar to sales tax. § 26-51-2201 et seq.) Gasoline or motor vehicle fuel on which the gasoline or motor vehicle fuel tax has been paid. The state of Arkansas does not usually collect any sales taxes on the vast majority of services performed. For a list that also shows taxable items, see the list of taxable and nontaxable items in Arkansas. Qualifying deductions might include an itemized deduction, the Arkansas standard deduction, exemptions for dependants, business expenses, etc. To learn more about how these transactions, and other more complicated situations, are subject to the Arkansas sales tax see the Arkansas sales taxability FAQ page. Exemption extends to sales tax levied on purchases of restaurant meals. Municipal governments in Arkansas are also allowed to collect a local-option sales tax that ranges from 0% to 5% across the state, with an average local tax of 2.157% (for a total of 8.657% when combined with the state sales tax). Arkansas offers tax incentives for businesses that provide childcare for their employees.A business may choose between two state income tax credit options: Arkansas allows taxpayers to receive an income tax credit for the purchase of equipment used exclusively for reduction, reuse or recycling of solid waste material for commercial purposes, whether or not for profit, and the cost of installation of such equipment by outside contractors.Expenditures eligible for tax credit certification: Act 1404 of 2013, as codified in §§ 26-52-447, 26-53-149 and 15-4-3501, establishes two options by which certain state sales and use taxes relating to the partial replacement and repair of machinery and equipment used directly in manufacturing may be refunded to eligible taxpayers beginning July 1, 2014. SALT Report 1376 –The latest issue of the Arkansas State Revenue Tax Quarterly Newsletter discusses the sales tax exemption for new and used farm machinery and equipment. Other Arkansas Sales Tax Certificates: EXEMPTIONS FROM THE 6.5% ARKANSAS GROSS RECEIPTS TAX AND COMPENSATING USE TAX . 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%. States may offer exemption from corporate income, sales, use, and other taxes that they levy. We help your 501(c)(3) nonprofit achieve tax exemption in any state. W2 1099 1095 Software. STATE OF ARKANSAS Employee’s Withholding Exemption Certificate AR4EC Arkansas Individual Income Tax Section Withholding Branch P. O. The aver… To qualify for this refund, a taxpayer must hold a direct pay sales and use tax permit from the Arkansas Department of Finance and Administration (DFA). All estimates in this document are for fiscal year 2011. STATE OF ARKANSAS DEPARTMENT OF FINANCE AND ADMINISTRATION SALES AND USE TAX SECTION EXEMPTION CERTIFICATE GR-53 & AR Code 26-52-517(b)(1), (e), and (f) I hereby certify that I either hold or am the authorized representative of the holder of Arkansas Sales/Use Tax … Prescription Drugs are exempt from the Arkansas sales tax; Counties and cities can charge an additional local sales tax of up to 5.5%, for a maximum possible combined sales tax of 12%; Arkansas has 644 special sales tax jurisdictions with local sales taxes in addition to the state sales tax Miss Willie K. Hocker of Wabbaseka, Arkansas, de- Arkansas Tax Exemption. ARW-3 Transmittal of Wage and Tax Statements: 01/05/2018: ARW-4MS Tax Exemption Certificate for Military Spouse: 02/08/2011: Magnetic Media Specifications for 2020 W-2s & 1099s filed in 2021: 10/26/2020: Withholding Tax Formula (Effective 01/01/2021) 12/10/2020: Withholding Tax Instructions for Employers (Effective 01/01/2021) 12/10/2020 If you're an online business, you can connect TaxJar directly to your shopping cart, and instantly calculate sales taxes in every state. Arkansas collects a state income tax at a maximum marginal tax rate of %, spread across tax brackets. Present state sales tax exemption certificates to vendors, hotels, restaurants, and other service providers in Vermont and various other states to eliminate state tax charges on purchases of goods, services, meals, and lodging by the University. People choosing to move to Arkansas from another state for retirement are also for... 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