What Is Subject To Sales Tax In Arkansas?

What items are taxable in Arkansas?

Goods that are subject to sales tax in Arkansas include physical property, like furniture, home appliances, and motor vehicles.

Arkansas charges a 1.5% reduced rate on the purchase of groceries.

Some services in Arkansas are subject to sales tax..

What does subject to sales tax mean?

Retail sales of tangible items in California are generally subject to sales tax. Examples include furniture, giftware, toys, antiques and clothing. Some labor service and associated costs are subject to sales tax if they are involved in the creation or manufacturing of new personal property.

What is the restaurant tax in Arkansas?

The sales and use tax rate for the State of Arkansas is 6.5% imposed on sales of tangible personal property and various types of services. Food and food ingredients are taxed at a reduced rate of 1.50%.

Are used items subject to sales tax?

Generally if you buy them in a store, sales tax applies. If you buy them in a “casual sale” such as from an individual normally not in the business of selling the goods or at a garage sale, generally there is no sales tax.

How do I pay Arkansas sales tax?

You have two options for filing and paying your Arkansas sales tax:File online – File online at the Arkansas Taxpayer Access Point (ATAP). You can remit your payment through their online system.File by mail – You can use Form ET-1 and file and pay through the mail. … AutoFile – Let TaxJar file your sales tax for you.

How do I file sales tax exemption in Arkansas?

Steps for filling out the ST391 Arkansas Sales Tax Exemption CertificateStep 1 – Begin by downloading the Arkansas Sales Tax Exemption Certificate Form ST391.Step 2 – Include the Arkansas Sales/Use Tax Permit Number or the state and Sales Tax Number if the buyer is from another state.More items…•

Are professional services subject to sales tax?

Professional services: These are considered the least-taxed services due to powerful lobbying presences. Accountants fall into this area, as well as the work performed by attorneys and healthcare professionals, among other licensed professionals.

What is tax free in Arkansas?

Beginning at 12:01 a.m. on Saturday August 1, 2020, and ending at 11:59 p.m. on Sunday August 2, 2020, the State of Arkansas will hold its sales tax holiday allowing shoppers the opportunity to purchase certain School Supplies, School Art Supplies, School Instructional Materials, and clothing free of state and local …

What all is tax free?

Some of the incomes that are exempted from tax are listed below.Agricultural Income. Income from farming and agriculture is tax free. … Gift Tax Exemption. … LTA Exemption. … Saving Bank Interest Exemption. … Interest on PPF and PF. … Tax on Dividend Income. … Academic Scholarships. … Tax Free Bonds & Certificates.More items…

Is buyer or seller responsible for sales tax?

For the most part, sales taxes must be paid or collected by the seller. In contrast, the responsibility for reporting and paying use taxes generally falls on the purchaser.

Are groceries taxed in Arkansas?

Groceries are now subject to a reduced sales tax rate of 1.5 percent, while the standard sales tax rate is 6.5 percent.

What is exempt from sales tax in Arkansas?

Tax-exempt goods Some goods are exempt from sales tax under Arkansas law. Examples include prescription drugs, purchases made with food stamps, and some farming equipment.

Is labor subject to sales tax in Arkansas?

Are services subject to sales tax in Arkansas? “Goods” refers to the sale of tangible personal property, which are generally taxable. “Services” refers to the sale of labor or a non-tangible benefit. In Arkansas, specified services are taxable.

How much will my sales tax be in Arkansas?

6.5%The state general sales tax rate of Arkansas is 6.5%. Cities and/or municipalities of Arkansas are allowed to collect their own rate that can get up to 3.5% in city sales tax.

What is the sales tax in Arkansas on a used car?

6.5%Under state law, the tax applies to any used passenger vehicle costing more than $4,000. The state sales tax of 6.5% plus any local sales taxes is due on the whole amount of a car costing more than $4,000. A car costing $4,000 or less is exempt.

Does Arkansas collect sales tax on out of state purchases?

Beginning July 1, 2019, the Arkansas Legislature will enact Act 822 of the 92nd Legislative Session which requires that on-line and other remote, out-of-state sellers collect state and local sales and use taxes in those states where the seller does not have a physical presence but where they sell and deliver their …

What all can you buy on tax free weekend?

What items are eligible? Tax -free shopping is available for clothing priced at less than $100 per item, personal computers and computer peripheral devices of up to $1,500 and school supplies of up to $50. Purchases of up to $150 for graphing calculators and $350 for computer software are also exempt from sales tax.

Can you buy online for tax free weekend?

Does the Massachusetts tax-free weekend include online purchases? Yes. As long as you order and pay for an eligible item online during the sales tax holiday, it’s tax free.