Arkansas Sales Tax

The current state sales tax rate in Arkansas (AR) is 6.5 percent. The total tax rate might be as high as 11.50 percent depending on local municipalities. A sales tax is a fee levied on the sale of certain products and services that is paid to a governing body (state or local). Sales tax was first imposed in the United States in 1921, but it can be traced all the way back to ancient Egypt, where paintings illustrate the collecting of taxes on goods. In 1935, Arkansas became the first state to enact a general sales tax. The rate has grown to 6.5 percent since then. As a business owner providing taxable goods or services, you represent Arkansas by collecting sales tax from customers and remitting it to the Department of Finance. This is a crucial aspect that should be emphasized. The Department of Finance owns any sales tax collected from residents. It is your obligation as a business owner to manage the sales tax you collect in order to stay in compliance with state rules and avoid penalties and interest.

Sales Tax Rates in Arkansas by County

In Arkansas, when do you have to charge sales tax?

If your business has a sales tax nexus in Arkansas, you must charge sales tax. In different states, the term “sales tax nexus” signifies different things. It could be having a physical site (e.g., a brick and mortar business) or having someone working for you in the state. It can also refer to having a ‘affiliate’ or ‘click through’ sales tax nexus in the case of ecommerce.

Check the Arkansas government’s sales tax website to see if you should be charging sales tax in your state.

In Arkansas, which items are exempt from sales tax?

Prescription medications, for example, are free from sales tax in Arkansas. There are also Arkansas sales tax exemptions that can be used if the seller or buyer meets specific requirements.

Check the Arkansas government’s tax website for a complete list of exemptions.

What is Arkansas known for?

Arkansas is known for its lakes, rivers, and hot springs, extreme weather and frequent storms, rice and poultry production, and the only active diamond mine in the United States.

Arkansas Fun Facts

• The name Arkansas came from the Quapaw Indians, by way of early French explorers. The explorers met a group of Indians, known as the Ugakhpah, which means “people who live downstream.”. These
• Native Americans later were called the Quapaw, also called the Arkansaw.
• The World’s Championship Duck Calling Contest is held annually in Stuttgart.
• It is illegal for the Arkansas River to rise above the Main Street Bridge in Little Rock. It is unclear how this law can be enforced.
• In November, 1932, Hattie Caraway was elected senator in Arkansas. She became the first woman in the U.S. Senate.
• Arkansas contains over 600,000 acres of lakes and 9,700 miles of streams and rivers.On July 2, 1962, Sam Walton founded opened the first Wal-Mart store in Rogers, Arkansas.47 hot springs flow from the southwestern slope of Hot Springs Mountain. About 1,000,000 gallons of 143°F flow from the springs every day.
• Mount Ida is known as the Quartz Crystal Capital of the World.
• Pine Bluff is known as the world center of archery bow production.
• Arkansas is the only state with an official State Cooking Vessel: Dutch oven.

Tourist Attractions in Arkansas

• Arkansas Alligator Farm and Petting Zoo: Farm in Hot Springs, Arkansas.
• Arkansas Arts Center: Museum in Little Rock, Arkansas.
• Big Dam Bridge: Pedestrian bridge in Little Rock, Arkansas.
• Buffalo National River: River in northern Arkansas.
• Clinton Presidential Center: Presidential library in Little Rock, Arkansas.
• Crater of Diamonds State Park: State park in Pike County, Arkansas.
• Crystal Bridges Museum of American Art: Museum of American art in Bentonville, Arkansas.
• Garvan Woodland Gardens: Botanical garden in Hot Springs, Arkansas.
• Hot Springs Mountain Tower: Tower in Hot Springs, Arkansas.
• Hot Springs National Park: National park in central Garland County, Arkansas.
• Lake Hamilton and Lake Catherine: Man-made lakes around Hot Springs, Arkansas.
• Lake Ouachita: Reservoir in western Arkansas.
• Little Rock Zoo: Zoo in Little Rock, Arkansas.
• Magic Springs: Amusement park and water park in Hot Springs, Arkansas.
• Ozark Folk Center: State park in Mountain View, Arkansas.
• Pea Ridge National Military Park: Park in Pea Ridge, Arkansas.
• Thorncrown Chapel: Chapel in Eureka Springs, Arkansas.
• Wild River Country: Water park in North Little Rock, Arkansas.