Arkansas is a destination-based state (sales are taxed where the buyer is located).
You can file returns and make payments online at Arkansas Taxpayer Access Point.
The state general sales tax rate is 6.5% (specialized taxes apply in some cases, such as the 10% mixed drink tax). Additional city and county local taxes apply and range from 1% to 3%. Here's a list of cities and counties with local tax rates.
The reduced food tax is 1.5% for grocery-type food items. Prepared food, candy, and soft drinks are taxed at the full rate.
Business activities that establish a minimum tax connection to the state include:
Returns are due on the 20th of the month following the end of the tax period.
The prompt payment discount is 2% on the state tax due and 2% on the local tax due, not to exceed $1,000 in a month.
A completed application for a sales tax permit and a $50 non-refundable fee is required to register new businesses. It takes approximately eight to ten working days to process the application. You’ll receive the permit in the mail.
You can find the Application for Sales and Use Tax Permit online.
10% interest is charged on underpayments or late payments. Penalties are charged as follows: