* See notes in category taxability page for details. The program has an annual aggregate cap of $4 million in credits; per project caps of $125,000 in credits for properties and $25,000 in credits for non-income producing properties. The second option, which provides for an increased refund of all sales and use taxes (5.875%) levied under §§ 26-52-301, 26-52-302, 26-53-106 and 26-53-107, is a discretionary incentive that may be offered by the Director of the Arkansas Economic Development Commission (AEDC) to a taxpayer who undertakes a major maintenance and improvement project to purchase and install certain machinery and equipment used directly in manufacturing and processing. 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). You stated that it was your understanding that that pursuant to Arkansas Gross Receipts Tax Rule GR-31.1 and Arkansas Code Annotated § 26-52-101 et. (A.C.A. This table lists a number of additional categories of goods and services that are exempt from Arkansas' sales tax. Homeowners in Arkansas may receive a homestead property tax credit of up to $375 per year. In Arkansas, we have a fair and pro-business tax system, bringing in companies from around the world who want to take advantage of our tax rates, exemptions and credits for their businesses. Many states have special, lowered sales tax rates for certain types of staple goods - such as groceries, clothing and medicines. The Arkansas state sales tax rate is 6.5%, and the average AR sales tax after local surtaxes is 9.26%.. States may offer exemption from corporate income, sales, use, and other taxes that they levy. 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. Arkansas’ “competitive environment” was improved significantly in the 2015 and 2017 general legislative sessions through expansions of the Arkansas “fly-away exemption” sponsored by House Revenue and Tax Committee Chairman and aviation enthusiast Joe Jett. The maximum local tax rate allowed by Arkansas law is 5.5%. It is equal to up to $375 per year and may be claimed on a homeowner’s principal place of residence. ezPaycheck Payroll Software. Sales and Use Tax Administers the interpretation, collection and enforcement of the Arkansas Sales and Use tax laws. STATE OF ARKANSAS Employee’s Withholding Exemption Certificate AR4EC Arkansas Individual Income Tax Section Withholding Branch P. O. Usage is subject to our Terms and Privacy Policy. 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. Arkansas Historic Rehabilitation Income Tax Credit (A.C.A. We read every comment! For example, a farmer in Arkansas County who sells 1,000 units of corn can expect to pay sales … The Arkansas state sales tax rate is 6.5%, and the average AR sales tax after local surtaxes is 9.26%.. To learn more, see a full list of taxable and tax-exempt items in Arkansas. 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. Capital gains are taxable as personal income in Arkansas. People choosing to move to Arkansas from another state for retirement are also eligible for the exemption. Box 8055 Little Rock, Arkansas 72203-8055 Print Full Name _____ Social Security Number _____ If approved, the measure would have exempted certain tangible personal property from ad valorem taxes. §26-52-403 provides an exemption from sales tax for new and used farm machinery and equipment. The state of Arkansas does not usually collect any sales taxes on the vast majority of services performed. The Arkansas bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Arkansas. 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. Any unused credit may be carried forward two years. Groceries are generally defined as "unprepared food", while pre-prepared food may be subject to the restaurant food tax rate. State Charities Regulation State Filing Requirements for Political Organizations State Nonprofit Corporation Filings Arkansas state filing information for tax-exempt organizations. Exemption extends to sales tax levied on purchases of restaurant meals. Long-term capital gains receive an exemption of 30%, meaning that 30 cents of every dollar are not taxable. That means you pay the same income tax rates as you do for other income in the state. A one-time $5,000 state income tax credit for the first year that the business provides its employees with a childcare facility. Use the money you save on taxes to further your mission. 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. 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