Sales tax is a tax imposed by state and local governments on the sale of goods and services and is usually calculated as a percentage of the sale price. Sales tax is sometimes referred to as retail sales tax.
In Arkansas, sales tax is a state-imposed tax on the sale of most goods and certain services. The state sales tax rate is 6.5%, but local jurisdictions can add additional sales taxes, which can make the total sales tax rate vary depending on the specific location within the state. These local taxes can include city, county, and special district taxes. Arkansas also has a state use tax for items purchased out of state and brought into Arkansas for use, storage, or consumption. The use tax rate is the same as the sales tax rate. Certain items may be exempt from sales tax, and there are occasional sales tax holidays that temporarily exempt specific products from sales tax. It's important for businesses operating in Arkansas to be aware of and comply with the state's sales tax regulations, including proper collection and remittance of the tax to the Arkansas Department of Finance and Administration.