State nexus requirements. The Arkansas use tax should be paid for items bought tax-free over the internet, bought while traveling, or transported into Arkansas from a state with a lower sales tax rate. It is a transaction tax, calculated as a percentage of the sales price of goods and certain services. For tax years beginning on or after Jan. 1, 2021, Arkansas adopts single-sales factor apportionment. Businesses that operate within Arkansas are required to register for one or more tax-specific identification numbers, licenses or permits, including income tax withholding, sales and use tax (seller's permit), and unemployment insurance tax. The Arkansas sales tax is 6.5% of the gross receipts from the sales of tangible personal property and certain selected services. Customers can call 785-368-8222 for more information. Sales Tax is defined as a tax on the sale, transfer, or exchange of a taxable item or service. The development and use of paperless formats promotes efficiency, reduces processing costs and therefore, aids in reducing the overall cost of government. Arkansas state rate(s) for 2020. Name of Business (DBA) 2. By not doing so the business may face sanctions or other types of penalties. Specifically, the de minimisexemption for remote sellers will drop from $200,000 to $150,000. Energy (electricity and natural gas) used by manufacturers in the manufacturing process is taxed at 0.625% effective July 1, 2015. Sales Tax 101 for eBay Sellers. Sellers use tax is imposed on the retail sale of tangible personal property sold in Alabama by businesses located outside of Alabama which have no inventory located in Alabama, but are making retail sales in Alabama via sales offices, agents, or … The bill took advantage of Amazon's use of affiliates based in Arkansas to establish the necessary physical nexus. When calculating the sales tax for this purchase, Steve applies the 6.5% tax rate for Arkansas, plus 1.25% for Washington county and 2% for Springdale's local tax rate. Senate Bill 576 enacts both remote seller nexus thresholds and marketplace provider provisions, effective July 1, 2019. Use either the reseller’s permit ID number or Streamlined Sales Tax number. Additionally, depending on the businesses location and tax jurisdiction, localities such as counties, cities, and other districts can also add additional sales and use … Sellers Use Tax. With the help of one more payday than in the same month a year ago, Arkansas' general-revenue tax collections in November increased by $18.3 million from a … The maximum local tax rate allowed by Arkansas law is 5.5%. The Arkansas use tax is a special excise tax assessed on property purchased for use in Arkansas in a jurisdiction where a lower (or no) sales tax was collected on the purchase.. Arkansas has a statewide sales tax rate of 6.5%, which has been in place since 1935. Also, Arkansas has seen an increase in the number of out-of-state vendors that registered voluntarily under the Streamlined Sales and Use Tax Agreement and have remitted taxes ahead of … 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). In addition to the state sales and use tax, local sales  use taxes may be levied by each city or county. If you have questions or concerns regarding the interpretation, collection, and/or enforcement of Sales and Use Tax laws of another State, District, or Territory of the United States then please see the link provided below. In 2011, Arkansas passed a bill requiring Amazon to collect sales tax. And if you live outside of Arkansas but have sales tax nexus in Arkansas, you would also charge sales tax at the local sales tax rate of the buyer’s ship-to address. If you have quetions about the online permit application process, you can contact the Department of Finance and Administration via the sales tax permit hotline (501) 682-1895 or by checking the permit info website . Additionally, Jefferson County Sales & Use Tax Section can be contacted by phone at (205) 325-5195 or by email using Contact_Revenue_License_&_Tax@jccal.org.