Area Development Arkansas Resource Page
Basic Business Taxes
Corporations and public utilities are taxed at a rate from 1 percent to 6.5 percent, as net taxable income increases.
Sales and use taxes:
The state sales tax rate in Arkansas is 6 percent. The tax is imposed on the sale of tangible personal property and taxable services.
Local sales and use taxes:
In addition to the state sales and use tax, local sales and use taxes may be levied by each city or county. Local taxes have a cap of $25 per each 1 percent of tax assessed per "single transaction." The definition of "single transaction" is determined by each local taxing jurisdiction. These taxes are collected by the state and distributed to the cities and counties each month.
Property tax:
The state imposes no property tax; however, cities, counties, and special taxing districts do. Real and personal property financed by industrial revenue bonds and general obligation bonds is exempt from property taxes during the lease-amortization period in which a local government retains title to the property. Payments by industrial concerns to local governments in lieu of property taxes are generally encouraged and negotiated between the parties involved. Negotiations for payments in lieu of taxes must be based on at least 35 percent of the assessed value.
Arkansas Economic Development Commission
One Capitol Mall
Little Rock, AR 72201
(501) 682-1121
