Arkansas Basic Business Taxes 2012
Arkansas's economic development, finance and tax organizations provide a range of incentive programs to initiate new business and commercial investment. Specific programs include no property tax, sales tax of 6 percent, and tax rebates.
2012
Corporations and public utilities are taxed at a rate from 1-6.5 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. Qualifying businesses may be eligible for a rebate or refund of the additional local tax paid on qualifying business purchases on purchase invoices that exceed $2,500. A qualifying business purchase means a purchase of tangible personal property or a taxable service for which a business may claim a business expense deduction or depreciation deduction for federal income tax purposes. Questions regarding local tax rates, or the local tax rebates in general may be addressed to the Arkansas Department of Finance and Administration - Sales and Use Tax Section at (501) 682-7105.
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 State Contact:
Arkansas Economic Development Commission
900 W. Capitol Avenue
Little Rock, AR 72201
(501) 682-1121
Incentive and tax information is provided to Area Development by each state's economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings.
Project Announcements
Sierra Group Roofing and Solar Plans Blytheville, Arkansas, Headquarters
05/26/2022
W&W|AFCO Steel Plans Little Rock, Arkansas, Fabrication Plant
04/28/2022
Bryce Corporation Expands Searcy, Arkansas, Operations
04/17/2022
Synthesia Technology Establishes Little Rock, Arkansas, Operations
04/07/2022
Most Read
-
Area Development’s 17th Annual Shovel Awards Recognize State and Local Economic Development Efforts — First Two Platinum Shovels Awarded
Q2 2022
-
The 2021 Top States for Doing Business Reflect Their Locational Advantages
Q3 2021
-
36th Annual Corporate Survey: Executives Focus on Labor, Energy, Shipping Costs
Q1 2022
-
In Focus: Demand for Industrial Land Surges
Q2 2022
-
The Evolution of the Megasite
Q2 2022
-
Five Ways for Manufacturers to Manage Global Market Volatility
Q2 2022
-
Putting Your Best Foot Forward: Presentation of Incentives Information to the Media
Q2 2022