Arkansas Basic Business Taxes 2011
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.
March 2011
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
One Capitol Mall
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
Merrill Steel Plans Osceola, Arkansas, Manufacturing Operations
08/26/2025
CANTEX Plans Nashville, Arkansas, Manufacturing Operations
08/04/2025
Amazon Plans Little Rock, Arkansas, Logistics Operations
08/01/2025
WinChoice Expands Mountain Pine, Arkansas, Manufacturing Operations
08/01/2025
L3Harris Technologies Expands Camden, Arkansas, Production Operations
07/25/2025
Mueller Streamline Expands Wynne, Arkansas, Manufacturing Operations
07/25/2025
Wayne-Sanderson Farms Establishes Danville, Arkansas, Feed Mill Operations
07/11/2025
Conveyor Technology Expands North Little Rock, Arkansas, Manufacturing Operations
06/16/2025
LaCroix Precision Optics Expands Batesville, Arkansas, Manufacturing Operations
06/09/2025
Green Bay Packaging Expands Morrilton, Arkansas, Manufacturing Operations
06/06/2025
General Dynamics Ordnance and Tactical Systems Establishes Camden, Arkansas, Operations
04/26/2025
Lexicon Expands Little Rock, Arkansas, Headquarters-Fabrication Operations
03/25/2025
Key Tronic Plans Springdale, Arkansas, Manufacturing-R&D Operations
02/15/2025
Messer Plans Berryville, Arkansas, Air Separation Operations
01/16/2025
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