The sales tax is a special tax that is levied on the price of goods or on the services as a percentage of the total amount payable to the government. The Arkansas sales tax is assessed and calculated by the state legislative while the counties and cities also impose other local taxes.
The state of Arkansas also made some changes in the sales tax rules that have been in effect since 1st July 2004 and according to that various services in Arkansas come under sales tax consideration. The services are - dry cleaning and laundry, wrecker and towing services, tattooing and electrolysis, body piercing, security and alarm monitoring, pest control services, boat storage and docking, self-storage facilities and pet grooming and kennel services. On the sale of tangible personal property in Arkansas the local taxes are imposed on the purchase based on the location of the seller's business. Local taxes on service work in Arkansas are also charged on the basis of the location where the service is actually performed.
The counties and cities in Arkansas are having the authority to enact additional use taxes and sales taxes if they are passed by the local voters of that area and there are more than 300 local taxes that are collected in the state of Arkansas. There are some regulations regarding the local taxes in the state, as they cannot exceed $25 for each 1 percent of the sales tax assessed. The local taxes in Arkansas are collected by the state and are distributed back to the local jurisdictions on a monthly basis. The goods and items consumed in the performance of the professional services are taxable in Arkansas.
There are sales tax exemptions available in Arkansas for the low-income taxpayers, whose total annual household income is less than $12,000 and they are exempted from paying the sales tax for electricity usage.
