Sales & Use Taxes

The Arkansas sales tax is 5.125% of the gross receipts from the sales of tangible personal property and some services. The tax is paid by the consumer at the point of final sale and is computed on the total consideration received without any deduction for expenses. Taxable services include sales of gas, water, electricity, telephone service and repair services. The Arkansas compensating use tax of 5.125% is levied on tangible personal property purchased from outside the state of Arkansas for use, storage, or consumption within the state of Arkansas.

Exemptions


Several exemptions from sales and use taxes exist. For a complete list, see the Arkansas Department of Economic Development (ADED) website. Sales and use tax credits may be offered through conditional incentives (see incentives section of Sherwood Economic Development site).