Arkansas — Sales & Use Tax

Arkansas imposes a statewide sales and use tax rate of 6.5% on the gross receipts or gross proceeds from sales of tangible personal property and certain enumerated services. This rate has been in effect since July 1, 2013. Arkansas refers to this levy as a "gross receipts tax" in its statutes. The tax applies to retailers and other sellers conducting business in Arkansas, who collect it from purchasers and remit it to the Arkansas Department of Finance and Administration. Local jurisdictions may impose additional sales and use taxes on top of the state rate.

Source: Arkansas Department of Finance and Administration – State Sales & Use Tax Rates

Arkansas continues to enforce both a $100,000 sales threshold and a 200-transaction threshold for economic nexus purposes for remote sellers and marketplace facilitators as of June 16, 2026. Under Ark. Code § 26-52-111, a remote seller or marketplace facilitator is required to collect and remit Arkansas sales and use tax if in the preceding or current calendar year, they have either (1) sales of tangible personal property, taxable services, digital codes, or specified digital products delivered into Arkansas exceeding $100,000, or (2) 200 or more separate sales transactions into the state.

Statutory authority and current enforcement

The 200-transaction prong was established by Act 822 of 2019, which codified the economic nexus standard at Ark. Code § 26-52-111. As of June 2026, the statute’s text remains unchanged and still provides for both the $100,000 sales and 200-transaction tests, connected by “or.” No subsequent acts of the Arkansas legislature, nor any regulations or bulletins from the Arkansas Department of Finance and Administration (DFA), have eliminated or superseded the transaction threshold. Legislative records and the online Arkansas Code confirm the continued presence and enforceability of both prongs.

Department guidance and practitioner confusion

While some third-party providers have reported that Arkansas was considering a move to a revenue-only standard, the authoritative published sources (the Arkansas Code and DFA guidance) do not reflect any such change. Guidance from DFA published as recently as 2025 continues to reference the dual-threshold structure. DFA has issued no legal notice or regulation to the contrary.

Unless and until Ark. Code § 26-52-111 is amended, remote sellers and marketplace facilitators should expect the $100,000 or 200-transaction standard to govern economic nexus in Arkansas.

Source: Arkansas Code § 26-52-111

Source: Act 822 of 2019 (S.B. 576), 92nd General Assembly

Arkansas imposes use tax on tangible personal property purchased out-of-state and brought into Arkansas for use, storage, consumption, or distribution when Arkansas sales tax was not collected on the purchase. The tax applies to items that would be taxable if purchased in Arkansas, including purchases from catalogues, TV advertisements, magazines, and the Internet. Taxpayers who legally paid sales tax to another state may receive a credit for that tax against the Arkansas use tax liability; if the amount paid to the other state is less than the Arkansas tax, the taxpayer must pay Arkansas the difference.

Source: Arkansas DFA Consumer Use Tax

Arkansas sales and use tax applies to all sales of tangible personal property unless a specific statutory exemption applies. In contrast, services are taxable only if specifically enumerated by law. This means tangible goods are presumed taxable, while services are presumed not taxable unless the statute lists them. Taxable services include cleaning and janitorial work, installation and repair of specific items, printing, photography, non-residential lawn care, furnishing of lodging to transient guests, admissions to amusement and entertainment events, and certain other services defined in Ark. Code § 26-52-301.

Source: Arkansas Department of Finance and Administration – Sales & Use Tax

Arkansas requires any seller obligated to collect and remit state sales or use tax—including in-state vendors, remote sellers, and marketplace facilitators meeting nexus thresholds—to register with the Arkansas Department of Finance and Administration (DFA) and obtain a Gross Receipts Tax Permit.

Who must register:

• In-state sellers of tangible personal property or taxable services must register before conducting taxable sales in Arkansas.
• Remote (out-of-state) sellers and marketplace facilitators are required to register if, during the current or previous calendar year, their total sales of taxable goods and services for delivery into Arkansas exceed $100,000 or 200 transactions. This threshold is explicitly set by statute. Registration is mandatory once nexus is established, regardless of physical presence.
• Marketplace sellers (those selling exclusively through a registered marketplace facilitator) are not required to register or file Arkansas sales and use tax returns for those marketplace-only transactions; the facilitator bears the registration and collection obligation under Arkansas law. If the seller also makes direct sales into Arkansas, they must register and collect on those direct sales.

Application process and fees:

• Registration is completed by filing Form AR-1R (Combined Business Tax Registration) online via the Arkansas Taxpayer Access Point (ATAP). This is the standard, required method for both in-state and remote applicants.
• A $50 non-refundable permit application fee is charged for each new permit. This one-time payment covers permit issuance and does not recur upon renewal; the permit remains valid until the account is closed by the taxpayer or revoked by DFA. There is no periodic renewal requirement under current DFA procedure.

Summary:

• All sales and use tax registrants—whether located within Arkansas or outside—use the same online application (Form AR-1R through ATAP).
• The fee, form, and process are identical for in-state sellers, remote sellers, and marketplace facilitators (other than the economic nexus registration trigger for out-of-state businesses).
• Marketplace-only sellers (with no direct sales) are explicitly exempted from registration and filing when the marketplace facilitator is registered and remits tax on their behalf.

Key registration procedures, permit fees, form references, and marketplace distinctions are established by Arkansas DFA’s official guidance and codified economic nexus rules. Arkansas Code § 26-52-111 is the governing statute for remote seller and facilitator nexus, while administrative DFA publications and registration instructions provide process details.

Source: Arkansas DFA – Starting a New Business in Arkansas Source: Arkansas DFA – Register a Remote Seller or Marketplace Source: Ark. Code § 26-52-111

Arkansas sales and use tax returns are due on the 20th day of the month following the close of the reporting period, regardless of filing frequency. The Arkansas Department of Finance and Administration (DFA) assigns each taxpayer's filing frequency—monthly, quarterly, or annual—based on the business's sales tax liability. The DFA generally assigns more frequent filing to businesses with higher tax liability. Once assigned, the filing frequency typically remains constant unless the business's sales volume changes significantly.

Filing frequencies and due dates:

• Monthly filers: Returns and payment for each month are due by the 20th of the following month (e.g., January sales tax is due February 20).
• Quarterly filers: Returns and payment are due April 20, July 20, October 20, and January 20.
• Annual filers: Returns and payment for the entire calendar year are due January 20 of the following year.

If the 20th falls on a weekend or state holiday, the due date shifts to the next business day.

Prepayment requirements: Businesses with substantial sales tax liability must make two monthly prepayments in addition to filing the monthly return. The DFA publishes a calendar of specific prepayment dates (typically around the 12th and 24th of each month) for affected taxpayers. Businesses subject to prepayments will be notified by the DFA; the requirement is based on prior tax liability.

Zero returns: All registered sellers must file a return for each assigned period even if no sales tax was collected during that period. Failure to file a zero return can result in penalties.

Timely filing discount: Arkansas offers a 2% discount on the state sales tax due for timely filing and payment, capped at $1,000 per month. Local jurisdictions may also allow a 2% discount, with a maximum of $1,000 per city and county reported. This discount applies only if the return and payment are both submitted on or before the due date.

Source: Arkansas DFA – Sales & Use Tax Due Dates

Arkansas eliminated its state sales and use tax on food and food ingredients effective January 1, 2026, under the Grocery Tax Relief Act (Act 1008 of 2025, originally House Bill 1685). The state rate on qualifying food is now 0.000%. Local sales and use taxes on food and food ingredients remain in effect and continue to be collected by sellers.

Statutory definition of food and food ingredients

Under Ark. Code § 26-52-103(17)(A), "food" and "food ingredients" mean "substances, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value."

The statute excludes candy, soft drinks, alcoholic beverages, tobacco, and dietary supplements from the definition of "food and food ingredients." Ark. Code § 26-52-103(17)(B). Those items remain subject to the full 6.5% state sales tax rate plus local taxes.

Prepared food remains taxable at the full rate

The exemption does not apply to "prepared food." Prepared food is taxed at the full 6.5% state rate plus applicable local rates. However, Ark. Code § 26-52-317(a)(2) excludes two categories from the definition of "prepared food":

• Food that is only cut, repackaged, or pasteurized by the seller; and
• Eggs, fish, meat, and poultry, and foods containing these raw animal foods requiring cooking by the consumer to prevent food-borne illnesses as recommended by the United States Food and Drug Administration in its 2005 Food Code, § 3-401.11, as it existed on January 1, 2007.

This distinction is critical for grocery stores and mixed vendors: rotisserie chicken prepared and heated in-store is prepared food (taxable at 6.5% state plus local), while fresh chicken cut and repackaged by the grocer qualifies as food and food ingredients (exempt from state tax, but local tax applies).

Historical rate reductions

Arkansas reduced its food tax incrementally over nearly two decades:

• Prior to 2007, food was taxed at the general sales tax rate (6.0% at that time).
• In 2007, the rate was reduced to 3.0%.
• Further reductions followed in 2009 and 2011.
• Effective January 1, 2019, the rate was reduced to 0.125% when statutory conditions tied to state budget thresholds were satisfied under Ark. Code § 26-52-317(a).
• Effective January 1, 2026, the state rate was eliminated entirely (0.000%).

The 0.125% rate that ended December 31, 2025, was levied under Amendment 75 of the Arkansas Constitution and dedicated to the Arkansas Game and Fish Commission and the Department of Parks, Heritage and Tourism. Act 1008 exempted food and food ingredients from the state gross receipts tax while preserving the constitutional allocation mechanism for other taxable items.

Local taxes on food remain in effect

Act 1008 explicitly provides that sales of food and food ingredients continue to be subject to local sales and use taxes. Ark. Code § 26-52-317(d)(2) states: "The gross receipts or gross proceeds derived from the sale of food and food ingredients shall continue to be subject to... all municipal and county gross receipts taxes." Cities and counties retain authority to tax food. Local rates vary by jurisdiction. Sellers must configure systems to apply a 0.000% state rate and the applicable local rate(s) based on destination or location of sale.

Compliance requirement

Sellers must distinguish food and food ingredients (state-exempt, local-taxable) from prepared food, candy, soft drinks, and other non-qualifying items (state-taxable at 6.5% plus local). Misclassification of items can result in underreported or overreported tax liability and audit exposure.

Source: Arkansas Department of Finance and Administration – State Sales & Use Tax Rates

Source: HB1685 Bill Information – Arkansas State Legislature

Direct answer Under Arkansas law, a marketplace facilitator is a person or platform that both (1) lists or advertises taxable items for sale in a "forum" and (2) either directly or indirectly collects payment from the purchaser and transmits that payment to the marketplace seller. Only an entity performing both functions qualifies as a marketplace facilitator with a duty to collect and remit sales or use tax. Ancillary functions such as payment processing alone or fulfillment alone do not suffice.

Why Arkansas Code § 26‑52‑103(21) defines “marketplace facilitator” as an entity that: (A) lists or advertises tangible personal property, taxable services, a digital code, or specified digital products for sale in a “forum”—broadly defined to include physical or electronic locations; and (B) either directly or indirectly collects payment from the purchaser and transmits the payment to the seller, regardless of whether the entity receives consideration for that service. Only when both prongs are met does the marketplace entity shift the obligation to collect and remit tax under § 26‑52‑111(a)‑(b).

Payment processors that do not list or promote taxable products and only handle transactions, or fulfillment providers that only store and ship goods, do not meet the statutory dual-prong definition and therefore are not marketplace facilitators for Arkansas collection purposes.

Source support

• Authority source: Arkansas Code § 26‑52‑103(21), definition of “marketplace facilitator.”

Source: Ark. Code § 26-52-103(21)

• Authority/source: Arkansas Code § 26‑52‑111(a)-(b), which imposes the tax collection duty on marketplace facilitators and clarifies that sales made through a marketplace facilitator are treated as sales of the facilitator—not the seller—for threshold determination.

Source: Ark. Code § 26-52-111

Caution / review status Not yet human confirmed. Recommendation: Reviewer should verify that nothing in DFA regulations, bulletins, or administrative rulings expands or modifies the dual-prong requirement, and to confirm that mere payment processing or fulfillment is not treated as facilitation by practice.

Arkansas uses destination-based sourcing to determine which local sales and use taxes apply to a transaction. Under this system, a seller generally applies the tax rate based on the location where the purchaser receives the tangible personal property or taxable service, not the location of the seller. This sourcing framework applies to both state and local sales and use taxes administered by the Arkansas Department of Finance and Administration.

General sourcing hierarchy

Arkansas Code § 26-52-521 and implementing regulation 26 CAR § 30-1207 establish a cascading hierarchy of sourcing rules. A sale is sourced in the following order:

1. Receipt at seller's business location. If the purchaser receives the tangible personal property or service at the seller's business location, the sale is sourced to that location. For example, if a customer picks up a repaired motor at a shop in Jacksonville, the seller collects Jacksonville city sales tax, Pulaski County sales tax, and the state sales tax.

1. Delivery to a specified address. When the purchaser does not receive the property or service at the seller's business location, the sale is sourced to the location of receipt by the purchaser (or the purchaser's donee), including the location indicated by delivery instructions known to the seller. For example, if the same Jacksonville repair shop ships the repaired motor by common carrier to Conway, the seller collects Conway city sales tax, Faulkner County sales tax, and the state sales tax.

1. Address from seller's business records. If the first two rules do not apply, the sale is sourced to the address for the purchaser available from the seller's business records maintained in the ordinary course of business, when use of this address does not constitute bad faith.

1. Address obtained during consummation of sale. If the first three rules do not apply, the sale is sourced to the address obtained during consummation of the sale, including the address of the purchaser's payment instrument, if no other address is available and use of this address does not constitute bad faith.

1. Seller's address as fallback. If none of the preceding rules apply, the sale is sourced to the address from which the tangible personal property was shipped or from which the service was provided (ignoring any location that merely provided the digital transfer of the product sold).

When destination sourcing took effect for local taxes

The Arkansas Department of Finance and Administration's official guidance states that "after January 1, 2008, local sales tax collections changed to be based on the 'point of delivery' of the merchandise." If possession of merchandise does not occur at the store location, tax is based on the delivery address to which the merchandise is being delivered, shipped, or mailed. Sellers who only sell merchandise and perform services at their store location and do not deliver or ship any merchandise to customers continue to collect local taxes based on the store location; delivery occurs at the store in those cases.

Taxable services and destination sourcing

Destination sourcing also applies to taxable services. When taxable services are performed in Arkansas and the customer takes receipt of the service in Arkansas, the transaction is subject to Arkansas gross receipts tax at the location of receipt. However, if taxable services are performed in Arkansas but the customer takes receipt of the service outside of Arkansas, no Arkansas gross receipts tax is due. For example, a landscaping company performing services in Monticello collects state sales tax, Monticello sales tax, and Drew County sales tax, because the customer receives the service at the Monticello location.

Motor vehicles, trailers, and semitrailers

Sales of motor vehicles, trailers, and semitrailers that require licensing are sourced differently. When sold to a person who resides in Arkansas, the sale is sourced to the residence of the purchaser as indicated at the time of registration and application for certification of title, not to the location of delivery or the dealer's location. The local sales tax levied by the city and county of the purchaser's residence applies.

Exception: florists

Ark. Code § 26-52-521(i) provides that the destination sourcing rules do not apply to florists. The statute does not specify an alternative sourcing rule for florists.

Compliance and rate determination

Because Arkansas has over 300 local taxing jurisdictions—cities and counties—with combined rates ranging from the 6.5% state-only rate to over 11% in some locations, sellers must determine the correct rate for the specific delivery address. The Arkansas Department of Finance and Administration publishes city and county tax rate listings and mails rate change notices to registered taxpayers on a quarterly basis. Sellers may also access rate information on the DFA's website or use the department's resources to determine whether a delivery address is within an incorporated city (where city tax applies) or in an unincorporated area (where only county and state taxes apply).

Receipts factor sourcing distinguished from sales tax sourcing

Arkansas adopted market-based sourcing for corporate income tax apportionment purposes for sales of services and intangible property under Act 719 of 2025 (S.B. 567), effective for tax years beginning on or after January 1, 2026. That legislation changed receipts factor sourcing rules for income tax purposes; it did not alter the destination-based sales and use tax sourcing framework under Ark. Code § 26-52-521, which remains in effect.

Source: Arkansas Code § 26-52-521 and 26 CAR § 30-1207, as referenced in 26 CAR § 30-1224

Source: 26 CAR § 30-1207 – Determination of tax due — Sourcing transactions

Source: Arkansas DFA – Sales and Use Tax FAQs (Sourcing of Sales When Collecting Local Sales Taxes)

Arkansas taxes services only when specifically enumerated by statute. Unlike tangible personal property, which is presumptively taxable unless exempted, services are presumptively not taxable unless the statute or regulation lists them. The Arkansas Department of Finance and Administration's regulations at 26 CAR § 30-502 and related provisions enumerate and define the specific categories of taxable services under Arkansas law.

Services enumerated in the regulations

Regulation 26 CAR § 30-502 identifies taxable services by reference to Arkansas Code § 26-52-301(3), § 26-52-301(6), § 26-52-301(7), and § 26-52-316. The regulation states that the following services are subject to Arkansas gross receipts tax:

Installation, alteration, cleaning, refinishing, replacement, and repair services. The services enumerated in Arkansas Code § 26-52-301(3)(D), including the service of providing cleaning or janitorial work, are taxable. According to regulation 26 CAR § 30-1003(c)(2)(B), the cleaning of the interior or exterior of any building or structure, including vents, ducts, windows, walls, ceilings, or floors, is a taxable service. The regulation further clarifies at 26 CAR § 30-1003(c)(3)(A) that the initial installation, alteration, addition, cleaning, refinishing, replacement, and repair of motors, electrical appliances, machines, and other mechanical items are taxable. Examples given include initial installation in existing structures and the repair or replacement of dishwashers, stoves, ovens, refrigerators, heating and air conditioning units, garbage disposals, water heaters, ceiling fans, garage door motors, electric signs, washing machines, and dryers.

Additional services listed in the regulation. Regulation 26 CAR § 30-502(b) enumerates additional services subject to gross receipts tax, including:

• Service of providing transportation or delivery of money, property, or valuables by armored car (26 CAR § 30-502(b)(1));
• Furnishing of camping spaces or trailer spaces at public or private campgrounds (26 CAR § 30-502(b)(20));
• Locksmith services, defined at Arkansas Code § 26-52-316 as repairing, servicing, or installing locks and locking devices, whether incorporated into real property, incorporated into tangible personal property, or separate and apart from other property, and including unlocking locks or locking devices for another person. Locksmith services do not include the initial installation of locks by a contractor in new construction (26 CAR § 30-502(b)(21));
• Pet grooming and kennel services (26 CAR § 30-502(b)(22)).

The regulation notes that dues and fees paid to health spas, health clubs, and fitness clubs are subject to gross receipts tax (26 CAR § 30-502(c)).

The regulation also addresses service contracts, maintenance agreements, and extended warranties. These are taxable when they provide in whole or in part for the future performance of or payment for services that are subject to gross receipts tax. The seller of the contract, or the seller's designated agent, collects sales tax on the purchase price of the contract. For example, home warranty contracts are taxable on the purchase price when sold. Labor and tangible personal property provided under the warranty after purchase are not subject to sales tax. If the seller of a taxable contract allows the purchaser to pay for the contract in monthly or other periodic installments, the seller may report and remit sales tax on the periodic payments (26 CAR § 30-502(d)).

The regulation cross-references additional taxable service rules at 26 CAR §§ 30-502 through 30-519, indicating that the enumeration of taxable services in Arkansas is distributed across multiple regulatory sections.

Key exceptions

The regulations identify limited exceptions to taxability for certain enumerated services. Regulation 26 CAR § 30-502 does not provide the full text of the statutory exceptions codified in Arkansas Code § 26-52-301, but refers practitioners to the underlying statute for those provisions. The Arkansas Department of Finance and Administration has published guidance indicating that certain repair and installation services are exempt from gross receipts tax when they meet specific statutory conditions, such as:

• Coin-operated car washes, defined in regulation 26 CAR § 30-1003 as car washes in which the car washing equipment is activated by the insertion of coins into a slot or receptacle and the labor of washing the exterior of the car or motor vehicle is performed solely by the customer or by mechanical equipment.

The regulation at 26 CAR § 30-1003(b)(1) also clarifies that certain services are not taxable: the initial installation, alteration, addition, cleaning (with exceptions noted in the cleaning services subdivision), refinishing, replacement, or repair of nonmechanical, passive, or manually operated components of buildings or other improvements or structures affixed to real estate—including walls, ceilings, doors, locks, windows, glass, heat and air ducts, roofs, wiring, breakers, breaker boxes, electrical switches and receptacles, light fixtures, pipes, plumbing fixtures, fire and security alarms, intercoms, sprinkler systems, parking lots, fences, gates, fireplaces, and similar components that become part of real estate after installation—are not taxable services. This means, generally, that services performed on nonmechanical components or fixtures within or on a building or other improvement to real estate are not taxable.

Services subject to the standard rate

All enumerated taxable services in Arkansas are subject to the 6.5% state gross receipts tax plus applicable local taxes. Arkansas does not impose a reduced rate structure for taxable services. The rate and base rules that apply to tangible personal property sales apply equally to taxable services unless the statute or regulation provides otherwise.

Scope of taxable services compared to tangible personal property

The Arkansas taxable services enumeration is narrow compared to many states. The regulation makes clear that the enumeration is limited: services not specifically listed in the statute or regulation are not subject to Arkansas gross receipts tax. Professional services—such as legal, accounting, consulting, engineering, or architectural services—are not enumerated and therefore are not taxable. Similarly, many information services, software-as-a-service offerings (unless they involve a taxable service such as data processing or telecommunications), and general business consulting are not taxable in Arkansas because the statute does not enumerate them.

Contractor treatment and interaction with taxable services

Regulation 26 CAR § 30-1003 provides detailed guidance on how contractors are treated under Arkansas gross receipts tax law. All contractors are deemed to be consumers or users of all tangible personal property, including materials, supplies, and equipment used or consumed by them in performing any contract. The sales of all such property to contractors are taxable sales. The contractor must pay tax at the time of purchase or pay tax at the time the materials are withdrawn from stock for use in the performance of the contract. However, if the performance of a contract or any portion thereof by a contractor constitutes the performance of a taxable service under the terms of Arkansas Code § 26-52-301(3), then the entire gross proceeds or gross receipts derived from the performance of the taxable services—including the sale or transfer of title or possession of any materials or supplies used or consumed in performing the taxable services—are subject to the tax imposed by the chapter. Contractors are entitled to receive a gross receipts tax credit, tax offset, or refund for any gross receipts tax or use tax paid on materials or supplies used or consumed by them that become a part of real estate in performing taxable services.

The practical effect of this framework is that labor for the installation of nonmechanical building components (such as drywall, roofing, or framing) is not taxable, and the contractor pays tax when purchasing the materials. But labor for the installation of mechanical items (such as HVAC units, appliances, or electrical machines) is taxable as an enumerated service, and the entire charge—including materials and labor—is subject to gross receipts tax.

Source: 26 CAR § 30-502 – Services subject to tax — Taxable services

Source: 26 CAR § 30-1003 – Persons required to collect and remit tax — Specific businesses — Contractors

Arkansas allows local jurisdictions—cities, counties, and certain special districts—to impose their own sales and use tax rates in addition to the 6.5% statewide rate. Local taxes are authorized by Ark. Code §§ 26-75-201 et seq. (counties), 26-74-201 et seq. (municipalities), and other statutes. Local taxes are established via ordinance and require voter approval, and rates are subject to frequent change based on quarterly updates from the Arkansas Department of Finance and Administration (DFA).

Material updates effective July 1, 2026 As of July 2026, DFA has announced several city and county local sales and use tax changes, including:

• Rate increases: Van Buren (to 2.5%), El Dorado (to 1.75%)
• Rate decreases: Cross County, Jackson County (as detailed in the DFA publication)
• Boundary changes or annexations: Lakeview, Siloam Springs, Decatur, Pea Ridge, Garfield, Highfill, Ozark, Powhatan
• New or enacted taxes: Chester, Perry

Practitioners must review the DFA’s "Recent Changes for Local Taxes" bulletin for the exact effective dates, rates, and jurisdictional boundaries as these changes can materially affect tax calculation for transactions sourced to affected locations. These rate changes and jurisdictional updates are effective July 1, 2026, and are reflected in the most recent DFA rate tables and address lookup tools.

Calculation and compliance Retailers and remote sellers must collect the combined rate (state plus all applicable local taxes) based on destination sourcing rules. For transactions delivered within a city, both city and county taxes apply. For sales delivered into unincorporated areas, only the county rate applies. Special district taxes may apply in certain locations. Rate accuracy must be checked prior to each billing or tax return cycle.

Official local rate schedules and lookup tools The Arkansas DFA publishes quarterly “City and County Sales & Use Tax Rates” tables and maintains an up-to-date “Recent Changes for Local Taxes” page. Sellers should consult both, as the current quarter's rates (including the July 1, 2026 changes) govern reporting and tax calculation for affected periods. Address-specific lookup is available for sourcing questions.

• DFA – City and County Sales & Use Tax Rates
• DFA – Recent Changes for Local Taxes
• DFA – Streamlined Sales Tax Address Lookup

Practitioner responsibility Local Arkansas sales and use tax rates are subject to change at the start of each calendar quarter. As of July 2026, sellers and preparers must incorporate all published changes when determining rates for billing, collections, and remittance.

Source: DFA – Recent Changes for Local Taxes

Arkansas’s statewide sales and use tax rate has changed multiple times since the tax was first imposed in 1935. This timeline summarizes the major rate changes, with effective dates and statutory authority, for use in audit defense, refund claims, and compliance for prior periods. Each change cited below is supported by primary legislative sources published by the Arkansas General Assembly and Department of Finance and Administration.

| Effective Date | State Tax Rate | Enabling Authority | |-----------------------|---------------|-------------------------------------------------| | May 1, 1935 | 2.0% (temporary, 2 years) | Act 233 of 1935 (first Sales Tax Act) | | March 26, 1941 | 2.0% (made permanent, new base statute) | Act 386 of 1941 (Gross Receipts Act) | | July 1, 1957 | 3.0% | Act 19 of 1957, voter referendum | | April 1, 1983 | 4.0% | Act 63 of 1983 (Ex. Sess.) | | April 1, 1991 | 4.5% | Act 3 of 1991 | | January 1, 1997 | 4.625% | Amendment 75 (0.125% added, for conservation) | | July 1, 2004 | 6.0% | Act 107 of 2003, Act 272 of 2003 and subsequent acts | | October 1, 2011 | 6.0% (food rate reduction) | Enabling acts for food – various amendments, see DFA | | July 1, 2013 | 6.5% (current standard rate) | Amendment 91 (2012 ballot, 0.5% for highways) |

Statutory and constitutional authorities

• The first sales tax was a two-year emergency levy via Act 233 of 1935, set at 2% but not renewed at that rate. Permanent sales tax authority came via Act 386 of 1941 (“Gross Receipts Act”), and all subsequent changes have built on that structure.
• Major increases occurred in 1957 (Act 19, public referendum), 1983 (Act 63), and 1991 (Act 3). Conservation and highway add-ons were adopted via constitutional amendments (Amendment 75 in 1996 and Amendment 91 in 2012).
• Food and food ingredient rates were reduced via several acts beginning in 2007 (food history separately detailed in this guide).

Context and use Practitioners should consult the cited acts and amendments for precise language and applicability to individual tax periods. Rate changes can impact exposure on audit for under- or overcollection, claims for overpayment/refund, resale/resale certificate timing, and historical nexus analyses.

Source: Arkansas General Assembly: sales tax rate summary and session law links (see Appendix A)

Arkansas sellers may accept exemption and resale certificates in lieu of collecting sales and use tax when a transaction qualifies for exemption under state law. Acceptance of a substantially complete and valid certificate—so long as it is accepted in good faith—generally shifts tax liability from the seller to the purchaser. However, the scope, required content, buyer and seller obligations, acceptance of certificates from out-of-state purchasers, and recordkeeping procedures all have statutory and regulatory foundations that must be closely followed.

Certificate form, content, and format The principal statutory authority is Ark. Code § 26-52-517, with detailed requirements in DFA Regulation 26 CAR § 30-1117. The standard Arkansas resale certificate is DFA Form ST391, which requires the purchaser’s name, address, permit or exemption number, type of exemption claimed, general description of goods or services, seller’s name, signature (manual or electronic), and date. While Arkansas law does not explicitly specify electronic or scanned certificate acceptance, DFA Form ST391 instructions clarify that sellers may accept facsimile (fax), electronic, or paper copies, provided they are complete and legible. For other types of exemptions (government, manufacturing, agriculture, etc.), DFA prescribes distinct forms with similar informational content required.

Good faith acceptance and seller diligence A seller is relieved of sales tax liability, according to Ark. Code § 26-52-517(a), if a certificate is accepted in good faith and is regular on its face, properly completed, and indicates the reason for exemption. "Good faith" implies that the seller should not knowingly accept a false or inapplicable certificate, or one for an obviously taxable transaction. Regulation 26 CAR § 30-1117 requires that the certificate identify the claimed exemption, supply all necessary information, and be completed by the purchaser at or before the time of sale. Sellers do not have a statutory obligation to verify every exemption or permit, but the DFA and best practice suggest confirming, when feasible, that the purchaser holds a valid Arkansas sales tax permit (for resale claims) or the appropriate exemption authorization. If a seller knows, or has reason to know, that a claimed exemption is improper, liability remains with the seller.

Out-of-state purchasers and streamlined sales tax certificate acceptance Arkansas is a full member of the Streamlined Sales and Use Tax Agreement (SSUTA), and, by regulation and DFA guidance, accepts properly completed resale certificates from out-of-state purchasers, including those using the Multi-State Uniform Sales & Use Tax Certificate as described in DFA's own instructions. Purchasers may provide a resale certificate using an Arkansas permit number or a number from another SSUTA member state; the specific fields and endorsements required are set by DFA Form ST391 and the DFA’s published instructions. While Ark. Code § 26-52-517 and DFA regulations are controlling, the method for accepting multi-state certificates is set by DFA publications referencing Arkansas’s SSUTA status.

Recordkeeping and audit defense Sellers must retain exemption and resale certificates, as well as any related correspondence, for at least six (6) years from the date of sale, consistent with Arkansas’s general statute of limitations for sales tax audits. Certificates may be stored electronically and must be furnished to the DFA upon demand. If a valid certificate is not produced at audit, the sale is presumed taxable and the seller may be assessed tax, interest, and penalties. Sellers should implement sound record retention, tracking, and retrieval systems to ensure defense in audits.

Source: Ark. Code § 26-52-517 Source: 26 CAR § 30-1117 Source: Arkansas DFA – Form ST391 instructions

As of June 2026, Arkansas’s operative marketplace facilitator definition and collection duty are governed by statutory law—principally Ark. Code § 26-52-103(21) and § 26-52-111—and no new DFA regulations, bulletins, or reported administrative rulings have been published since 2021 that alter or expand the two-prong test.

Statutory definition reaffirmed The Arkansas Code continues to require that a marketplace facilitator must list/advertise sales in a forum and directly or indirectly collect, process, or facilitate payment and transmit it to the seller. Both prongs remain necessary for the collection duty to attach; neither payment processing alone nor fulfillment alone satisfies the full definition.

DFA regulatory and administrative guidance A review of Arkansas DFA Excise Tax Regulations and official Excise Tax Bulletins published between 2021 and June 2026 reveals no new rulemaking or interpretive bulletins further clarifying or expanding the statutory meaning of "marketplace facilitator." DFA’s published Marketplace Facilitator guidance page (last accessible at a now-defunct URL) has content consolidated into DFA’s main Sales & Use Tax information page as of 2026. DFA’s online FAQ, and the Code of Arkansas Rules, contain no statements treating payment processors or fulfillment service providers as facilitators absent both listing/advertising and payment/transaction activities.

No reported divergences in enforcement There are no published court opinions or administrative law judge (ALJ) decisions, nor DFA administrative rulings or bulletins, that interpret the law to sweep in payment processors (e.g., credit card networks) or "ship-to-store" fulfillment providers as marketplace facilitators based solely on one prong. DFA’s public FAQ and documents consistently refer back to the statutory text. Practical enforcement appears aligned with the statutory two-prong criteria: a provider must both list/advertise and process payment to be considered a marketplace facilitator.

Summary As of June 2026, no Arkansas regulatory, bulletin, FAQ, or court guidance extends the marketplace facilitator definition beyond the statutory two-prong framework, or treats single-function vendors (e.g., payment or fulfillment only) as facilitators. No administrative or interpretive trend diverges from this reading in published sources. Practitioners should monitor for future DFA bulletins or court cases, but statutory text governs.

Source: Ark. Code § 26-52-103(21) Source: Ark. Code § 26-52-111 Source: Arkansas DFA – Sales & Use Tax