Sales and Use Tax

Vendors located and operating in Arkansas must register under the Gross Receipts Tax Law. A fifty dollar ($50) nonrefundable fee is required to register your business.

A business making sales of tangible personal property from outside Arkansas by means of sales persons, solicitors, distributors, agents, or by taking orders for sales of the same, must register under the Compensating Use Tax Law.

If an individual is purchasing items from outside of Arkansas for use, storage, distribution or consumption within State boundaries and the Arkansas use tax is not collected by the seller, the individual must register under the Compensating Use Tax Law and remit the use tax directly to the State.

For more information, access the Sales & Use Tax Section web site at: www.arkansas.gov/dfa/excise_tax_v2/st_index.html

Miscellaneous Tax

The Miscellaneous Tax Section handles various areas of taxation for the Revenue Division, including:

• Timber Processing Tax
• Severance Tax on all Natural Resources
• Cigarette Tax
• Tobacco Products Tax
• Cigarette Paper
• Imported Wine
• Wine, Liquor, and Beer Enforcement
• Amusement Tax
• Real Property Transfer Tax
• Soft Drink Tax
• Brucellosis Assessment
• Beef, Wheat, Rice and Soybean Promotions
• Merchandise Vending
• Beauty Pageant Registration Fees
• Swine Eradication Program
• Bromide and Museum Fund
• Severance Tax, Brine Tax; Beer and Liquor Tax
• Domestic Wine Tax
• Waste Tire Fee

For more information, access the Miscellaneous Tax Section web site at: www.arkansas.gov/dfa/excise_tax_v2/mt_index.html

Motor Fuel Tax

Any company requesting a gasoline or diesel fuel distribution license in Arkansas must contact the Motor Fuel Tax Section to obtain the proper application and bond forms. No sale of gasoline or diesel fuel is permitted in Arkansas without the appropriate license. For information, see below.

Motor Carrier Fuel Tax

Arkansas is a member of the International Fuel Tax Association (IFTA). All Arkansas-based motor carriers operating interstate must obtain the appropriate license. Any motor carrier based in a non-IFTA jurisdiction has the option to become a licensed and bonded user. Payments on a "per trip" basis are also authorized.

For more information, you can access the Motor Fuel Tax or Motor Carrier Fuel Tax web site at: www.arkansas.gov/dfa/excise_tax_v2/mf_index.html

Individual Estimated Tax

Estimated tax is a convenient and efficient way for anyone to pay personal income tax during the year if the tax due on an individual return is expected to be $1,000 or more. It is also designed to help those taxpayers who do not have income tax withheld from their paychecks during the year. All estimated taxes are paid in quarterly installments. The first three payments are made during the same year in which income is earned, while the last payment is made during January of the following year. Payment due dates are: May 15, June 15, September 15 and January 15.

When an extension of time for filing is filed (AR 1055), an additional estimate may be made included with the filing. This payment does not affect the underestimate penalty, but it does stop interest from accruing. To avoid penalties for underestimating a tax liability, taxpayers must pay at least 90 percent of the current year's tax liability or 100 percent of the previous tax year's liability. Since it is sometimes difficult to estimate 90 percent of a current year's tax liability, the 100-percent option is better.

For more information, access the Estimated Tax Section web site at: www.arkansas.gov/dfa/income_tax/tax_index.html

Partnerships

Every partnership doing business in Arkansas or having income from Arkansas sources must file an Arkansas Partnership Income Tax Return. An Arkansas Partnership Return Form AR1050 is required, but Federal Schedules (including K-1s) are acceptable to support income and expenses. Limited liability companies (LLCs) are treated as partnerships for income tax purposes. All resident and non-resident partners, including corporations, must report and pay taxes on any income derived from an Arkansas partnership.

For more information, access the Partnerships web site at: www.arkansas.gov/dfa/income_taxes/tax_partnership_forms.html