• Taxestax defined image by Christopher Walker from Fotolia.com
  
  Arkansas sales tax law allows cities and counties in Arkansas to impose local taxes as "a sales and use tax" if the voters in their jurisdiction pass such a law. The state collects the tax and then redistributes it to the cities and counties on a monthly basis.
  
  

Authority

• Cities and counties are authorized by state law to impose local and use taxes. No cap applies to sales taxes and retailers impose these taxes for the full amount on all transactions. Arkansas state law defines a single transaction as "any sale of tangible personal property or taxable service reflected on a single invoice, receipt, or statement for which an aggregate sales or use tax amount has been reported or remitted to the state for a single local taxing jurisdiction."
  
  

Rates

• With seventy five counties, Arkansas law provides for more than 300 local taxes. Of these taxes, each county has a different tax rate with the maximum sales tax rate at 3.5 percent and the minimum at zero percent. These rates are subject to change.
  
  

Disclaimer

• This article is intended to give a basic overview of Arkansas sales tax laws. It is not intended to give legal advice. To determine how the facts of your situation apply to Arkansas law, consult a qualified attorney licensed to practice law in the state of Arkansas.