The Arkansas Department of Finance and Administration has published a handy guide explaining what’s new for sales tax in Arkansas in 2015. Here’s the recap:
Reduced rate for manufacturers under Act 1411
Eligible manufacturers may pay a reduced sales tax rate for electricity and natural gas used in manufacturing.
Tax rates for manufacturers in NAICS Code 31 through 33:
- Through June 30, 2013: 2.75%
- July 1, 2013 through June 30, 2014: 3.25%
Tax rates for manufacturers in NAICS Code 31 through 33 and Cotton Gins in NAICS 11511:
- July 1, 2014 through June 30, 2015: 1.625%
- Beginning July 1, 2015: 0.625%
Tax rates for eligible electricity generators:
- January 1, 2013 through June 30, 2013: 4.25%
- July 1, 2013 through December 31, 2013: 4.75%
- January 1, 2014 through December 31, 2014: 3.25%
- Beginning January 1, 2015: 1.625%
There has been a push to drop manufacturing sales tax rates in Arkansas for years. In addition to the previously enacted changes, new Governor Asa Hutchinson (R) has promised to institute major changes to state government during his term. Details will be revealed in his budget proposal, which will be released later this month (Washington Times).
Automated sales tax software as a service (SaaS) helps businesses pay the right rate of sales tax for all transactions. Learn more.
photo credit: Artist in doing nothing. via photopin cc
