Arkansas Bill Proposes Sales Tax Rate Reduction

• Arkansas Legislature is considering a bill to lower the state sales and use tax rate from 6.5% to 6.375%
• The lower rate would apply to tangible personal property, digital products, digital codes, and taxable services
• Food and food ingredients would still be subject to the reduced food tax of 0.125%
• The new rate would not apply to used motor vehicles, trailers, and semitrailers
• Arkansas has the third highest combined state and local sales tax rate in the nation
• The Property Tax Relief Trust Fund has a growing balance, leading some lawmakers to propose lowering the sales tax rate
• Local sales and use tax rates in Arkansas range from 0% to 5%
• Combined state and local rates range from 6.5% to 11.5% but would drop if the state rate is lowered

Source: avalara.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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