- Tax Exemption Enactment: Arkansas H.B. 1685, effective January 1, 2026, exempts gross receipts from the sale of food and food ingredients from state sales and use taxes, replacing the previous reduced tax rate of 1.375% on groceries.
- Definition Clarifications: The legislation specifies that the definitions of “food” and “food ingredients” do not include prepared food, which remains taxable. Prepared food is defined as items that are not merely cut, repackaged, or pasteurized, and excludes certain raw animal foods and specific categories like candy and soft drinks.
- Compliance Advisory: Businesses involved in the sale or purchase of food and food ingredients in Arkansas should review their invoicing and tax compliance processes to ensure they are prepared for the upcoming state-level exemption.
Source PwC
Latest Posts in "United States"
- Kentucky Drops Transaction Threshold, Taxing Data Brokering from August 2026
- Louisiana Second Amendment Weekend Sales Tax Holiday on Firearms and Hunting Supplies
- Sales Tax on Nonprofit Organizations
- Schnucks Settles $6.3 Million Suit Over Loyalty Rewards Sales Tax Overcharges
- New York Judge Upholds Sales Tax on Cloud Software Platform
