If you purchased items to be used or consumed in Arkansas but did not pay sales tax on those items, you must pay Use Tax to Arkansas. Examples of purchases where sales tax may not be collected are those made via the internet, mail order catalog or out-of-state.
What is the Use Tax rate?
The use tax rate in Arkansas is 6.50%, which is the same as the sales tax rate.
- Eligible food purchases are subject to a reduced rate of 1.5%, plus any applicable city and/or county rates where the merchandise is delivered in the state.
Where do I enter this in my account?
The Arkansas use tax is not included on your individual tax return. The Arkansas use tax is reported on the “Individual Consumer Use Tax Report” and is mailed into the state separately.
According to the Arkansas Individual Income Tax Instructions:
- “If the total use tax due is greater than $100 per month, the use tax report should be filed monthly.
- If the total use tax due is $25-$100 per month, the use tax report should be filed on a quarterly basis.
- If the total use tax due is less than $25 per month, the use tax report should be filed on an annual basis.”
For additional information, see: