| |
< Back to Excise Tax Administration
< Back to Sales and Use Tax |
| |
| Sales and Use Tax |
| Consumer Use Tax |
| |
The Sales and Use Tax Section has developed a form for individuals to report the Use Tax on
purchases made from out of state. Use Tax is a tax on tangible personal property purchased out-of-state
and brought into Arkansas for use, storage, consumption, or distribution. The tax is
designed to assure fair competition between Arkansas businesses and out-of-state businesses.
Businesses and individuals should pay Use Tax if they:
|
- Purchased items outside Arkansas that would be taxable if purchased in Arkansas (including items from catalogues, TV advertisements, magazines, the Internet, etc.)
- Use, store, consume, or distribute these items in Arkansas, and
- Have not paid Arkansas sales tax or an equivalent amount to another state.
|
Examples of items subject to Use Tax include records, CD's, books, furniture,
jewelry, clothing, food, hunting and fishing gear, etc. These are only a few examples; all
tangible personal property purchased out of state is subject to the Use Tax.
The state Use Tax rate is the same as the Sales Tax rate, 6% (residents inside the city
limits of Texarkana the state rate is 7%. (Effective March 1, 2004) In addition, you are
required to remit the city and/or county tax for where the items are first delivered
in Arkansas. A list of tax rates for cities and counties may be obtained from the Sales
Tax Office or downloaded from their website (see below). If you legally paid sales
tax on the items in the other state, you could be entitled to a tax credit for the
tax paid to the other state against the tax due Arkansas. If you pay less than the
Arkansas tax rate to the other state, you must pay Arkansas the difference.
The Individual Consumer Use Tax Form is available in the taxpayer's state
income tax booklet, may be downloaded from the Sales and Use Tax Section's
website, or obtained by calling the Sales and Use Tax Office. If you have
further questions regarding Use Tax, you may the Sales and Use Tax Office
at (501) 682-7104. Office hours are 8:00 am to 4:30 pm.
|
| |
|
| |
| Frequently Asked Questions About Use Tax |
| |
| Use Tax is a tax on tangible personal property purchased
out-of-state and brought into Arkansas for use, storage, consumption, or
distribution. The tax is designed to assure fair competition between Arkansas
businesses and out-of-state businesses. |
| |
| Do I owe Use Tax? |
| You should pay Use Tax if you: |
| |
- Purchased items outside Arkansas that would be taxable
if purchased in Arkansas (including items from catalogues, TV advertisements,
magazines, the Internet, etc.)
- Use, store, consume, or distribute these items in Arkansas, and
- Have not paid Arkansas sales tax or an equivalent amount to another state.
|
| |
| What if I do pay tax to the other state? |
| If you legally paid sales tax on the items in the other state, you
maybe entitled to a reduction in tax for the tax paid to the other state against the
tax due Arkansas. If you pay less than the Arkansas tax rate to the other state, you
must pay Arkansas the difference. |
| |
| What are some items on which I would owe Use Tax? |
| Examples of items subject to Use Tax include records, CD's, books,
furniture, jewelry, clothing, food, hunting and fishing gear, etc. These are only a
few examples; all tangible personal property purchased out of state is subject to the
Use Tax. |
| |
| How and when do I report and pay Use Tax? |
Businesses registered with Arkansas to remit Sales Tax should remit any
Use Tax due in Column B on their monthly (quarterly or annual) reporting form.
Individual Consumer Use Tax should be reported on a monthly basis if the total tax
amount due is greater than $100 per month, on a quarterly basis if the amount due
is $25 - $100 per month, and on an annual basis if the amount due is less than $25
per month. |
| |
| What is the Use Tax rate? |
| Effective March 1, 2004. The state Use Tax rate is the same as the
Sales Tax rate, 6% (for residents inside the city limits of Texarkana, the state rate
is 7%). In addition, you are required to remit the city and/or county tax where the
items are first delivered in Arkansas. A list of tax rates
for cities and counties may be obtained from the Sales Tax and Use Tax Section
or downloaded from our website. |
| |
| What if I do not pay Use Tax? |
| Arkansas shares sales information with other states and bills
Arkansas residents for unpaid use tax, plus penalty and interest. Arkansas also
encourages out-of-state businesses to register and collect the tax voluntarily as
a convenience to their customers. If they do not we can bill their Arkansas
customers directly. |
| |
| What if I have questions? |
| If you have any other questions regarding Use Tax, you may call
the Sales and Use Tax Office at (501) 682-7104. Office hours are 8:00 am to 4:30 pm. |
