Miscellaneous Tax Descriptions
1.Ad Valorem taxes
Arkansas Code Annotated §26-24-101 to 123, 26-26-1601 through 1803.
Property tax assessments on public utilities and carriers, including telecommunication providers, electric, gas and water utilities, pipeline companies, railroads, airlines, barge lines, cable television providers, motor carriers, and bus lines. The DFA is responsible for billing and collection.
2. Alcoholic Beverage Taxes
Arkansas Code Annotated §3-7-104, 3-5-409, 3-7-101, 3-5-1401
Excise tax is imposed on the first sale in the State and must be paid by the wholesaler and/or manufacturer of liquor, beer, or wine distributor making the first sale. Native Brewers and Small Farm Wineries also must pay for all barrels or gallons produced for sale in the State. This will include Malt beverages, and Hard Cider. Tax rates are:
$2.50 per gallon on high alcohol spirits, over 21% alcohol.
$1.00 per gallon low alcohol spirits containing 5% to 21% alcohol.
$0.50 per gallon on alcohol spirits containing under 5%.
$0.75 per gallon on native and imported wines.
$0.25 per gallon on Light Wine/Wine Coolers.
$0.241935 per gallon or $7.50 per barrel on Beer, Malt Beverage, and Hard Cider produced/distributed by a Native Brewery.
$0.234375 per gallon or $7.265625 per barrel on Beer, Malt Beverage, and Hard Cider purchased/distributed by Distributor/Wholesaler.
Beer-fermented liquor made from malt or any substitute and having less than 5% alcohol
Malt Beverage-fermented liquor of grain having 5% to 21% alcohol.
Hard Cider-liquor fermented from fruit and having 3%-21% alcohol.
Additional taxes levied are as follows:
On high alcohol spirits over 21% alcohol is $0.20 per case.
On low alcohol spirits under 21% alcohol is $0.05 per case.
On imported and native wine is $0.05 per case.
$0.007813 per gallon or $0.242188 barrel enforcement/inspection tax on Distributor/Wholesaler of Beer, Malt Beverage, and Hard Cider.
3. Amusement Devices Tax/Fees-
Arkansas Code Annotated §26-57-419
Levies a privilege tax on each amusement device and a license fee on each operator of an amusement device. The license is renewed on or before July 1st of each year, the amusement tax on each device is due prior to the device being placed into operation.
License Fee
Distributor or an amusement device-$25 per fiscal year
Salesman- $5 per fiscal year
Operator of 3 or fewer amusement devices-$500 per fiscal year
Operator of 4 or more amusement devices- $1,000 per fiscal year
Decal Tax
Amusement Device-$5 per device per fiscal year
Surety Bond
Distributor of an amusement device- $1,000
Operator of an amusement device- $6,000
4. Beauty Pageant
No person shall conduct a beauty pageant in Arkansas unless registered with the Department.
Registration in another state as a beauty pageant operator shall not be effective in this state.
Each registration shall expire on December 31st of each year.
A bond in which the candidate for registration shall be the principal obligator in the amount of 10,000.
5. Bingo/Raffle
Arkansas Code Annotated §23-114-101
Collected on sales by licensed distributors to authorized organizations that been in continuous existence for 5 years or more in this state.
Tax rate is $0.003 per face sold
Permit fees in addition to the tax above may apply:
Manufactures/Distributors-$2500.00
Licensed Authorized Organizations:
Annual Bingo/Raffle permit-$100.00
Temporary bingo permit-$25.00
Class I temporary raffle permit-$25.00
Class II temporary raffle permit (donated prize value less than $5,000) - $10.00
Authorized Organization” is defined as a nonprofit tax-exempt religious, educational, veterans, fraternal, service, civic, medical, volunteer rescue service, volunteer firefighter’s organization or volunteer police organization in this state. In addition, a nonprofit tax-exempt instrumentality of the United States Government is a service agency for the purpose of this definition.
6.Car Wash Water Usage Fee
Act 822 of 2019 Arkansas Code Annotated §26-57-1603
Monthly water usage fee on water used from a public water system by a car wash operator in car wash tunnels and automatic car washes.
Water usage fee is 80% of the total aggregate number of gallons and multiplying this figure by .002.
Automatic Car Wash-Car wash bay that provides a car wash using mechanical equipment that cleans the motor vehicle while the motor vehicle remains stationary.
Car Wash Tunnel- Car wash bay that provides a fully automated car wash in which the motor vehicle is moved through a tunnel by a conveyor system.
7.Casino Gaming and Sports Wagering
Casinos and casino gaming are hereby authorized in four locations within the State of Arkansas. Casino licensees may accept wagers on sporting events unless prohibited by federal law. Franchise holders will continue to accept wagers on horse and greyhound racing.
8.Cigarette, Tobacco, and Cigarette Paper Taxes
Cigarette Excise Tax
Act 180 of the 2009 Regular Session
The excise tax is levied on the first purchaser of cigarettes making a sale in the state. The tax payment is evidenced by a stamp affixed to each cigarette package. The tax rate is:
$57.50 per 1,000 cigarettes or
$11.50 per carton/ $1.15 per pack
Tobacco Products Tax
Act 180 of the 2009 Regular Session
The excise tax is levied on the first purchaser of all tobacco products, other than cigarettes, in the state. The tax rate is 68% of the manufacturer’s invoiced selling price prior to any discount or deals.
The premium cigar (Cigars that cost more than $0.7576) tax is the sum of $0.50 per premium cigar and 2% of manufacturer’s invoiced selling price prior to any discount.
Cigarette Paper Tax
Arkansas Code Annotated §26-57-1801 et seq.
The excise tax is imposed on the first purchaser of cigarette rolling papers in the state. The tax rate is $0.75 per package.
9. Construction Nonresidential Surcharge
Arkansas Code Annotated §6-55-101 et seq
Assessed by every political subdivision of this state at $0.50 per $1,000.00 of a construction on any non-residential construction permit. A maximum surcharge of $1,000.00 will be collected on each non-residential construction project receiving a permit.
10. Fantasy Sports Games
Arkansas Code Annotated §23-116-101
8% privilege tax remitted to the Department of Finance and Administration on a quarterly basis based on the game operator’s gross paid fantasy sports game revenues collected multiplied by the location percentage for Arkansas. The location percentage is determined for each paid fantasy sports game and calculated as a percentage of all entry fees collected from game participants in Arkansas divided by the total of entry fees from all game participants.
11. Promotion Assessments
Arkansas Code Annotated §2-20-406, 2-20-507, 2-35-401, 2-40-206, 2-20-606
Beef Promotion
Beef promotion assessment levies a fee of $1.00 per head of cattle sold in the State of Arkansas.
The fee is withheld from the sales proceeds and remitted by the purchaser.
Brucellosis/Bovine
Brucellosis fees are $1.00 per head of cattle sold in the state.
Catfish Feed Promotion
Catfish Feed Promotion Assessment levies a fee of $0.99 per ton of catfish feed sold in the state.
Corn and Grain Sorghum
Corn and Grain Sorghum assessment levies a fee of $.01 cent per bushel on corn and grain sorghum grown in the state.
Rice Promotion
Rice Promotion assessment levies a fee of $0.0135 per bushel on the producer and $0.0135 per bushel on the purchaser.
Soybean Promotion
Soybean Promotion assessment levies a fee of one-half percent (0.5%) on the net market value of all soybeans grown within the State of Arkansas.
Wheat Promotion
Wheat assessment levies a fee of one cent ($.01) per bushel on all wheat grown and sold in the state.
12. Real Property Transfer Tax
Arkansas Code Annotated §26-60-101
The Real Property Transfer Tax is levied on each deed, instrument, or writing by which any lands, tenements, or other realty sold shall be granted, assigned, transferred, or otherwise conveyed. The tax rate is $3.30 per $1,000 of actual consideration on transactions that exceed $100.
13. Severance Tax
Arkansas Code Annotated §26-58-101 et seq.
Natural Resources (except Natural Gas)
Tax is collected from either the producer or purchaser of natural resources and from each producer (Primary Processor) of timber in the State of Arkansas at the time of severance.
Coal, lignite, and iron ore- $0.02 per ton plus an additional $0.08 per ton on coal.
Gypsum- $0.015 per ton
Oil- 4% of the market value at the time of severance, when production averages 10 barrels or less per well per day. 5% of the market value at the time of severance, when production averages more than 10 barrels per well per day.
Salt water - $2.45 per 1,000 barrels from bromide extraction (additional brine)
Saltwater disposal fees/credits
Stone & Crushed Stone- $0.04 cents per ton of 2,000 pounds.
Timber (Pine)- $0.178 per ton
Timber (All other) - $0.125 per ton
All natural resources not specifically identified under the severance tax laws of this state- 5% of the market value at the time and point of severance.
Natural Gas Severance
Arkansas Code Annotated §26-58-101, 26-58-201
Tax is collected from the Operator/Producer on the market value of gas sold. The applicable tax rates of 1.25%, 1.5%, and 5% are dependent on the well classifications by the Arkansas Oil and Gas Commission.
14. Soft Drink Tax
Arkansas Code Annotated §26-57-901
The Soft Drink tax shall be collected by every distributor, manufacturer, or wholesale dealer on the first sale in the State of Arkansas.
Soft Drink Syrup- $1.26 per gallon of soft drink or simple syrup
Bottled soft drinks- $20.6 cents per gallon.
Powders and Bases- $20.6 cents for each gallon produced by powders or base products.
15. Telecommunications Surcharge
Arkansas Code Annotated §20-79-401, 23-17-101
Commercial Mobile Radio Service Providers- Telephone Surcharge rate of $0.02 applies to working subject telephone numbers.
Local Exchange Carriers-Telephone Surcharge rate of $0.02 applies to subject access lines
16. Waste Tire Fee (Rim Removal Fee)
Rim Removal Fee is charged upon the removal of a tire from a rim that is related to the sale of a replacement tire by a tire retailer. The fee is $3.00 if the tire replacement is new and $1.00 if the replacement tire is used. There is also levied a fee on all waste tires imported into the state of Arkansas for disposal.
Tire Type and Description
Rim Removal Fee
New Tire Replacement-$3.00 per tire*
Used Tire Replacement-$1.00 per tire*
Imported Waste Tire-$1.00 per tire*
Commercial Generator-$3.00 per tire*
*Tire retailer shall retain a five percent (5%) fee to cover administration costs.
Solid Waste Management Districts may charge a fee for the collection and disposal of specialty tires at their collection or disposal site.
17. Vending Device Decal Fees-number change only
Arkansas Code Annotated §26-57-101
Provides that a vending machine operator can elect to affix a vending device decal to any merchandise vending device and pay the applicable decal fee in lieu of reporting the Wholesale Vending Gross Receipts Tax. The law also provides that any vendor can elect to continue to report the Wholesale Vending Gross Receipts Tax on products purchased or elect to pay the regular Gross Receipts Tax on sales made through a vending device.
Decal Fees are as follows:
$93.00- requiring the insertion of $0.25 or more
$15.00- requiring the insertion of less than $0.25
$7.50- bulk vending requiring the insertion of more than $0.25
$2.50- bulk vending requiring the insertion of $0.25 or less
$30.00- manually powered coin-operated vending devices requiring the insertion of $.25 or more
Sale Tax Decal- No charge for devices continuing to pay sales tax on the products purchased for the vending devices.
