Miscellaneous Tax Descriptions
1. Alcoholic Beverage Taxes
Arkansas Code Annotated §§3-7-104, 3-5-409, 3-7-11
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. 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 alcoholic spirits containing under 5%
$0.75 per gallon on native and imported wines.
$0.25 per gallon on Wine Coolers.
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.
2. 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 of 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
3. 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.
Cigarette Paper Tax
Act 1045 of 1987 Regular Session
The excise tax is imposed on the first purchaser of cigarette rolling papers in the state. The tax rate is $0.25 per package.
4. Construction Nonresidential Surcharge
Act 474 of 1999
Assessed by every political subdivision of this state at $.50 per $1,000.00 of a construction on any non-residential construction permit.
5. 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
Brucellosis fees are $1.00 per head of cattle sold in the state.
Catfish Feed Promotion
Catfish Feed Promotion Assessment levies a fee of $.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, effective date of this assessment is July 1, 1998.
Rice Promotion
Rice Promotion assessment levies a fee of $.0135 per bushel on the producer and $.0135 per bushel on the purchaser.
Soybean Promotion
Soybean Promotion assessment levies a fee of one-half percent (0.5%) on the net market price of all soybeans grown within the State of Arkansas. Arkansas uses the Federal reporting form.
Wheat Promotion
Wheat assessment levies a fee of one cent ($.01) per bushel on all wheat grown and sold in the state.
6. 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. Severance Tax
7. 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 1000 barrels from bromide extraction (additional brine)
Salt water disposal fees/credits
Stone & crushed stone - $0.04 cents per ton of 2,000 lbs.
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.
8. 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
$2.00 per gallon of soft drink or simple syrup.
Can Drinks
$.21 cents per gallon of bottled or canned soft drink product.
Powders
$.21 cents for each gallon produced by powders or base products.
9. Waste Tire Fee
Act 1304 of 2003
The Waste Tire Fee is levied on the sale of all new automobile or truck tires sold in the State of Arkansas. There is also levied a fee on all waste tires imported into the State of Arkansas for disposal.
Tire Type and Description
New Automobile Tires $2.00 per tire
Truck Tires Rim size greater than 20" & a load rating of "E" or higher - additional $3.00 per tire.
Waste Tires $1.00 per tire imported into the state for disposal.
Specialty Tires Solid Waste Management Districts may charge a fee for the collection and disposal of specialty tires at their collection or disposal site.
10. Vending Device Decal Fees
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 the 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 his Wholesale 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 - Requiring the insertion of $.25 or more.
$15 - Requiring the insertion of less than $.25.
$7.50 - Bulk vending requiring the insertion of more than $.25.
$2.50 - Bulk vending requiring the insertion of $.25 or less.
$30 - Manually powered coin-operated vending devices requiring the insertion of $.25 or more.
Sales Tax Decal - No charge for devices continuing to pay sales tax.
