Sales and Use Tax
Sales Tax will be charged by
those suppliers located in-state and by out of state suppliers if that out of state supplier remits sales tax to the State of Arkansas.
Use Tax will be calculated by Workday on
those purchases where tax is applicable; the supplier is located out of state,
and the supplier DOES NOT remit sales tax to the State of Arkansas. Use tax is
then remitted to the State of Arkansas by the Financial
Affairs Office at
Current Tax Rate
As of July 1, 2021 the local tax
rate is 9.75%. This is comprised of 6.5% State tax, 2% City of Fayetteville
tax, and 1.25% Washington County tax.
and Restaurant (HMR) Tax: The City of Fayetteville currently has an
additional 2% HMR tax on establishments engaged in the business of renting,
leasing or otherwise furnishing hotel or motel accommodations, or selling
prepared food or beverages for consumption on or off premises.
An additional 2% tax may be levied on lodging.
Changes: D F & A Document - 2021 Tax
State Tax rates
can be viewed here.
for Local Taxes can be viewed here.
Sales and Use
Tax Section Local Tax Lookup Tools here.
Sales and Use Tax Exception
The University of Arkansas is NOT exempt from paying sales or use taxes except on those
items and/or purchase transactions that are specifically exempted by law. Such
specific exemptions include but are not limited to the following:
- Items purchased for resale by the
University using Resale Permit Number 031521-78-001.
- Agricultural fertilizer, limestone, chemicals,
vaccines, medications, and medical preparations as exempted by Act 68 of
- Feedstuffs purchased for growing livestock or
poultry as defined by Act 234 of 1973 and exempt by law.
- Subscription sales of publications. Subscription
means "purchase by advance payment of a specified number of issues of
a publication over a certain period of time, and delivered to the
subscriber by mail or otherwise".
- All motorized vehicles including 4x4 off road,
riding lawn mowers, and tractors.
- Software, licenses, and renewals for which no
tangible media is received.
Excess Sales and Use Tax
Beginning January 1, 2008, local
tax caps on single transactions will no longer apply when retailers collect
city and county sales and use taxes. Since the caps no longer apply, retailers
will collect the full amount of state, city, and county taxes on all
transactions. Purchases by businesses may be eligible to apply to DFA for a
refund of the local tax for qualified business purchases made on or after
January 1, 2008.