Sales & Use Tax

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 the University of Arkansas.

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.

Hotel, Motel, 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.

Arkansas Tourism Tax:  An additional 2% tax may be levied on lodging.

 

Sales Tax Changes: D F & A Document - 2021 Tax Changes

State Tax rates can be viewed here.

Recent Changes 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:

  1. Items purchased for resale by the University using Resale Permit Number 031521-78-001.
  2. Agricultural fertilizer, limestone, chemicals, vaccines, medications, and medical preparations as exempted by Act 68 of 1973.
  3. Feedstuffs purchased for growing livestock or poultry as defined by Act 234 of 1973 and exempt by law.
  4. 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".
  5. All motorized vehicles including 4x4 off road, riding lawn mowers, and tractors.
  6. 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.