Residential, Industrial Real and Industrial Personal Property is assessed at a rate of 20% of Fair Market Value
Payment in Lieu of Property Tax
Real and personal property financed by revenue bonds and general obligation bonds may be exempt from property taxes during the lease-amortization period in which a local government retains title to the property. Payments by businesses to local governments in lieu of property taxes are generally encouraged and negotiated between the parties involved.
The negotiated Payment in Lieu of Property Taxes shall not be less than 35% of the property taxes that would have been paid if the property were on the tax rolls.
Raw Materials, Goods-in-Process Inventory and Finished Goods Inventory
Tangible personal property in transit through Arkansas and inventory tangible personal property manufactured, processed or refined in Arkansas and stored for shipment outside the state are exempt from taxes.
Applicable Municipal Related Taxes on Employees
NONE
Source: Craighead County Tax Assessor, July 2006; Arkansas State Sales Tax, July 2006.
Sales Tax
Combined Sales Tax
Arkansas State Sales Tax
6.0%
City Sales Tax
1.0%
County Sales Tax
1.0%
TOTAL
8.0%
*Note: City and County Sales Tax each have a $25 cap per purchase.
Arkansas State Taxes
Taxes levied by the State of Arkansas include the following:
Corporate and Personal Income Tax
Sales and Use Tax
Unemployment Insurance Tax
Corporate Franchise Tax
Capital Gains Tax Reduction
Property Tax
For details, please visit the Arkansas Department of Economic Development Website at: www.1800arkansas.com.
