Arkansas is a state that has many different taxes depending on the item and location. While some might think it is easier to levy one set tax rate throughout the state different tax percentages give individuals a chance to save money on certain items that are often deemed more important. In order to get the most out of the different state tax in Arkansas and to avoid confusion it is important to stay current on all of the tax rates when you are living in Arkansas.
Getting used to the different state sales taxes is sometimes the hardest thing for new residents and visitors to get used to. It can be confusing to look at different receipts and try to puzzle out why one store charged a certain sales tax that is entirely different from a business you visited the day before. Instead of getting confused or returning to the place of business charging the higher tax demanding an explanation it is important that you acquaint yourself with the different rats.
The highest sales taxes in Arkansas are on basic goods and everyday items like clothing. This sales tax rate is six per cent and only prescription drugs are excluded for the tax. Both natural gas and electricity in Arkansas are taxed at 4.5 per cent and the cities and counties in Arkansas have the option of adding an additional tax of 6.5 per cent to this amount. The lowest tax rates in Arkansas are for food which is taxed at a rate of only three per cent.
In addition to deciding whether or not they wish to levy an additional 6.5 per cent tax Arkansas counties determine the property taxes in their areas. Each household can receive a refund not to exceed $300 and the assessment is based on 20 per cent of the true market value. This taxable value can increase each year at a rate of no more than five per cent each year. The only times the value of a home will drastically increase is if major renovations are completed or new additions are added to the home.
Finding out what tax amount you will be expected to pay should be found out before you move to Arkansas if at all possible. Contact the state government or the county government of the counties you are interested in. Most websites display the current tax rates or at least will provide the contact information for the tax commissioners including phone numbers and e-mail addresses.