Minimum Sales Rate Tax for 2024
| 6.50% | Column content | Column content | Column content | Column content | |
| 2% | Column content | Column content | Column content | Column content | |
| 1.25% | Column content | Column content | Column content | Column content | |
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| Rtd Greater Denver | Column content | Column content | Column content | Column content | |
| Scientific & Cultural Fac.(cd) | Column content | Column content | Column content | Column content | |
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| Minimum combined sales tax rate value | 9.75% | Column content | Column content | Column content | Column content |
| Special tax | Column content | Column content | Column content | Column content | |
| Economic sales nexus threshold | $100,000 | Column content | Column content | Column content | Column content |
| Transactions threshold | 200 | Column content | Column content | Column content | Column content |
| Sales tax return filing due date | 20th of the month following the reporting period. | Column content | Column content | Column content | Column content |
The base state sales tax rate in Arkansas is 6.5%, but since the city-specific tax rate is 2%, and the Washington County tax rate is 1.25%, the minimum sales tax rate for Fayetteville is 9.75%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Looking for help calculating your sales tax? Contact us today to book a free consultation!
What is nexus?
In Fayetteville, businesses must understand “nexus” to determine their tax obligations. Nexus refers to the connection that requires a business to collect sales tax in a state. This concept became even more important after the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., which allowed states to require sales tax collection based on economic activity rather than just a physical presence.
Specific sales tax rules for Fayetteville
In Fayetteville, Arkansas, a 2.00% Hotel/Motel Restaurant (HMR) tax is applied to businesses that rent accommodations or sell prepared food, either for on-site or takeout consumption. This tax includes a 1.00% portion dedicated to advertising and promotion and another 1.00% directed towards city parks. The HMR tax is paid directly to the City of Fayetteville, with additional tourism and lodging taxes collected by the state. Additionally, there is a 5.00% Supplemental Beverage (SB) tax on the sale of alcoholic beverages, excluding beer, wine, and light liquors under 5% alcohol by weight, which fall under the HMR tax.
Services
Typically not taxed unless tied to the sale of physical goods.
Goods
Most physical products, such as appliances, cars, furniture, sporting goods, and electronics, are generally taxable.
Clothing
Usually subject to tax.
Electronics
Taxable.
SaaS
Not taxed.
Digital Products
Taxable.
Software
Downloaded software is taxable, while pre-installed software is considered part of the device and is not taxed.
Freight/Shipping
Shipping fees are exempt from tax unless included in the price of a taxable item.
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