The Arkansas ET-1 form is a crucial document for reporting state and local taxes levied under the Gross Receipts (Sales) Tax and Compensating Use Tax Acts in Arkansas. Designed for the efficient and secure filing of taxes, it enables taxpayers and their representatives to manage tax accounts, file and amend returns, make payments, and much more online through the Arkansas Taxpayer Access Point (ATAP). Stay compliant with Arkansas tax laws by ensuring your ET-1 form is accurately completed, and remember, using ATAP provides a secure and straightforward way to manage your tax obligations.
Ready to take the next step in managing your taxes? Click the button below to fill out your Arkansas ET-1 form with ease and confidence.
In the bustling world of commerce within Arkansas, understanding the myriad of taxes levied on different transactions can resemble navigating a labyrinth, yet it's a crucial part of doing business. At the forefront of this intricate process lies the Arkansas ET-1 Form, a document that encapsulates the state’s approach to the collection of sales and use taxes. Commencing in 2020, the Arkansas Department of Finance and Administration introduced significant updates and reminders for taxpayers, prominently highlighting the Arkansas Taxpayer Access Point (ATAP). This web-based service revolutionizes how taxpayers, including businesses and individuals, interact with their tax accounts, providing a secure and comprehensive online platform for managing tax responsibilities. ATAP ensures taxpayers can file and amend returns, view account activity, and much more, dialed into modern needs for efficiency and accessibility. Additionally, the ET-1 form itself serves as a conduit for reporting state and local taxes under the Gross Receipts (Sales) Tax and Compensating Use Tax Acts, designating specific sections for various taxes such as sales by in-state sellers, out-of-state sellers, and taxable purchases by all taxpayers. Changes like the reduction of the state tax rate on manufacturing repair parts and the methods to claim tax credits for tourism and economic development were introduced, underscoring Arkansas’s adaptability in its tax legislation. Moreover, the precise instructions for calculating taxes due, ensuring accurate reporting, and facilitating taxpayer compliance exemplify the state's commitment to transparency and the simplification of tax processes. Each section of the form, whether addressing gross receipts tax, specific industry-related taxes like aviation or manufacturing utilities, encapsulates the state’s nuanced approach to taxing goods and services with the aim of fairly administering tax obligations while supporting economic growth within Arkansas.
Sales Tax for 2022
The Arkansas Department of Finance and Administration would like to remind you about the new Arkansas Taxpayer Access Point (ATAP). ATAP is a web-based service that gives taxpayers, or their designated representative, online access to their tax accounts and related information. ATAP is available for most taxes administered by the Revenue Division. If you are not currently using ATAP, go to atap.arkansas.gov to sign up and learn about the services available.
ATAP operates in a secure environment where you will set your password and account access information, and only you can update or change this information. Arkansas taxpayers will be provided with secure access to their tax accounts 24 hours a day, seven days a week, and will afford users the ability to perform the following functions:
File and amend returns*
Store banking information for use during payment submission
Make payments
Register for additional tax types
Change name and address
Maintain all tax account types via a single login
View correspondence
Assign 3rd party logins (CPA, power of attorney, responsible
View payments submitted
party, etc.)
View recent account activity
File a return using XML return upload for selected taxes
View tax period financial information (tax, penalty,
File an Annual Reconciliation for Withholding Tax
interest, credits, balance, etc.)
Upload W-2 information
*Individual Income Tax returns are not available to File or Amend on ATAP at this time
What’s New in Sales Tax for 2022
Effective: January 1, 2022
Act 776: Provides that the Department prepare and deliver a report of the awarded amounts of credit or rebate of sales and use tax in Ark. Code §§ 26-52-427, 26-52-523, and 26-53-138 to each city government and county government impacted by the award of the credit or rebate. The report will be delivered electronically on a monthly basis and shall include the name of the taxpayers which were awarded the credit or rebate and the amount. The Department shall not discuss any details of the individual claims in the report with the city government, the county government, or a third party.
The information received by a city government or county government under this subsection shall remain confidential and is not subject to disclosure.
Act 1013: Provides a reduced State sales and use tax rate of 3.5% on the sale of a used motor vehicle, trailer, or semitrailer that has a sales price of at least four thousand dollars ($4,000) but less than ten thousand dollars ($10,000).
Act 1059: Provides that the Department prepare and deliver an electronic report upon request to a municipality or county of the revenues generated within the boundaries of the city or county. The report shall provide the total number of sales and use tax permit holders and the tax amounts reported to the Department by North American Industry
Classification System four-digit code. The Department shall not discuss any details of the report with the city government,
the county government, or a third party. The information received by a city government or county government under this subsection shall remain confidential and is not subject to disclosure.
All of the Acts referenced above can be located on the Arkansas General Assembly’s website at http://www.arkleg.state.ar.us/SearchCenter/Pages/historicalbil.aspx for further review.
ET-1 ARKANSAS EXCISE TAX RETURN INSTRUCTIONS
Form ET-1 is used to report all state and local taxes levied under the Gross Receipts (Sales) Tax and Compensating Use Tax Acts. ALL FIGURES ON THIS REPORT ARE TO BE ROUNDED TO THE NEAREST WHOLE DOLLAR. If the cents amount is 49¢ or less, the cents are dropped. Example, $10.47 would be $10.00. If the cents is 50¢ or more, round up to the next dollar. Example, $11.56 would be $12.00.
Please use blue or black ink in completing the form. Do not use pencil.
Gross Receipts Tax
This section of the reporting form is used to report all sales by In-State Sellers.
State Tax
Line 1A Taxable Sales - Insert your state taxable sales from the Taxable Sales Worksheet on this line.
Line 1C Gross Tax Due - Multiply your Taxable Sales in column A by the state rate of 6.5%. Enter amount here.
07ARS127719
JANUARY 2022 ARKANSAS SALES AND USE TAX REPORTING INSTRUCTIONS
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Line 1D 2% Discount - Multiply Line 1C by 2% (.02) and enter amount here. If the report is postmarked by the 20th of the month due and full payment is made with the report, the 2% discount will be allowed. The discount for state taxes (Lines 1D, 2D, 3D, and 4D) cannot exceed $1000.
Line 1E Tourism Credit - Enter the amount of Tourism Credit if applicable on this line.
Line 1F Net Tax Due -Subtract any amounts shown on line 1D and 1E from the amount on line 1C. Enter the difference on this line.
Food Tax
Line 2A Taxable Sales - (Food & Food Ingredients) Insert your state taxable sales from the Taxable Sales Worksheet on this line. Line 2C Gross Tax Due - Multiply your Taxable Sales in column A by the state rate of 0.125%. Enter the amount here.
Line 2D 2% Discount - Multiply Line 2C by 2% (.02) and enter here. If the report is postmarked by the 20th of the month due and full payment is made with the report, the 2% discount will be allowed. The discount for state taxes (Lines 1D, 2D, 3D, and 4D) cannot exceed $1000.
Line 2E Tourism Credit - Enter the amount of Tourism Credit if applicable here.
Line 2F Net Tax Due - Subtract any amounts shown on line 2D and 2E from the amount on line 2C. Enter the difference here.
Mfg. Utility Tax
Line 3A Taxable Sales - Insert your state taxable sales from the Taxable Sales Worksheet on this line.
Line 3C Gross Tax Due - Multiply your Taxable Sales in column A by the state rate of 0.625%. Enter amount here.
Line 3D 2% Discount - Multiply Line 3C by 2% (.02) and enter amount here. If the report is postmarked by the 20th of the month due and full payment is made with the report, the 2% discount will be allowed. The discount for state taxes (Lines 1D, 2D, 3D, and 4D) cannot exceed $1000.
Line 3F Net Tax Due - Subtract any amounts shown on line 3D from the amount on line 3C. Enter the difference here.
Aviation Tax
Line 4A Taxable Sales - Insert your state taxable sales from the Taxable Sales Worksheet on this line.
Line 4C Gross Tax Due - Multiply your Taxable Sales in column A by the state rate of 6.5%. Enter amount here.
Line 4D 2% Discount - Multiply Line 4C by 2% (.02) and enter amount here. If the report is postmarked by the 20th of the month due and full payment is made with the report, the 2% discount will be allowed. The discount for state taxes (Lines 1D, 2D, 3D, and 4D) cannot exceed $1000.
Line 4F Net Tax Due - Subtract any amounts shown on line 4D from the amount on line 4C. Enter the difference here.
Vendor Use Tax
This section of the reporting form is used to report all sales by Out-Of-State Sellers selling into the State of Arkansas.
Line 5A Taxable Sales - Insert your state taxable sales from the Taxable Sales Worksheet on this line. Line 5C Gross Tax Due - Multiply Line 5A by 6.5% and enter amount here.
Line 6A Taxable Sales - Insert your state taxable sales from the Taxable Sales Worksheet on this line. Line 6C Gross Tax Due - Multiply Line 6A by 0.125% and enter amount here.
Line 7A Taxable Sales - Insert your state taxable sales from the Taxable Sales Worksheet on this line. Line 7C Gross Tax Due - Multiply Line 7A by 0.625% and enter amount here.
Line 8A Taxable Sales - Insert your state taxable sales from the Taxable Sales Worksheet on this line. Line 8C Gross Tax Due - Multiply Line 8A by 6.5% and enter amount here.
Consumer Use Tax
This section of the reporting form is used to report all taxable purchases by all taxpayers. Taxable purchases are purchases from out-of- state which are for use, storage, consumption, or distribution in Arkansas during a reporting period.
Line 9A Taxable Purchases - Insert your state taxable sales from the Taxable Sales Worksheet on this line. Line 9C Gross Tax Due - Multiply your Taxable Sales in column A by the state rate of 6.5%. Enter amount here. Line 9D Economic Dev Credit - Enter the amount of Economic Dev Credit if applicable on this line.
Line 9E Net Tax Due - Subtract any amounts shown on line 9D from the amount on line 9C. Enter the difference.
Line 10A Taxable Purchases - Insert your state taxable sales from the Taxable Sales Worksheet on this line.
Line 10C Gross Tax Due - Multiply your Taxable Sales in column A by the state rate of 0.125%. Enter amount here.
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Line 10D Economic Dev Credit - Enter the amount of Economic Dev Credit if applicable here.
Line 10E Net Tax Due - Subtract any amounts shown on line 10D from the amount on line 10C. Enter the difference here.
Line 11A Taxable Purchases - Insert your state taxable sales from the Taxable Sales Worksheet on this line.
Line 11C Gross Tax Due - Multiply your Taxable Sales in column A by the state rate of 0.625%. Enter amount here. Line 11D Economic Dev Credit - Enter the amount of Economic Dev Credit if applicable on this line.
Line 11E Net Tax Due - Subtract any amounts shown on line 11D from the amount on line 11C. Enter the difference here.
Line 12A Taxable Purchases - Insert your state taxable sales from the Taxable Sales Worksheet on this line. Line 12C Gross Tax Due - Multiply your Taxable Sales in column A by the state rate of 6.5%. Enter amount here. Line 12D Economic Dev Credit - Enter the amount of Economic Dev Credit if applicable on this line.
Line 12E Net Tax Due - Subtract any amounts shown on line 12D from the amount on line 12C. Enter the difference here.
Mfg. Repair Tax
Line 13A Taxable Purchases - Insert your state taxable sales from the Taxable Sales Worksheet on this line. Line 13C Gross Tax Due - Multiply your Taxable Sales in column A by the state rate of 1.5%. Enter amount here. Line 13D Economic Dev Credit - Enter the amount of Economic Dev Credit if applicable on this line.
Line 13E Net Tax Due - Subtract any amounts shown on line 13D from the amount on line 13C. Enter the difference here.
Special Additional Excise Taxes
This section of the reporting form is used to report any of the Special Additional Taxes filed on the ET-1 form.
For Future Use
Line 14 For Future Use.
Tourism Tax
Line 15A Taxable Sales & Purchases - Insert your state taxable sales from the Taxable Sales Worksheet on this line. Line 15C Gross Tax Due - Multiply Column A by the state rate of 2%. Enter amount here.
Line 15D 2% Discount - Multiply Line 15C by 2% (.02) and enter amount here. If the report is postmarked by the 20th of the month due and full payment is made with the report, the 2% discount will be allowed. Discount cannot exceed $1,000.00.
Line 15E Net Tax Due - Subtract any amounts shown on line 15D from the amount on line 15C. Enter the difference here.
Short Term Rental Tax
Line 16A Taxable Sales - Insert your state taxable sales from the Taxable Sales Worksheet on this line. Line 16C Gross Tax Due - Multiply Column A by the state rate of 1%. Enter amount here.
Line 16D 2% Discount - Multiply Line 16C by 2% (.02) and enter amount here. If the report is postmarked by the 20th of the month due and full payment is made with the report, the 2% discount will be allowed. Discount cannot exceed $1,000.00
Line 16E Net Tax Due - Subtract any amounts shown on line 16D from the amount on line 16C. Enter the difference here.
Short Term Rental Vehicle Tax
Line 17A Taxable Sales - Insert your state taxable sales from the Taxable Sales Worksheet on this line. Line 17C Gross Tax Due - Multiply Column A by the state rate of 10%. Enter amount here.
Line 17D 2% Discount - Multiply Line 17C by 2% (.02) and enter amount here. If the report is postmarked by the 20th of the month due and full payment is made with the report, the 2% discount will be allowed. Discount cannot exceed $1,000.00.
Line 17E Net Tax Due - Subtract any amounts shown on line 17D from the amount on line 17C. Enter the difference here.
Line 18 For Future Use.
Residential Moving Tax
Line 19A Taxable Sales - Insert your state taxable sales from the Taxable Sales Worksheet on this line. Line 19C Gross Tax Due - Multiply Column A by the state rate of 4.5%. Enter amount here.
Line 19D 2% Discount - Multiply Line 19C by 2% (.02) and enter amount here. If the report is postmarked by the 20th of the month due and full payment is made with the report, the 2% discount will be allowed. Discount cannot exceed $1,000.00.
Line 19E Net Tax Due - Subtract any amounts shown on line 19D from the amount on line 19C. Enter the difference here.
Wholesale Vending Tax
Line 20A Taxable Sales - Insert your state taxable sales from the Taxable Sales Worksheet on this line. Line 20E Gross Tax Due - Multiply Line 20A by 7% and enter amount here.
Alcoholic Beverage Taxes
This section of the reporting form is used to report any of the Alcoholic Beverage Taxes filed on the ET-1 form.
10% Mixed Drink Tax
Line 21A Taxable Sales - Insert your state taxable sales from the Taxable Sales Worksheet on this line. Line 21E Gross Tax Due - Multiply Line 21A by 10% and enter amount here.
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4% Additional Mixed Drink Tax
Line 22A Taxable Sales - Insert your state taxable sales from the Taxable Sales Worksheet on this line. Line 22E Gross Tax Due - Multiply Line 22A by 4% and enter amount here.
Liquor & Wine Excise Tax
Line 23A Taxable Sales - Insert your state taxable sales from the Taxable Sales Worksheet on this line. Line 23E Gross Tax Due - Multiply Line 23A by 3% and enter amount here.
Beer Excise Tax
Line 24A Taxable Sales - Insert your state taxable sales from the Taxable Sales Worksheet on this line. Line 24E Gross Tax Due - Multiply Line 24A by 1% and enter amount here.
Line 25 Total Special & Alcoholic Beverage Taxes - Add the net tax due from lines 14 thru 24 and enter here. Place this amount on Line 34 on the front page of the tax return.
Local Sales and Use Taxes
Column A City & County - Insert the name of each city or each county you want to report if it is not pre-printed on your forms. (1 per line please)
Column B Code - Insert the Local Tax code for each city and each county. These codes can be found in this instruction packet and on our Website at www.arkansas.gov/salestax.
Column C Type Tax - depending on what type of transaction you are reporting, this designates which line you should use in column D, F, H, and I. Use tax is for out-of-state purchases or sales made by out-of-state vendors.
Column D Taxable Sales & Purchases - (Lines 26 thru 31) – Report sales tax in the top portion of each line and use tax in the bottom
portion of each line. A local rental vehicle tax is also due and should be combined with the amount remitted for local sales tax. Round all figures to the nearest whole dollar. If you have more than six (6) cities and counties to report, attach
Schedule L, located at www.arkansas.gov/salestax.
Column E Tax Rate - Enter the appropriate tax rate (found on the attached list) for the city and the county you are reporting. This list is updated quarterly; please check for possible rate changes.
Column F Gross Tax Due – Multiply the taxable sales or purchases by the applicable tax rate (Column E) and enter the calculated amount here.
Column G 2% Discount – For Sales Tax accounts only, multiply the Gross Sales Tax Due by 2% (.02) and enter the amount here. If the report is postmarked by the 20th of the month due and full payment is made with the report, the 2% discount will be allowed. The discount shall not exceed one thousand dollars ($1,000) per city and county reported. Use Tax accounts are
not eligible for the 2% discount.
Column H Local Tax Rebate – Enter the amount of additional local taxes paid in excess of $2,500 to a seller on qualifying purchases which are eligible for the local tax rebate.
Column I Net Tax Due – Subtract the 2% Discount Amount and any amounts entered in Column H from the Gross Tax Due Amount for the applicable line. Enter the difference here.
Line 32 Total Local Sales and Use Tax – Add the local taxes from all schedules and enter here. Place this amount on Line 35 on the front page of the tax report.
TOTALS (Lines 33 - 38)
Line 33 Total State Tax – Add Net Tax Due for Lines 1 through 13 and place the total on this line. Line 34 Total Special & Alcoholic Beverage Tax – Amount from Line 25 should be entered here. Line 35 Total Local Tax – Amount from Line 32 should be entered here.
Line 36 Total Tax Due – Add Lines 33, 34, and 35 and place the total amount here.
Line 37 Less Prepayments (if required) – Those businesses which are required to make prepayments of sales and/or vendor use tax should take a deduction for those prepayments here.
Line 38 Net Tax Due – Subtract Line 37 from Line 36 and enter the amount here.
Sign Here: Return must be signed by a responsible party.
Payment Voucher Instructions
Insert the amount being paid with the return in the Amount Paid boxes. Also, to ensure payment gets credited to your account, please write your account number on your check. PLEASE LEAVE VOUCHER ATTACHED TO FORM.
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1/4” tear perf
NOTE: In order to determine your taxable sales, we have provided the following worksheet for you to use:
Amended Returns
Form ET-1 allows taxpayers to file an amended return if needed. Check the “Amended Return” box at the top of the return and complete
the return as it would be amended. Attach a letter of explanation and fully explain all of the changes and the reason for the changes.
Failure to attach your explanations will delay the processing of your amended return. The fastest and easiest way to file an amended return is via ATAP: https://atap.arkansas.gov/.
Tax Types reported on form ET-1:
Below are brief descriptions of the taxes remitted and collected on form ET-1. For further information on the collection of these taxes, please visit our Website, www.arkansas.gov/salestax or contact our office at (501) 682-7104.
Sales Tax (Gross Receipts Tax)
Sales or gross receipts tax is levied on retail sales and is collected by the retailer from customers and remitted by the retailer to the State. The retailer gets to retain 2% of the tax collected ($1,000 per month maximum) as a collection fee if the retailer’s remittance is on or before the dates due.
Current Tax Rate is 6.5% (non-food items).
Use Tax (Compensating Use Tax)
The compensating or use tax is levied on retail sales to every person in this State for the privilege of storing, using, distributing or consuming, within the State, any article of tangible personal property or taxable service purchased from outside the State. The tax is in lieu of the State sales tax. It is collected by out-of-state vendors from Arkansas customers and is remitted by them to the State or is reported directly by an in-state purchaser if the tax is not collected by an out-of-state seller.
As of January 1, 2019, the state tax rate on sales of food and food ingredients is one eighth of one percent (0.125%) of the gross re- ceipts or gross proceeds derived from the sale. See Rule 2007-3 on our Website, www.arkansas.gov/salestax or contact our office at
(501) 682-7104.
Current Tax Rate is 0.125%.
Manufacturing Utility Tax
As of July 1, 2015, the state tax rate on sales of natural gas or electricity to a manufacturer for use directly in the manufacturing process is five eighths of one percent (0.625%) of the gross receipts or gross proceeds derived from the sale. See Rule 2007-5 on our Website,
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www.arkansas.gov/salestax or contact our office at (501) 682-7104.
Current Tax Rate is 0.625%.
Aviation Sales Tax
The sales tax on aircraft and aviation fuel, aviation services, parts, accessories and other sales taxes remitted by aircraft dealers, airports and flying fields are collected by the Commissioner of Revenues and remitted to the State Treasury.
Current Tax Rate is 6.5%.
Aviation Use Tax
The use tax on aircraft and aviation fuel, aircraft parts and accessories is collected by the Commissioner of Revenues and remitted to the State Treasury.
2% Tourism Tax
The tax is levied upon the gross receipts or gross proceeds derived from admissions to tourist attractions or the sale or rental on items related to tourism. The tax is collected, reported and paid in the same manner as all other gross receipts taxes. The monies collected are deposited as special revenues and credited to the Tourism Development Trust Fund. Current Tax Rate is 2% and is levied upon the gross receipts of the following:
Admission to theme parks, water parks, water slides, river and lake boat cruises and excursions, local sightseeing and excursion tours, helicopter tours, excursion railroads, carriage rides, horse racing, dog racing, indoor or outdoor plays or music shows, folk centers, observation towers, privately owned or operated museums, privately owned historic sites or buildings, and natural formations; the services of furnishing hotel and motel rooms, lodging houses, condominiums and tourist camps or courts
to transient guests; camping fees at public or private campgrounds; rentals of watercraft, boats, motors, and related motor equipment; life jackets and cushions, water skis, oars, and paddles.
In addition to the Gross Receipts and Compensating Use Tax, there is levied an additional tax of 1% on all tangible personal property that is rented or leased for a period of less than 30 days. The tax is applicable to all rentals or leases regardless of whether tax was paid on the rental property at the time of purchase.
Current Tax Rate is 1%.
A rental vehicle tax is levied on the gross receipts or gross proceeds derived from rentals of licensed motor vehicles for a period of less than 30 days. A local rental vehicle tax is also due and should be combined with the amount remitted for local sales tax. The rate will be equal to the local tax rate in effect for the jurisdiction where the rental occurs.
Current Tax Rate is 10% plus the local rental vehicle tax.
A gross receipts tax is levied upon the rental of gasoline or diesel powered trucks rented or leased for residential moving or shipping. Current Tax Rate is 4.5%.
Vending machine operators have three options with regard to the payment of tax. Sales made through vending machines are not subject to the gross receipts tax, but the vending device operator must (1) pay a “wholesale vending tax” of 7% on property purchased
for resale through a vending device, (2) pay sales tax on all purchases from vendors with no sales for resale exemption or (3) purchase a vending machine decal instead of paying sales tax or wholesale tax. If a vending machine operator chooses this option, all machines operated must have decals on them.
Current Tax Rate is 7%.
Mixed Drink Tax
In addition to the gross receipts tax, holders of mixed drink permits (except private club permits) issued by the Alcoholic Beverage Control Division must collect and remit the ten percent (10%) supplemental gross receipts tax on all sales of alcoholic beverages except beer and wine.
In addition to the gross receipts tax, holders of private club permits issued by the Alcoholic Beverage Control Division must collect and remit the 10% supplemental gross receipts tax upon all charges to members for the preparation and serving of mixed drinks or for the cooling and serving of beer and wine. A private club which also has a beer permit should collect the state and local sales tax but not the ten percent (10%) supplemental tax on its sales of beer.
Current Tax Rate is 10%.
Additional Mixed Drink
In addition to the gross receipts tax and ten percent (10%) supplemental tax, holders of mixed drink permits must collect and remit the four percent (4%) supplemental gross receipts tax on all sales of alcoholic beverages except beer and wine.
In addition to the gross receipts tax and ten percent (10%) supplemental tax, holders of private club permits must collect and remit the four percent (4%) supplemental gross receipts tax upon all charges to members for the preparation and serving of mixed drinks only. Current Tax Rate is 4%.
A special Alcoholic Beverage Excise Tax of 3% is levied upon all retail receipts or proceeds derived from the sale of liquor, cordials, liqueurs, specialties, sparkling and still wines. The tax is collected by the retailer in addition to the retail price of such products and remitted to the Commissioner of Revenues. This tax is in addition to the Gross Receipts Tax.
Current Tax Rate is 3%.
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The tax is levied on the retail sales of beer for off premises consumption. This tax is in addition to the Gross Receipts Tax. Current Tax Rate is 1%.
Local taxes are collected and remitted similar to the state sales and use tax. You must report each city tax or county tax separately on the form.
Businesses that hold an active Arkansas Sales and Use Tax permit and file Excise Tax returns with DFA may deduct the amount of additional city or county tax on business purchases on which the full amount of local tax has been collected by the seller. The total amount of the additional tax for a qualifying rebate for each city and county for which the tax was paid must be listed on the form.
When completing the form, a credit for any additional tax paid will be deducted from the local tax due for that reporting period.
Lines 26 – 31
Report sales tax or local rental vehicle tax in the top portion of each line and use tax in the bottom portion of each line. Round all figures to the nearest whole dollar. If you have more than six (6) cities and counties to report, attach additional Schedule L, located at www.arkansas.gov/salestax.
Column A (City & County) – Enter the name of the city or county for which you are reporting tax.
Column B (Code) – Enter the local code as assigned by the Department of Finance and Administration (See enclosed list.) This list is updated quarterly and can be obtained from the Sales and Use Tax Section’s website at www.arkansas.gov/salestax.
Column D (Taxable Sales or Purchases) – Enter the taxable amount of sales or purchases.
Column E (Rate) – Enter the appropriate tax rate (found on the attached list) for the city or county you are reporting. This list is updated quarterly; please check for any possible rate changes.
Column F (Gross Tax Due) – Multiply the taxable sales or purchases by the tax rate and enter here.
Column G (2% Discount) – Multiply the Gross Sales Tax Due by 2% (.02) if paid and postmarked by the 20th of the month due. The discount does not apply to use tax or local rental vehicle tax. The discount shall not exceed one thousand dollars ($1,000) per city and county reported.
Column H (Local Tax Rebate) – Enter the amount of additional local tax paid to a seller on qualifying purchases eligible for the local tax rebate. (See Local Tax Rebate Computation below)
Column I (Net Tax Due) – Subtract the 2% Discount amount from the Gross Tax Due amount. Enter the difference here.
Line 32 Total Local Sales & Use Tax – Add the local taxes from all schedules and enter here.
EXAMPLE:
Local Sales and Use Taxes (If you have additional local taxes to report, please attach a supplemental schedule)
Tax
Taxable Sales
Less 2%
Local Cap
A. City & County
B. Code
C. Type
D. & Purchases
E. Rate F. Gross Tax Due
G. Discount
H. Rebate
I. Net Tax Due
26.
6005
SALES
10,000
1.125%
113.00
2.00
111.00
LITTLE ROCK
USE
27.
6000
1.000%
100.00
98.00
PULASKI CO.
28.
2301
0
2.125%
99.75
-99.75
CONWAY
29.
2300
0.500%
28.50
-28.50
FAULKNER CO.
30.
31.
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RECENT LOCAL TAX CHANGES
The following cities and counties have recent tax CHANGES. Please refer to the city and county local tax listing for the complete listing and current rates in local taxes. This list contains rate change information based on information available January 1, 2022.
City or County Name
Code
Date
Rate
County
Recent Action
Cotter
03-02
1/1/2022
2.000%
Baxter
Increased
Siloam Springs
04-01
Benton
Annexation
Bentonville*
04-03
Gravette
04-07
Pea Ridge*
04-10
Concord
12-01
Cleburne
Enacted
Brookland
16-04
3.000%
Craighead
Van Buren
17-02
1.500%
Crawford
Cushman
32-03
0.000%
Independence
Cabot*
43-11
Lonoke
Little Rock
60-05
Pulaski
Decreased
Fort Smith
65-01
Sebastian
Mansfield**
65-03
2.500%
Deannexation
Johnson
72-07
Washington
Fayetteville*
72-14
Beebe
73-02
1.250%
White
Sebastian County
65-00
-
4/1/2022
Gentry
04-06
Centerton
04-09
Rockport
30-03
Hot Spring
Grady
40-03
Lincoln
Manila
47-13
Mississippi
Rosston
50-06
Nevada
Springdale**
72-10
West Fork
72-12
*Denotes multiple changes for this jurisdiction. **Denotes jurisdiction is in multiple Counties.
Local Tax Rebate Computation
To compute the amount of rebate, take the invoice amounts exceeding $2,500 (not including tax) and subtract $2,500 from the total Invoice amount. This result is multiplied by the local tax rate that is applicable and the product is the local tax rebate.
Local Tax Rebate EXAMPLE
You must use this method to compute each Rebate for each local tax. For more information, visit our website: www.arkansas.gov/salestax
Please Note (Texarkana):
In Accordance with Arkansas statute 26-52-523, only the .5% portion of the 2.5% Texarkana City tax is eligible for the local tax rebate allowed on business purchases.
To claim a local tax rebate on the available .5% portion of the Texarkana City tax on business purchases, complete and submit the ET-179A, Local Tax Rebate Form according to the instructions on the form. The ET-179A, Local Tax Rebate Form may be printed from on our website www.arkansas.gov/salestax. You may not claim the local tax rebate for the city of Texarkana on the ET-1 Excise Tax Return.
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When it's time to report state and local taxes in Arkansas, the ET-1 form is your go-to document. This step-by-step guide will help simplify the process, ensuring you fill out the form accurately. Remember, accuracy and timeliness are key to avoiding any potential issues or delays with your submission. Having all the necessary sales data and tax calculation figures on hand before you start will make the process smoother. Here's how to fill out the Arkansas ET-1 form:
After completing the form, review it carefully to ensure all information is correct and submit it by the due date to avoid any penalties. Filing on time also allows you to take advantage of any eligible discounts. Remember, maintaining accurate records and staying informed about tax rate changes can help streamline the reporting process.
What is the Arkansas ET-1 form used for?
The Arkansas ET-1 form is an essential document for reporting state and local taxes levied under the Gross Receipts (Sales) Tax and Compensating Use Tax Acts. This comprehensive form includes sections for sales tax, various special taxes like the Aviation Tax, and the Consumer Use Tax, among others. It's designed for sellers and businesses to accurately report and remit the correct taxes to the state, ensuring compliance with Arkansas tax legislation. All figures reported must be rounded to the nearest whole dollar, ensuring clarity and simplicity in tax calculations.
How do I file and amend returns using the Arkansas Taxpayer Access Point (ATAP)?
ATAP, the Arkansas Taxpayer Access Point, is a web-based service that allows taxpayers or their authorized representatives to access their tax accounts and conduct various transactions online. Through ATAP, users can file and amend certain tax returns, store banking information for payments, and manage many aspects of their tax accounts securely. To file or amend returns, simply login to your ATAP account, select the relevant tax return option, and follow the prompts to complete your filing. If you have not yet set up an ATAP account, you can register by visiting atap.arkansas.gov.
Can I file Individual Income Tax returns or amend them using ATAP?
As of now, ATAP does not support filing or amending Individual Income Tax returns. While ATAP offers a wide range of services for managing various state taxes online, taxpayers looking to file or amend their Individual Income Tax returns will need to explore other filing options provided by the Arkansas Department of Finance and Administration.
What new changes were introduced in the Arkansas Sales Tax for 2020?
In 2020, significant changes were introduced to Arkansas Sales Tax, including the enactment of Act 866, which addresses procedures following the issuance of a final business closure order for sellers/contractors with state government contracts. Additionally, the state tax rate on sales of manufacturing repair parts and labor was set at 2.5% of the gross receipts or gross proceeds. These changes and others are part of Arkansas's ongoing efforts to update and refine its tax policies to reflect current economic and business practices.
What are some key features and benefits of using ATAP?
ATAP provides a secure, reliable, and convenient way for Arkansas taxpayers to manage their tax obligations online. Key features include the ability to file and pay taxes, store payment information securely, register for additional tax types, and much more. One of the main benefits is the ability to access tax account information and perform necessary transactions 24/7 from any internet-connected device, offering flexibility and efficiency in handling tax matters.
Completing the Arkansas ET-1 form correctly is crucial for accurate tax reporting and compliance. However, mistakes can happen, leading to potential issues or delays with tax filings. Here are ten common mistakes to avoid when filling out the Arkansas ET-1 form:
Avoiding these mistakes not only ensures compliance but also facilitates a smoother tax filing process with the Arkansas Department of Finance and Administration.
When handling tax-related obligations in Arkansas, particularly with the Arkansas ET-1 form for reporting state and local taxes levied under the Gross Receipts (Sales) Tax and Compensating Use Tax Acts, it's essential to be aware of the accompanying forms and documents that might be needed. The documentation process can be comprehensive, requiring accurate and thorough record-keeping. Here's a brief overview of other forms and documents often used alongside the Arkansas ET-1 form:
Understanding and utilizing these additional documents in conjunction with the ET-1 form simplifies the tax reporting process, ensuring compliance with state tax laws. Accurate completion and timely submission of the Arkansas ET-1 and its supplementary documents support a smooth operation for businesses in managing their sales and use tax responsibilities.
The Arkansas ET-1 form, used for the reporting and payment of various state taxes, closely parallels the functionality and purpose of the California Sales and Use Tax Return. Both forms are intended for businesses to declare their taxable sales and use activities within the respective state. California's form similarly requires detailed reporting on total sales, taxable sales, and applicable tax rates, allowing businesses to deduct applicable discounts and report net tax due, just as the Arkansas ET-1 form does.
Florida’s Sales and Use Tax Return shares similarities with the Arkansas ET-1 form in its structure and use. It is designed for businesses to report gross sales, exempt sales, and taxable sales, along with the computation of tax due. Both forms provide sections for calculating discounts for timely filing and offer venues for reporting multiple tax categories, including general sales tax, food, and manufacturing utility taxes.
New York’s Sales and Use Tax Return is another document that closely mirrors the Arkansas ET-1 form. It caters to businesses operating within the state requiring them to report their sales activities, calculate taxes due on various types of sales, including general, food, and utilities, and apply any eligible discounts for early submission. Like the ET-1, it serves as a comprehensive tool for tax compliance within the state.
The Texas Sales and Use Tax Return also shares features with the Arkansas ET-1 form. Both documents are essential for businesses to report and remit taxes on their sales and purchases. They cover multiple types of transactions, such as general sales and specific categories like manufacturing and aviation, ensuring businesses accurately report and pay state taxes.
Ohio’s Commercial Activity Tax (CAT) Return, while more specific in its focus on gross receipts, has parallels to the Arkansas ET-1 form in its broader role in state tax reporting. Businesses are required to report their taxable activities in detail, similar to how the ET-1 form demands meticulous reporting on sales and use tax activities across various categories.
Michigan’s Sales, Use, and Withholding Taxes Monthly/Quarterly Return provides a comprehensive platform for businesses to report sales and use tax, akin to the Arkansas ET-1 form. It includes detailed reporting on taxable sales, allows for tax credit applications, and offers a separate section for withholding tax, similar to the way ET-1 manages various tax types within a single form.
Illinois’ Sales and Use Tax Return, likewise, bears a resemblance to Arkansas’s ET-1 form by offering a platform for businesses to report their sales tax obligations. Both forms include sections for detailed calculations of tax due on taxable sales, with allowances for deductions like discounts for timely filing and applying credits.
Pennsylvania's Sales and Use Tax Return emphasizes the reporting of taxable and nontaxable sales within the state, comparable to the Arkansas ET-1 form’s focus. It lays out the groundwork for businesses to detail their sales activities, apply corresponding tax rates, and calculate net taxes due, fostering state tax compliance.
The Colorado Retail Sales Tax Return, with its emphasis on taxable retail sales, shares several functionalities with the Arkansas ET-1 form. Both demand detailed sales reporting by businesses, encompass taxation across various categories, and facilitate the computation and remission of due taxes to the state.
Lastly, the Georgia Sales and Use Tax Return parallels the ET-1 form's aims and structure by requiring detailed reporting on sales and taxable activities within the state. It lays out a framework for businesses to calculate due taxes across different categories, similar to Arkansas’s method of handling sales, food, manufacturing, and other specific tax types.
Oregon's Corporate Activity Tax Return, though focusing on the gross receipts from business activities, bears some resemblance to the Arkansas ET-1 form in its function of facilitating state tax compliance. It requires businesses to report on their activities and calculate taxes due, albeit with a focus on gross receipts rather than sales and use tax.
When preparing the Arkansas ET-1 form for Sales and Use Tax, there are certain practices you should follow to ensure that the process is smooth and that your submission is accurate. Recognizing and adhering to these do's and don'ts can help avoid common mistakes and potential penalties.
Do's:
Don'ts:
One common misconception is that the ATAP (Arkansas Taxpayer Access Point) is optional. In reality, ATAP provides crucial online access to tax accounts and related information, making the management of tax responsibilities more efficient for taxpayers and their representatives.
Many people believe that all tax returns can be filed or amended through ATAP. However, individual income tax returns currently cannot be filed or amended using this online system, highlighting a specific exception within the platform's capabilities.
There's a misunderstanding that rounding figures on the ET-1 form isn't important. All figures should be rounded to the nearest whole dollar, ensuring accuracy in reporting and compliance with the Department of Finance and Administration’s requirements.
Another misconception is about the 2% discount available on certain taxes. Some think this discount is unlimited when, in fact, it cannot exceed $1,000. This cap ensures fairness and prevents misuse of the discount benefit.
People often think that the ET-1 form is solely for state taxes, overlooking its use for reporting local taxes as well. The form is designed to report both state and local taxes, making it a comprehensive tool for fulfilling tax obligations in Arkansas.
It’s mistakenly believed that sales tax is fixed at 6.5% for all transactions. However, various items and services, like food and manufacturing utilities, are taxed at different rates, illustrating the tax code's complexity.
There is a misconception that the ET-1 form does not accommodate special taxes. In actuality, it includes sections for a variety of specific taxes, such as the Alcoholic Beverage Taxes and Tourism Tax, making it adaptable to numerous tax scenarios.
Sometimes, taxpayers assume that amending a return is complicated. The ET-1 form allows for amendments by simply checking the "Amended Return" box and providing a clear explanation, facilitating corrections or updates to previously submitted information.
Last but not least, the belief that electronic payment options are limited is unfounded. The form supports storing banking information for easy payment submission, enhancing convenience for taxpayers.
Understanding the Arkansas ET-1 form is crucial for businesses and taxpayers in Arkansas. Here are seven key takeaways to help navigate the process:
Filling out the Arkansas ET-1 form correctly is key to ensuring compliance with state tax laws and avoiding potential penalties. By following the detailed instructions and understanding the tax rates and regulations, businesses can effectively manage their tax responsibilities in Arkansas.
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