The Arkansas ET-1 Form is a comprehensive document used for reporting all state and local taxes levied under the Gross Receipts (Sales) Tax and Compensating Use Tax Acts in Arkansas. It serves as a vital tool for businesses to accurately report their taxes, ensuring compliance with state tax laws. Designed for both in-state and out-of-state sellers, it covers various tax types, including sales, use, food, manufacturing utility, aviation, and more. For an easier way to manage your Arkansas tax obligations, consider filling out this form by clicking the button below.
The Arkansas Department of Finance and Administration released comprehensive instructions for the Arkansas Excise Tax Return Instructions (Form ET-1), a critical document for reporting state and local taxes levied under the Gross Receipts (Sales) Tax and Compensating Use Tax Acts. The form serves a dual purpose, incorporating the filing needs for various tax types including sales, use, food, manufacturing utility, and several specialized excises such as aviation and alcoholic beverage taxes. The initiation of the Arkansas Taxpayer Access Point (ATAP) stands out as a noteworthy digital advancement, providing a secure, web-based platform for taxpayers or their delegates to manage tax accounts, submit filings, and make payments among other functionalities. Highlights of the form instruction include the importance of rounding figures to the nearest dollar, utilizing blue or black ink for clarity, and the eligibility criteria for discounts and credits such as the 2% discount for timely filings which cannot exceed $1,000. Another significant update detailed is the state sales tax rate adjustment for manufacturing repair parts and labor effective July 1, 2020, marking a pivotal change in tax liabilities for the sector. Additionally, the document outlines the process of filing amended returns and provides a clear breakdown of tax types, rates, and the necessary steps for calculating net tax due across various categories. With the convenience of online access via ATAP, the pathways for managing tax responsibilities in Arkansas have been significantly streamlined, albeit with a necessary emphasis on accuracy and adherence to guidelines as delineated in the detailed instructions of Form ET-1.
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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Filling out the Arkansas ET-1 form accurately is an essential task for businesses to ensure they comply with the state's tax requirements. This process involves reporting all state and local taxes levied under the Gross Receipts (Sales) Tax and Compensating Use Tax Acts. To facilitate this task, individuals should gather all necessary sales data before beginning the process, ensuring that all information is accurate and up-to-date. The ATAP system simplifies this process by allowing taxpayers to manage their accounts online, providing a streamlined alternative to manual submission.
Completing the Arkansas ET-1 form accurately and on time helps businesses maintain compliance with state tax laws, avoiding potential penalties. Utilizing the ATAP system simplifies this process, ensuring businesses can easily manage their tax responsibilities in Arkansas.
What is the Arkansas ET-1 Form?
The Arkansas ET-1 Form is utilized for reporting state and local taxes levied under the Gross Receipts (Sales) Tax and Compensating Use Tax Acts. It encompasses various tax categories, including Sales Tax, Use Tax, Food Tax, Manufacturing Utility Tax, Aviation Sales Tax, and others, along with special and alcoholic beverage taxes.
How do I file an ET-1 Form?
Filing can be done electronically through the Arkansas Taxpayer Access Point (ATAP) portal, where taxpayers can file and amend returns, store banking information, make payments, and view their account information securely. For those preferring physical submission, the form should be completed in blue or black ink, ensuring figures are rounded to the nearest whole dollar, as specified in the form's instructions.
Can I amend an ET-1 Form after submission?
Yes, amendments to the ET-1 Form are permitted. To file an amended return, check the "Amended Return" box at the top of the form, fill out the form as corrected, and attach a letter explaining the changes and reasons. The fastest method for filing an amendment is through the ATAP portal.
What are the tax rates applicable in the ET-1 Form?
The form outlines various tax rates for different categories, such as a 6.5% rate for non-food items under Sales and Use Tax. The Food Tax rate is 0.125%, the Manufacturing Utility Tax rate is 0.625%, and Aviation Sales Tax is also at 6.5%. Other specific rates apply for Manufacturing Repair Parts Tax, Tourism Tax, and additional special taxes.
What is the deadline for filing the ET-1 Form?
The specific due date for filing depends on your filing schedule, which could be monthly, quarterly, or annually. Generally, if you are required to file monthly, the report is postmarked by the 20th of the month following the reporting period. You should refer to the Arkansas Department of Finance and Administration for your specific filing deadline.
How does the 2% discount work?
Taxpayers who file their report by the due date and make full payment with their report are eligible for a 2% discount on the gross tax due. However, it's important to note that this discount cannot exceed $1,000 for state taxes and varies for local taxes.
What if I make taxable purchases from out-of-state vendors?
For taxable purchases from out-of-state vendors for use, storage, consumption, or distribution in Arkansas, you must report these under the Consumer Use Tax section of the ET-1 Form. The Use Tax acts as a counterpart to Sales Tax for items not taxed at the point of sale.
Filling out the Arkansas ET-1 form can often seem straightforward, but errors can occur if you're not careful. Here are five common mistakes people make:
Beyond these specific errors, it's vital to ensure that all required fields are completed and that the form is signed by a responsible party. While it might seem like a lot to remember, paying close attention to the details can help avoid delays or issues with the Arkansas Department of Finance and Administration.
When dealing with the Arkansas ET-1 form for reporting state and local taxes, individuals and businesses often need to gather and submit additional forms and documents to ensure full compliance with tax regulations. Understanding these supplementary documents can provide a clearer, more comprehensive approach to handling tax obligations in Arkansas.
Together, these documents play a crucial role in ensuring the accurate and timely filing of the ET-1 form. By familiarizing themselves with these forms and documents, taxpayers can navigate the complexities of Arkansas tax law with confidence, ensuring they meet their tax obligations fully and accurately.
The Arkansas ET-1 form, designed for reporting sales and use taxes, bears similarity to several other tax documents across different tax domains; this resemblance is often drawn from their purpose, structure, and the information they collect. These similarities allow for a more comprehensive understanding of tax obligations and procedures within the United States.
One such document parallel to the Arkansas ET-1 form is the Federal 941 form, used by employers to report federal payroll taxes. Both forms serve as periodic reports, the ET-1 on a monthly basis for sales tax and the 941 quarterly for payroll taxes. They share the common purpose of remitting taxes collected on behalf of others – sales taxes from customers and payroll taxes from employees. This structural likeness underscores their roles in ensuring tax compliance and facilitating government operations.
The Uniform Sales & Use Tax Certificate – Multijurisdiction form, often used by resellers to document tax exemptions on purchases meant for resale, shares a conceptual similarity with the ET-1 form. Both play pivotal roles in the accurate reporting and collection of sales and use taxes, albeit from different angles: the ET-1 focuses on the seller's responsibility to remit taxes collected, while the Uniform Certificate helps sellers identify transactions exempt from such collection.
Another document that aligns with the Arkansas ET-1 form is the California Sales and Use Tax Return. Both documents require the detailed reporting of taxable sales, applicable tax rates, and deductions. The process ensures proper tax calculation and compliance with state-specific tax regulations, cementing their roles in maintaining tax accuracy across different jurisdictions.
The New York State ST-100 Quarterly Sales and Use Tax Return also mirrors the Arkansas ET-1 form in function and purpose, despite differences in state-specific tax regulations and rates. These forms collect detailed transaction information, allowing for the precise calculation of taxes owed. Such parallels reflect the universal need for comprehensive tax reporting mechanisms in different states.
The International Fuel Tax Agreement (IFTA) Tax Return is a specialized form that, like the ET-1, deals with reporting and remitting taxes. Designed for trucking businesses, the IFTA Return accounts for fuel taxes across states. Though the taxes involved differ, the underlying principle of reporting use-based taxes to the appropriate authority connects them, highlighting the diverse applications of tax reporting principles across industries.
The VAT Return form, used in countries with Value-Added Tax systems, shares a conceptual link with the ET-1 form through its focus on transaction taxation. Both forms facilitate the tracking and remittance of taxes imposed at different stages of goods and services distribution. This similarity showcases the global need for structured tax reporting that transcends specific tax models.
The General Excise Tax (GET) Return of Hawaii is another document with functionalities akin to the Arkansas ET-1 form. Primarily, both involve the calculation and remittance of taxes on gross income from business activities. Despite the different tax nomenclatures and structures, the essence of reporting business transactions for tax purposes serves as a common ground between them.
In the realm of property taxes, the Personal Property Tax Declaration forms used by businesses to report assets also share an underlying similarity with the ET-1 form. Both necessitate the detailed listing of items subject to taxation, although focusing on different tax bases. The methodology of itemized reporting illustrates the broader principle of tax accountability and transparency in various tax disciplines.
When filling out the Arkansas ET-1 form, it’s crucial to follow specific guidelines to ensure the process is smooth and your report is accurate. Below is a list of things you should and shouldn't do.
What You Should Do:
What You Shouldn't Do:
Discussing the Arkansas ET-1 form, there are a number of common misconceptions that need clarification. This form is pivotal for reporting and paying state and local taxes in Arkansas, including sales and use taxes. By addressing these misconceptions, taxpayers can ensure their tax filings are both accurate and compliant.
Many believe the ET-1 form is exclusively for sales tax reporting. However, it's used to report multiple tax types, including Compensating Use Tax, Food Tax, Mfg. Utility Tax, and various other excise and special taxes. This form provides a comprehensive medium for businesses to report and pay their due taxes across these various categories.
It's commonly thought that only businesses are required to file the ET-1 form. In reality, any taxpayer, including individuals who have made out-of-state purchases for use in Arkansas, may need to file this form to report use tax or other applicable taxes.
There's a perception that amended returns for the ET-1 cannot be filed online through the Arkansas Taxpayer Access Point (ATAP). Contrary to this belief, taxpayers are encouraged to use ATAP for filing amended returns, as it's designed to facilitate the process efficiently and securely.
A common misunderstanding involves the 2% discount on tax due. Taxpayers might assume this discount is automatically applied. However, to benefit from this discount, the report must be postmarked by the 20th of the month due, and full payment made at the time of reporting. The discount also has a cap of $1,000 per tax type reported.
There's a misconception that the Tourism Credit applies across all tax types reported on the ET-1 form. In reality, eligibility and application of the Tourism Credit are specific to certain types of transactions and tax categories. Taxpayers should verify their eligibility for such credits before applying them to their tax due.
Some believe the compensating use tax is relevant only for large businesses conducting out-of-state purchases. Nevertheless, use tax applies to all taxpayers, including small businesses and individuals, who purchase goods or services from outside Arkansas for use within the state, when sales tax has not been collected by the seller.
Correcting these misconceptions is crucial for effective tax administration and compliance. Taxpayers are encouraged to utilize resources like the Arkansas Department of Finance and Administration's website and ATAP to stay informed and ensure accurate tax reporting and payment.
Here are 10 key takeaways about filling out and utilizing the Arkansas ET-1 form:
For any detailed inquiries or issues related to the Arkansas ET-1 form or specific tax responsibilities, it's recommended to visit the Arkansas Department of Finance and Administration website or contact their office directly.
Acic Forms - Recommendations by an Arkansas Weights and Measures official might be included, offering an authoritative assessment of the applicant’s qualifications.
Arkansas State Tax Phone Number - Assists employers in navigating the specifics of monthly tax withholding and the accurate reporting thereof to the state.