1. Worldmark Encyclopedia of the States
  2. Arkansas
  3. Taxation

Arkansas

Taxation

In 2000, the state income tax ranged from 0% to 6%; the corporate income tax ranged from 1% on the first $3,000 to 6.5% on amounts over $100,000. Corporate taxpayers with a net income of $100,000 or greater pay a flat rate of 6.5%. The state sales tax is 4.625%. The state also imposes severance taxes on oil, natural gas, and other natural resources, along with levies on liquor, gasoline, and cigarettes. City and county property taxes in Arkansas are among the lowest in the nation.

Total tax revenues for 2001 were forecast at approximately $3.3 billion, including $1.8 billion from individual income, and $1.4 billion from the sales tax. The severance and corporate franchise taxes were repealed in 1999, causing a drop in revenue from 1998.

The following table from the US Census Bureau provides a summary of taxes collected by the state in 2002.

Arkansas

  ($000) PER CAPITA
Total Taxes 5,034,109 1,857.55
Property taxes 486,895 179.66
Sales and gross receipts 2,589,256 955.42
General sales and gross receipts 1,918,140 707.78
Selective sales taxes 671,116 247.64
Alcoholic beverage 30,739 11.34
Amusements (X) (X)
Insurance Premiums 80,386 29.66
Motor fuels 415,050 153.15
Pari-mutuels 4,032 1.49
Public utilities (X) (X)
Tobacco products 93,073 34.34
Other selective sales 47,836 17.65
Licenses 234,931 86.69
Alcoholic beverages 1,579 0.58
Amusements 1,924 0.71
Corporation 7,983 2.95

Arkansas

  ($000) PER CAPITA
Licenses 234,931 86.69
Hunting and fishing 21,294 7.86
Motor vehicle 97,453 35.96
Motor vehicle operators 13,205 4.87
Public utility 10,311 3.8
Occupation and business, NEC 76,838 28.35
Other 4,344 1.6
Other taxes 1,723,027 635.78
Individual income 1,488,250 549.15
Corporation net income 161,021 59.42
Death and gift 35,697 13.17
Documentary and stock transfer 19,086 7.04
Severance 13,217 4.88
Other 5,756 2.12