Changes Effective March 1, 2004

Effective March 1, 2004, the Arkansas State Sales and Use Tax rate will increase from 5.125% to 6%. The rate increase will apply to all taxable sales of tangible personal property and taxable services that occur on or after March 1, 2004. The special Texarkana State Sales and Use Tax rate will increase to 7%. The Short-Term Rental Vehicle Tax will remain at the current state tax rate of 10%.

Changes Effective July 1, 2004

Effective July 1, 2004, the following services will be subject to the Arkansas State Sales Tax and any applicable local taxes:

	Wrecker and Towing Services
	Collection and Disposal of Solid Waste
	Cleaning Parking Lots and Gutters
	Dry Cleaning and Laundry Services
	Industrial Laundry Services
	Mini Warehouse and Self Storage Rental Services
	Body Piercing, Tattooing, and Electrolysis Services
	Pest Control Services
	Security and Alarm Monitoring Services
	Boat Storage and Docking Fees
	Furnishing Campground Spaces or Trailer Spaces at Public or Privately Owned Campgrounds, except for Federal Campgrounds, on Less Than a Month-to-Month Basis
	Locksmith Services
	Pet Grooming and Kennel Services
	New Installation and Replacement Labor for Hardwood, Vinyl, Ceramic tile, or Any Other Types of Flooring

The tax will also apply to initial installation services of motor vehicles, aircraft, farm machinery and implements, motors of all kinds, tires and batteries, boats, electrical appliances and devices, furniture, rugs, flooring, upholstery, household appliances, televisions and radios, jewelry, watches and clocks, engineering instruments, medical and surgical instruments, machinery of all kinds, bicycles, office machines and equipment, shoes, tin and sheet metal, mechanical tools, and shop equipment. If the item being installed is specifically exempted from the tax imposed by the Arkansas Gross Receipts Tax, the installation will also be exempt.


Effective July 1, 2004, the Wholesale Vending Tax will increase to 7%.

Effective July 1, 2004, a taxpayer who fails to report or pay two months of Sales and Use Tax will receive a notice advising the business to make arrangements to bring the account current. If the business fails to make arrangements and becomes delinquent for a third month, DFA will have the authority to close the business and post signs stating the reason for the closure. The business may not reopen until satisfactory arrangements have been made.