Polk County (AR) Sales Tax

  • Comments: Comments Off on Polk County (AR) Sales Tax

Each business in Arkansas needs to collect sales taxes to then pay up to the Department of Revenue. The sales taxes are added to qualifying items and services sold. The sales tax rate is made up of the sum of the State sales tax, county sales tax, city sales tax, and in some cases, there are extra special district sales rates. The maximum sales tax applicable in Polk County, Arkansas reaches 9.50%. The sales tax in Arkansas is 6.50%. Polk County charges an extra 2.00% sales tax rate. Some cities charge up to an additional 1% on the sales tax rate, hence we get the maximal result of 9.50% sales tax rate.

Polk County Sales Tax Calculator, Arkansas

$
-or- Specify Sales Tax Rate
-or- Specify ZIP Code
%

When you are selling or buying, you need to know the total sales tax applicable to your transaction. Since each city and district has its own applicable sales tax rate, it is easy to get lost. For this reason, we have created an online calculator that figures all of this out for you. All that you must do is input your zip code and the price of the transaction. The calculator will apply the sales tax rate of that zip code and will give you a result. This way you do not need to look around and search on multiple sites.

Tax Rates by City in Polk County, Arkansas

In the USA, each district, each city has its own applicable sales tax rate. The total sales tax rates vary from a minimum of 8.50% to a maximum of 9.50%. To learn more about what is the general applicable sales tax rate for each city in Arkansas, see the table below. All you must do is to look for your designated city and read the applicable sales tax rate.

City Sales Tax Rate Zip-code Population
Mena 9.50% 71953 10761
Cove 8.50% 71937 1279
Hatfield 8.50% 71945 1069

Alternative sales tax rate for Polk County.

County Max Combined Tax State Tax County Tax City Tax Special Tax
Benton County 9.75% 1.00% 2.25% 0%
Jefferson County 10.00% 1.25% 2.25% 0%
Lonoke County 11.00% 1.50% 3.00% 0%
Miller County 10.25% 1.25% 2.50% 0%
Crawford County 9.25% 1.25% 1.50% 0%
White County 9.75% 1.75% 1.50% 0%
Saline County 9.88% 0.38% 3.00% 0%
Crittenden County 10.25% 1.75% 2.00% 0%
Columbia County 10.38% 1.50% 2.38% 0%
Grant County 7.75% 1.25% 0% 0%
Carroll County 7.00% 0.50% 0% 0%
Sevier County 10.63% 3.13% 1.00% 0%
Madison County 8.50% 2.00% 0% 0%
Jackson County 10.25% 2.25% 1.50% 0%
Little River County 11.38% 2.88% 2.00% 0%
Logan County 10.00% 2.00% 1.50% 0%
Lawrence County 11.00% 2.50% 2.00% 0%
Dallas County 10.00% 2.00% 1.50% 0%
Clay County 10.00% 1.50% 2.00% 0%
Lafayette County 9.75% 2.25% 1.00% 0%
Newton County 9.50% 1.00% 2.00% 0%

Popular questions about sales tax in Polk County

Who pays sales tax when selling a car privately?

When you purchase a car, the laws regarding the applicable sales tax are a bit more complicated. The first factor to consider is that there is a base 6% sales tax. Let’s say that your car costs 10k. You pay 6% on that, which is $600 on sales tax. On top of this cost, you also pay fees for vehicle registration and licenses. If you complete the transaction via a dealership, then all this paperwork and its cost are factored in on the sales agreement. If you buy the car via a private seller, then it is you, the buyer that needs to process all this paperwork via the local tax office and vehicle registration office. You would be responsible for paying registration fees and the title.

States allow for trade-in allowances, and this is a fantastic way to reduce your tax bill. Instead of selling your old vehicle, and then incurring sales taxes on that transaction, you can bring your old vehicle to the dealership and do a trade-in allowance for a new car. The value of the trade-in is reduced from the sticker price of the car that your intent to purchase. Then some dealerships offer rebates, which further reduces your total sales tax.

Let’s say that you will purchase the same car as in the above example that costs 10k. Instead, this time you have an old car to do a trade-in that is valued at 2k. The dealership offers you a 1k rebate offer. In that case, your sales tax will not be charged anymore on the original price of 10k, but it will be charged on the reduced price after the rebate and the trade-in. More specifically, we will reduce from 10k, the value of the rebate (1k) and the value of the trade-in (2k), hence a total of 3k of discount. We would end up paying out-of-pocket 7k. The applicable sales tax on a 7k car is $7000*6%= $420. We can see that we are paying a lower sales tax compared to the previous tax of $600. We are not paying any taxes on the old car that you brought for a rebate and not paying any sales taxes on that.

How is an excise tax different from a sales tax?

There are some special goods and services that do not qualify for the sales tax rate but instead are charged another rate. The most common category of these items falls under the excise tax. This is a special tax rate that is charged to gas, fuel, tobacco, and other goods that are heavily regulated by the government. Some services qualify for excise tax, such as using the highway. Air travel is in this category too.

Why do we pay sales tax?

Sales taxes are collected by the Department of Revenue. The taxes go to the General Fund, and it funds government expenses. Some parts of the sales tax fund state operations, such as K-12 education. The money can be used to fund other public services. The money collected from taxes is also used to pay the wages of jobs that are related to government agencies, such as police departments, libraries, museums, etc.

What is a sales tax certificate?

A sales tax certificate is a document that allows a business to make sales-tax-free purchases of goods and services that it intends to reuse for business and to later sell and collect sales tax on. Some states allow buyers and businesses that engage in frequent transactions to create a blanket certificate. This is a simplified version of the sale certificate, and it is valid for a specified amount of time.

Sellers that do not have a large volume of transactions do not even need a sale certificate. Such is the case of garage sales. Some states offer direct payment certificates, which allow for the purchasers to not pay any sales tax to their sellers, but they pay everything to the government directly. There are numerous intricate scenarios and for this, you need a good CPA or a sales law specialist to better guide you.

What states have sales tax?

45 states (do not levy these taxes in the states Alaska, Oregon, Delaware, Montana and New Hampshire) and the District of Columbia impose general sales taxes that apply to the sale or lease of most goods and some services, and states also may levy selective sales taxes on the sale or lease of particular goods or services. States may grant local governments the authority to impose additional general or selective sales taxes.