Ark. Code Ann. § 26-52-301 (2026)

Except for food and food ingredients that are taxed under § 26-52-317, there is levied an excise tax of three percent (3%) upon the gross proceeds or gross receipts derived from all sales to any person of the following:

1. The following items:
   1. Tangible personal property;
   2. Specified digital products sold:
      1. To a purchaser who is an end user; and
      2. With the right of permanent use or less than permanent use granted by the seller regardless of whether the use is conditioned on continued payment by the purchaser; and
   3. Digital codes;
2. Natural or artificial gas, electricity, water, ice, steam, or any other tangible personal property sold as a utility or provided as a public service;
3. The following services:
   1. 1. Service of furnishing rooms, suites, condominiums, townhouses, rental houses, or other accommodations by hotels, apartment hotels, lodging houses, tourist camps, tourist courts, property management companies, accommodations intermediaries, or any other provider of accommodations to transient guests.
      2. As used in subdivision (3)(A)(i) of this section:
         1. “Accommodations intermediary” means a person other than the owner, operator, or manager of a room, suite, condominium, townhouse, rental house, or other accommodation;
         2. “Furnishing” means brokering, coordinating, making available for, or otherwise arranging for the sale or use of a room, suite, condominium, townhouse, rental house, or other accommodation by a purchaser; and
         3. “Transient guests” means individuals who rent accommodations other than their regular place of abode on less than a month-to-month basis;
   2. 1. Service of initial installation, alteration, addition, cleaning, refinishing, replacement, and repair of:
         1. Motor vehicles;
         2. Aircraft;
         3. Farm machinery and implements;
         4. Motors of all kinds;
         5. Tires and batteries;
         6. Boats;
         7. Electrical appliances and devices;
         8. Furniture;
         9. Rugs;
         10. Flooring;
         11. Upholstery;
         12. Household appliances;
         13. Televisions and radios;
         14. Jewelry;
         15. Watches and clocks;
         16. Engineering instruments;
         17. Medical and surgical instruments;
         18. Machinery of all kinds;
         19. Bicycles;
         20. Office machines and equipment;
         21. Shoes;
         22. Tin and sheetmetal;
         23. Mechanical tools; and
         24. Shop equipment.
      2. Additionally, the gross receipts tax levied in this section shall not apply to the repair or maintenance of railroad parts, railroad cars, and equipment brought into the State of Arkansas solely and exclusively for the purpose of being repaired, refurbished, modified, or converted within this state.
      3. The General Assembly determines and affirms that the original intent of this subdivision (3) which provides that gross receipts derived from certain services would be subject to the gross receipts tax was not intended to be applicable, nor shall Arkansas gross receipts taxes be collected, with respect to services performed on watches and clocks which are received by mail or common carrier from outside this state and which, after the service is performed, are returned by mail or common carrier or in the repairer's own conveyance to points outside this state.
      4. Additionally, the gross receipts tax levied in this section shall not apply to the repair or remanufacture of industrial metal rollers or platens that have a remanufactured, nonmetallic material covering on all or part of the roller or platen surface which are brought into the State of Arkansas solely and exclusively for the purpose of being repaired or remanufactured in this state and are then shipped back to the state of origin.
      5. 1. The gross receipts tax levied in this section shall not apply to the service of alteration, addition, cleaning, refinishing, replacement, or repair of commercial jet aircraft, commercial jet aircraft components, or commercial jet aircraft subcomponents.
         2. “Commercial jet aircraft” means any commercial, military, private, or other turbine or turbo jet aircraft having a certified maximum take-off weight of more than twelve thousand five hundred pounds (12,500 lbs.).
      6. The provisions of subdivision (3)(B)(i) of this section shall not apply to the services performed by a temporary or leased employee or other contract laborer on items owned or leased by the employer. The following criteria must be met for a person to be a temporary or leased employee:
         1. There must be a written contract with the temporary employment agency, employee leasing company, or other contractor providing the services;
         2. The employee, temporary employment agency, employee leasing company, or other contractor must not bear the risk of loss for damages caused during the performance of the contract. The person for whom the services are performed must bear the risk of loss; and
         3. The temporary or leased employee or contract laborer is controlled by the employer as if he or she were a full-time permanent employee. “Control” includes, but is not limited to, scheduling work hours, designating work duties, and directing work performance.
      7. 1. Additionally, the gross receipts tax levied in this section shall not apply to the initial installation, alteration, addition, cleaning, refinishing, replacement, or repair of nonmechanical, passive, or manually operated components of buildings or other improvements or structures affixed to real estate, including, but not limited to, the following:
            1. Walls;
            2. Ceilings;
            3. Doors;
            4. Locks;
            5. Windows;
            6. Glass;
            7. Heat and air ducts;
            8. Roofs;
            9. Wiring;
            10. Breakers;
            11. Breaker boxes;
            12. Electrical switches and receptacles;
            13. Light fixtures;
            14. Pipes;
            15. Plumbing fixtures;
            16. Fire and security alarms;
            17. Intercoms;
            18. Sprinkler systems;
            19. Parking lots;
            20. Fences;
            21. Gates;
            22. Fireplaces; and
            23. Similar components which become a part of real estate after installation, except flooring.
         2. A contractor is deemed to be a consumer or user of all tangible personal property, specified digital products, or digital codes used or consumed by the contractor in providing the nontaxable services, in the same manner as when performing any other contract.
         3. This subdivision (3)(B)(vii) shall not apply to any services subject to tax pursuant to the terms of subdivision (3)(D) of this section.
      8. The gross receipts tax levied in subdivision (3)(B)(i) of this section shall not apply to the service of initial installation of any property that is specifically exempted from the tax imposed by this chapter;
   3. 1. Service of cable television, community antenna television, and any and all other distribution of television, video, or radio services with or without the use of wires provided to subscribers or paying customers or users, including all service charges and rental charges, whether for basic service, premium channels, or other special service, and including installation and repair service charges and any other charges having any connection with the providing of these services.
      2. The tax levied by this section does not apply to services purchased by a radio or television company for use in providing its services.
      3. 1. The tax levied by this section applies to the sale of a subscription for digital audio-visual work and digital audio work to an end user that does not have the right of permanent use granted by the seller and the use is contingent on continued payments by the purchaser.
         2. As used in this subdivision (3)(C)(iii):
            1. “Digital audio-visual work” means an electronically transferred series of related images that when shown in succession, impart an impression of motion, together with accompanying sounds, if any; and
            2. “Digital audio work” means an electronically transferred work that results from the fixation of a series of musical, spoken, or other sounds, including ringtones; and
   4. 1. Service of:
         1. Providing transportation or delivery of money, property, or valuables by armored car;
         2. Providing cleaning or janitorial work;
         3. Pool cleaning and servicing;
         4. Pager services;
         5. Telephone answering services;
         6. Lawn care and landscaping services;
         7. Parking a motor vehicle or allowing the motor vehicle to be parked;
         8. Storing a motor vehicle;
         9. Storing furs; and
         10. Providing indoor tanning at a tanning salon.
      2. As used in subdivision (3)(D)(i) of this section:
         1. “Landscaping” means the installation, preservation, or enhancement of ground covering by planting trees, bushes and shrubbery, grass, flowers, and other types of decorative plants;
         2. “Lawn care” means the maintenance, preservation, or enhancement of ground covering of nonresidential property and does not include planting trees, bushes and shrubbery, grass, flowers, and other types of decorative plants; and
         3. “Residential” means a single family residence used solely as the principal place of residence of the owner;
4. Printing of all kinds, types, and characters, including the service of overprinting, and photography of all kinds;
5. Tickets or admissions to places of amusement or to athletic, entertainment, or recreational events, or fees for access to or the use of amusement, entertainment, athletic, or recreational facilities;
6. 1. Dues and membership fees to:
      1. Health spas, health clubs, and fitness clubs; and
      2. Private clubs within the meaning of § 3-9-202 which hold any permit from the Alcoholic Beverage Control Board allowing the sale, dispensing, or serving of alcoholic beverages of any kind on the premises.
   2. 1. Except as provided in subdivision (6)(B)(ii) of this section, the gross receipts derived from services provided by or through a health spa, health club, fitness club, or private club shall not be subject to gross receipts tax unless the service is specifically enumerated as a taxable service under this chapter.
      2. The gross receipts derived by a private club from the charges to members for the preparation and serving of mixed drinks or for the cooling and serving of beer and wine shall be subject to gross receipts tax as well as any supplemental taxes as provided by law;
7. 1. Contracts, including service contracts, maintenance agreements and extended warranties, which in whole or in part provide for the future performance of or payment for services which are subject to gross receipts tax.
   2. The seller of the contract must collect and remit the tax due on the sale of the contract except when the contract is sold simultaneously with a motor vehicle in which case the purchaser of the motor vehicle shall pay gross receipts tax on the purchase of the contract at the time of vehicle registration; and
8. The total gross receipts derived from the retail sale of any device used in playing bingo and any charge for admittance to facilities or for the right to play bingo or other games of chance regardless of whether the activity might otherwise be prohibited by law.

History. Acts 1941, No. 386, § 3; 1945, No. 64, § 1; 1951 (1st Ex. Sess.), No. 8, § 1; 1957, No. 19, § 1; 1959, No. 260, § 1; 1971, No. 214, § 1; 1973, No. 181, § 1; 1977, No. 500, § 1; 1979, No. 585, § 1; 1981, No. 471, § 1; 1981, No. 983, § 1; A.S.A. 1947, §§ 84-1903, 84-1903.4; Acts 1987, No. 27, § 2; 1987, No. 188, § 1; 1989, No. 769, § 1; 1989 (3rd Ex. Sess.), No. 89, § 1; 1992 (1st Ex. Sess.), No. 58, § 2; 1992 (1st Ex. Sess.), No. 61, § 2; 1992 (2nd Ex. Sess.), No. 5, §§ 1, 2; 1993, No. 282, § 1; 1993, No. 1245, § 4; 1995, No. 257, § 1; 1995, No. 284, § 1; 1995, No. 835, § 2; 1995, No. 1040, § 1; 1997, No. 1076, § 2; 1997, No. 1252, § 1; 1997, No. 1263, § 1; 1997, No. 1359, § 32; 1999, No. 1152, § 2; 1999, No. 1348, § 1; 2001, No. 907, § 2; 2001, No. 1064, § 1; 2003, No. 1112, § 1; 2003, No. 1273, § 6; 2003 (2nd Ex. Sess.), No. 107, §§ 5, 6; 2005, No. 1879, § 1; 2007, No. 110, § 3; 2007, No. 154, §§ 3, 4; 2009, No. 384, § 3; 2011, No. 291, § 9; 2017, No. 141, §§ 15, 16; 2019, No. 822, §§ 20, 21.

A.C.R.C. Notes. Acts 2019, No. 822, § 1, provided: “Legislative findings and intent.

“(a) The General Assembly finds that:

“(1) The Arkansas Tax Reform and Relief Legislative Task Force was charged with:

“(A) Examining and identifying areas of potential tax reform within the tax laws; and

“(B) Recommending legislation to the General Assembly to:

“(i) Modernize and simplify the Arkansas tax code;

“(ii) Make Arkansas's tax laws competitive with tax laws in other states;

“(iii) Create jobs; and

“(iv) Ensure fairness to all taxpayers;

“(2) The state's income tax laws should be amended to modernize and simplify the tax code, increase Arkansas's competitiveness, create jobs, and ensure fairness to all taxpayers;

“(3) The inability to effectively collect any Arkansas sales or use tax from remote sellers who deliver tangible personal property, other property subject to Arkansas sales and use tax, or services directly into the state is seriously eroding the sales and use tax base of this state, causing revenue losses and imminent harm to the state through the loss of critical funding for state and local services;

“(4) The harm from the loss of revenue is especially serious in Arkansas because sales and use tax revenue is essential in funding state and local services;

“(5) Despite the fact that a use tax is owed on tangible personal property, certain other property, or services delivered for use in this state, many remote sellers actively market sales as tax-free or as transactions not subject to sales and use tax;

“(6) The structural advantages of remote sellers, including the absence of point-of-sale tax collection and the general growth of online retail, make clear that further erosion of this state's sales and use tax base is likely to occur in the near future;

“(7) Remote sellers that make a substantial number of deliveries into Arkansas or collect large gross revenues from Arkansas benefit extensively from this state's market, economy, and infrastructure;

“(8) In contrast with the increasing harm caused to the state by the exemption of remote sellers from sales and use tax collection duties, the costs of such collection have decreased because advanced computing and software options have made it neither difficult nor burdensome for remote sellers to collect and remit sales and use taxes associated with sales of goods and services to residents of this state;

“(9) The United States Supreme Court recently upheld the ability of states to compel out-of-state sellers with no physical presence in the state to collect state sales and use taxes; and

“(10) Any savings realized by the state through tax reforms should be dedicated to reducing the tax burden for Arkansas taxpayers.

“(b) It is the intent of the General Assembly to:

“(1) Reform Arkansas tax laws to modernize and simplify the tax code, increase the state's competitiveness, create jobs, and ensure fairness to all taxpayers;

“(2) Offset any revenue savings realized through tax reform with corresponding changes to reduce the tax burden for Arkansas taxpayers;

“(3) Gradually reduce the tax burden on Arkansas taxpayers in a fiscally responsible manner; and

“(4) Act on the recommendation of the Arkansas Tax Reform and Relief Legislative Task Force to repeal the throwback rule for business income when the state's budget would allow for that change to be enacted in a fiscally responsible manner.”

Publisher's Notes. Acts 1992 (2nd Ex. Sess.), No. 5, § 6, provided: “The revenues derived from the tax collected under this act shall be remitted to the State Treasurer, who shall deposit the revenues in the State Treasury as general revenues.”

Amendments. The 2009 amendment rewrote (2).

The 2011 amendment added (3)(C)(iii).

The 2017 amendment added the introductory language of (1); redesignated former (1) as (1)(A); added (1)(B) and (1)(C); and, in (3)(B)(viii) (b) [now (3)(B)(vii) (b) ], inserted “specified digital products, or digital codes”.

The 2019 amendment inserted “accommodations intermediaries” in (3)(A)(i); subdivided part of (3)(A)(ii) as (3)(A)(ii) (c) ; inserted (3)(A)(ii) (a) and (b) ; substituted “individuals” for “those” in (3)(A)(ii) (c) ; and repealed former (3)(B)(ii).

Effective Dates. Acts 2017, No. 141, § 63, as amended by Acts 2017, No. 596, § 1: “Sections 2 through 61 of this act are effective for tax years beginning on and after January 1, 2018.”