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Below is a snapshot of key features of Arkansas's tax system. (Scroll Down)
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State & Local Revenue (FY08)
- General Revenue, Own-Source (GROS): $13.6 billion
- General Revenue as a Share of Income: 15%
- Tax Revenue: $9.4 billion
- Tax Revenue as Share of income: 10.3%
- Personal Income Tax (Share of Tax Revenue): 24.9% (24 out of 51)
- Corporate Income Tax (Share of Tax Revenue): 3.6% (27 out of 51)
- Sales & Excise Tax (Share of Tax Revenue): 51.4% (7 out of 51)
- Property Tax (Share of Tax Revenue): 15.5% (49 out of 51)
- Other Taxes (Share of Tax Revenue): 3% (29 out of 51)
Personal Income Tax Features (2011)
- Range of Tax Rates: 1.0% - 7.0%
- Standard Deduction: $2,000 ($4,000 for Married Couples)
- Personal Exemption: Credit=$23
- Dependent Exemption: Credit=$23
- Earned Income Tax Credit (EITC): None
- Deduction for federal income taxes paid
- Notable capital gains preference
Corporate Income Tax Features (2011)
- Range of Tax Rates: 1.00% - 6.50%
- Income Level at Which Top Rate Applies: $100,000
- Combined Reporting: No
- Apportionment Factor (Payroll): 25%
- Apportionment Factor (Property): 25%
- Apportionment Factor (Sales): 50%
Sales Tax Features (2011)
- State Sales Tax Rate: 6.00%
- Average Local Sales Tax Rate: 2.25%
- Average Combined State & Local Sales Tax Rate: 8.25%
- State Sales Tax Treatment of Groceries: 1.5%
- Local Sales Tax Treatment of Groceries: Taxed
- Number of Services Taxed: 72 out of 168 surveyed
- Streamlined Sales Tax Membership: Full
- "Amazon law" in effect
- Vendor Compensation available with high ceiling
- Sales tax holiday offered in 2011
Property Tax Features (2011)
- Provides a homestead credit.
Other Tax & Revenue Features (2011)
- Gasoline Tax Rate (per gallon): $0.218
- Diesel Tax Rate (per gallon): $0.228
- Cigarette Tax Rate (per pack): $1.15
- Estate or Inheritance Tax: No
- Net Lottery Sales Per Capita: Unknown
Tax Policy Oversight
- Tax Expenditure Report: Yes, but excludes at least one major tax
- Tax Incidence Analysis Capability: None
Last Updated August 25, 2011
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