Taxation
With Arkansas being one of the few states to pass the balanced-budget amendment, this makes it a smart place to start and grow a business. The State’s low cost business environment has helped it to secure jobs and population growth.
Property
Cutter Morning Star .…... 0.0522
Fountain Lake …………………. 0.0384
Hot Springs ……………..……….. 0.0452
Jessieville ….......................... 0.0423
Lake Hamilton …….……….... 0.0438
Lakeside ………………...……….... 0.0449
Mountain Pine ……….…….... 0.0485
* No state property tax, local tax based on school districts
Sales and Use
City of Hot Springs ……….…… 1.5%
Garland County …………………… 1.5%
State of Arkansas ……..…….... 6.5%
Total ……………………...........…… 9.5%
Hotel Occupancy ................. 5.0%
The State of Arkansas does not have a property tax. However, Arkansas cities and counties do collect property tax, which is the principle local source of revenue for funding public schools. The tax is calculated based on 20% of the market value of real and personal property and the average annual value of merchants' stocks and/or manufacturers' inventories based on millage rates in individual school districts. Business firms and individuals are subject to annual property tax on all real and personal property.
For state corporate income tax rates, personal income tax rates, unemployment insurance tax and capital gains tax rates, click here.