Arkansas
Taxes
Arkansas
is among the states with the lowest per capita tax burden.
Corporate
Charter and Franchise Tax
The
Arkansas franchise tax is imposed upon domestic corporations
for the grant of charter privileges and upon foreign
corporations for the privilege of doing business in
the state.
Domestic
for profit corporations pays a charter fee and initial
franchise tax upon filing articles of incorporation.
The charter fee is $50. Corporations with no authorized
capital stock pay an annual tax of $ 300 regardless
of valuation. No corporation shall pay less that $50
or more than $1,075,000. After the initial payment,
the franchise tax is due May I of each year.
Corporate
Income Tax
All
corporations doing business in the state, whether foreign
or domestic, are subject to tax on net income.
The rates are as follows:
|
First
$3,000 - 1%
|
Next
$14,000 - 5%
|
|
Next
$3,000 - 2%
|
Next
$25,000 - 6%
|
|
Next
$5,000 - 3%
|
In
excess of $100,000 - 6.5%*
|
*The
revenue derived from this 6.5% tax will help fund an
improved program for work force retraining and literacy
training.
Pursuant
to the Multi-State Tax Compact, income derived from
both within and withuut Arkansas is apportioned for
taxation according to the percent of property and payrolls
utilized in the state and sales attributable to Arkansas.
A
net operating loss can be deducted from gross income
and carried forward for a total period of five years
succeeding the year of such loss. Operating steel mills
may carry forward the loss for ten years.
Johnson
County Taxes
Real
Estate and Personal Property Tax
The state has no property tax, but taxes
on property are levied annually by cities and counties.
Taking 20 percent of the market value arrives at the
assessed value of real and personal property. Tax rates
for 1996 (Ordinance No. 740) - Collected October 10,
1997 are as follows:
|
School District
|
County
Schools
|
County
General
|
County
Road
|
Hospital
|
Library
|
Total
Rural
|
Total
City
|
City
|
|
#
7 Oark
|
33.0
|
5.0
|
3.0
|
0.3
|
1.0
|
42.3
|
----
|
----
|
|
#17
Clarksville
|
33.0
|
5.0
|
3.0
|
0.3
|
1.0
|
43.8
|
2.2
|
47
|
|
#17C-39
Clarksville
|
29.33
|
5.0
|
3.0
|
0.3
|
1.0
|
44.63
|
2.2
|
47.83
|
|
#39
Lamar
|
29.33
|
5.0
|
3.0
|
0.3
|
1.0
|
44.63
|
6.0
|
51.63
|
|
#39
Knoxville
|
29.33
|
5.0
|
3.0
|
0.3
|
1.0
|
44.63
|
5.0
|
50.63
|
|
#40
Coal Hill
|
32.0
|
5.0
|
3.0
|
0.3
|
1.0
|
46.3
|
5.0
|
52.3
|
|
#40
Hartman
|
32.0
|
5.0
|
3.0
|
0.3
|
1.0
|
46.3
|
4.7
|
52.0
|
|
#14F
Franklin
|
31.28
|
5.0
|
3.0
|
0.3
|
1.0
|
42.3
|
----
|
43.3
|
|
#17P
Pope
|
29.46
|
5.0
|
3.0
|
0.3
|
1.0
|
44.86
|
----
|
45.88
|
|
#21N
Newton
|
32.0
|
5.0
|
3.0
|
0.3
|
1.0
|
42.3
|
----
|
43.3
|
Personal
Income Tax
Individuals,
estates and trusts residing within Arkansas or deriving
income from within the state, and nonresidents deriving
income from within the state are subject to a state
income tax. The rates on net taxable income are as follows:
|
First
$2,999
|
1.0%
|
Next
$ 6,000
|
4.5%
|
|
Next
$3,000
|
2.5%
|
Next
$10,000
|
6.0%
|
|
Next
$3,000
|
3.5%
|
$25,000
or over
|
7.0%
|
Sales and Use Tax
|
City
of Clarksville
|
1.0%
(Oct. 1, 2003)
|
|
Johnson
County
|
1.0%
|
|
State
of Arkansas
|
6%
|
|
Total
in Corporate Limits
|
8%
|
| IN
ADDITION: |
|
| Hamburger
Tax |
1%
|
| Hotel
Tax |
2%
|
