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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%
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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
|
----
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43.3
|
|
#17P
Pope
|
29.46
|
5.0
|
3.0
|
0.3
|
1.0
|
44.86
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----
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45.88
|
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#21N
Newton
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32.0
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5.0
|
3.0
|
0.3
|
1.0
|
42.3
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----
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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
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1.0%
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Next
$ 6,000
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4.5%
|
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Next
$3,000
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2.5%
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Next
$10,000
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6.0%
|
|
Next
$3,000
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3.5%
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$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
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6%
|
|
Total
in Corporate Limits
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8%
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TAXES....