Do I owe Use Tax?
You should pay Use Tax if you:
* Purchased items outside Arkansas that would be taxable if purchased in Arkansas (including items from catalogues, TV advertisements, magazines, the Internet, etc.)
* Use, store, consume, or distribute these items in Arkansas, and
* Have not paid Arkansas sales tax or an equivalent amount to another state.
What if I do pay tax to the other state?
If you legally paid sales tax on the items in the other state, you maybe entitled to a reduction in tax for the tax paid to the other state against the tax due Arkansas. If you pay less than the Arkansas tax rate to the other state, you must pay Arkansas the difference.
What are some items on which I would owe Use Tax?
Examples of items subject to Use Tax include records, CD's, books, furniture, jewelry, clothing, food, hunting and fishing gear, etc. These are only a few examples; all tangible personal property purchased out of state is subject to the Use Tax.
How and when do I report and pay Use Tax?
Businesses registered with Arkansas to remit Sales Tax should remit any Use Tax due in Column B on their monthly (quarterly or annual) reporting form.
Individual Consumer Use Tax should be reported on a monthly basis if the total tax amount due is greater than $100 per month, on a quarterly basis if the amount due is $25 - $100 per month, and on an annual basis if the amount due is less than $25 per month.