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Arkansas Offers Rebates on Purchases

by DMA Staff | Sep 21, 2018

Manufacturers purchasing repair or replacement parts may claim a rebate on the tax paid on the ET-1, Sales and Use Tax Return. The rebate is a result of Act 465 passed last year. Effective July 1, 2018, rates applicable to the purchases will steadily decrease until fully exempt. Below is a list of the decreased rates per year.  

July 1, 2014 – June 30, 2018 the net tax rate was 5.5% 

July 1, 2018 – June 30, 2019 the net tax rate is 4.5% 

July 1, 2019 – June 30, 2020 the net tax rate will be 3.5% 

July 1, 2020 – June 30, 2021 the net tax rate will be 2.5% 

July 1, 2021 – June 30, 2022 the net tax rate will be 1.5% 

Effective July 1, 2022, the rate will be 0.00% and fully exempt from taxation.

This article is part of DMA's Completely Compliance quarterly newsletter. Stay up to date with sales and use tax news, events, and information by signing up for the newsletter here.