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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.



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