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New services subject to sales tax on July 1.

On July 1, business owners in services previously exempt will be subject to collecting and reporting new state sales tax and city and county sales taxes to the Department of Finance and Administration.

Business owners must be registered and a permit issued before July 1.

The Arkansas State Sales and Use Tax rate increased from 5.125 percent to 6 percent on March 1 after passage of Act 107 during the Special Session of the General Assembly that dealt with raising more money to pay for educational reform.

Also effective July 1, the Wholesale Vending Tax will increase to 7 percent.

The services subject to the new taxes include:

* Wrecker and towing

* Collection and disposal of solid waste

* Cleaning parking lots and gutters

* Dry cleaning and laundry

* Industrial laundry

* Furnishing campground spaces or trailer spaces at public or privately owned campgrounds on less than a month-to-month basis

* Locksmith

* Mini warehouse and self-storage rental

* Body piercing, tattooing and electrolysis

* Security and alarm monitoring

* New installation and replacement labor for flooring

* Boat storage and docking fees

* Pet grooming and kennel

* Pest control

The sales tax also will apply to these initial installation services: motor vehicles, aircraft, farm machinery and implements, motors of all kinds, tires and batteries, boats, electrical appliances and devices, furniture, rugs, flooring, upholstery, household appliances, televisions and radios, jewelry, watches and clocks, engineering instruments, medical and surgical instruments, machinery of all kinds, bicycles, office machines and equipment, shoes, tin and sheet metal, mechanical tools and shop equipment. If the item being installed is eligible for an exemption from the sales tax, the installation service for the item will also be exempt.

For more information, visit or call the Sales and Use Tax Section's office in Little Rock at (501) 682-7104.
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Title Annotation:Inside Business
Comment:New services subject to sales tax on July 1.(Inside Business)
Author:Henry, John
Publication:Arkansas Business
Article Type:Brief Article
Geographic Code:1U7AR
Date:Jun 28, 2004
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