The Legislature in Arkansas has passed Act 141, which makes significant changes to how sales and use taxes will apply to candy, soft drinks and specified digital products, after January 1, 2018.
Under Act 141, candy and soft drinks will be removed from the current 1.5% reduced-sales tax rate designated for food, which is a rate currently applied, at the state level, on qualifying food sales in Arkansas. Instead, candy and soft drinks will be fully taxable, and subject to the standard 6.5% state sales tax rate. Similarly, Act 141 will apply the standard state and local sales tax rates onto specified digital products. Both of these changes will take effect from January 1, 2018.
More information, regarding these changes can be seen here, which is a summary prepared by the Arkansas Department of Finance and Administration, of all of the changes taking effect in 2017/2018.
About the Author
Erik Wallin is a Senior Tax Counsel on the Tax Research Team at Sovos Compliance. Erik has been with Sovos Compliance since 2011, and his main areas of focus are on U.S. Transaction Tax Law which includes special expertise in the taxation of technology and the taxation mechanisms that apply throughout the Colorado home rule jurisdictions. Erik is a member of the Massachusetts Bar, has a B.A. from York College of Pennsylvania, a J.D. from New England School of Law, and an LL.M. in Taxation from Boston University.More Content by Erik Wallin