The state of Arkansas has historically capped local sales tax paid to suppliers on business purchases with invoices exceeding $2,500.
In recent years, the state reduced the statute available to seek the refunds to one year. Therefore, companies need to actively pursue the refunds to help ensure they do not overpay tax.
Arkansas rebate requests may be submitted within one year from the date of purchase or the date of tax payment to the seller. Although this program may seem straightforward, companies often miss out on some refunds due to its unique rules. Rebate periods expire at the end of each month, so the sooner you participate, the sooner you may see a rebate.
BDO’s knowledgeable state Sales & Use Tax professionals can perform the majority of work required to take advantage of the Arkansas local tax rebate program. By outsourcing the labor needed to claim these rebates, you can expect:
- Automation of a historically manual process.
- Assistance with monthly report claims or filing with the Arkansas Department of Finance and Administration.
- Assistance claiming reimbursement for businesses that do not hold active sales and use tax permits.
- Application of obscure rebate rules that may lead to additional tax savings.
- Review of general sales and use tax over payment.
Talk to a BDO Sales & Use Tax Professional
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